Abstract

Indonesian smallholder oil palm plantations are facing both economic and ecological challenges, therefore the farmers struggle to be resilient. This study constructs two purposes, (1) to measure the resilience level of smallholder plantations, and (2) to assess the effect of economic and ecological disruption on smallholders’ resilience. We interviewed a sample of 120 smallholders in South Bengkulu regency, Bengkulu Province, Indonesia. The methodology deploys a quantitative method (statistics and econometrics) to analyze the effect of disruptive incidents on smallholders’ resilience. Resilience is indicated by farmers’ ability to adapt to changes, to recover from downturn business conditions or catastrophes, to anticipate risk, and to innovate new designs of farming activities. Resilience is categorized as less or more resilient (binary). The economic disruption is triggered by production, market, and investment circumstances. Meanwhile, ecological disruption is resulted from natural disasters, climate change, farmer’s treatment of the land, land fire, and government environmental policy. The result shows that more than 60% of smallholder oil palm plantations in Bengkulu Province are less resilient. Production uncertainty, bargaining position, climate change, and environmentally unfriendly farming behaviours increase the possibility of lowering smallholders’ resilience level.

Highlights

  • In Indonesia, 38.26% of oil palm production is generated by smallholder plantations [1]

  • The research was conducted in South Bengkulu regency, Bengkulu Province, Indonesia

  • The resilience of smallholder oil palm farmers was measured by farmer’s perception about how they adapt to environmental changes, recover from downturn business conditions or catastrophes, anticipate risk, and innovate new design of farming activities

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Summary

Introduction

In Indonesia, 38.26% of oil palm production is generated by smallholder plantations [1]. Smallholder agriculture is typically complex and heterogeneous in terms of economicecological system that is especially susceptible to perturbations. They are vital in ensuring food security in many developing countries [2]. Smallholder agriculture is often characterized by the incidence of poverty [6] Under conditions, those characteristics, uncertainties, and disturbances can cause disruption and significantly degrade smallholder plantation resilience

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