Socioeconomic and cultural impacts of oil palm plantation development in Indonesia

Abstract

Oil palm industries in Indonesia continue to grow and gave impacts for communities around the plantations. For this cause, it is significant to identify the socioeconomic and cultural impacts on the residential districts around the oil palm plantations and the community’s perceptions of the existence of oil palm plantations. The purpose of the study was to assess the social, economic and cultural impacts of oil palm plantations on the local community and their perceptions of oil palm plantations existence. The research was carried out in several oil palm plantations in Central Kalimantan, West Kalimantan, Lampung, South Sumatra, Riau and Merauke during the 2015-2017 period. Data collection was gathered through literature studies, Focus Group Discussions (FGD), Likert Scale questionnaires and observations. Data analysis were carried out using both qualitative and quantitative approaches. The results showed that the existence of oil palm plantations influenced the lives of the surrounding communities. On the socioeconomic aspect, the existence of oil palm plantations had opened up employment opportunities, opened and increased business opportunities, and increased community incomes. On the socio-cultural aspect, the existence of oil palm plantations has helped in building educational, religious, health and other infrastructure facilities. Nevertheless, it could not be denied that positive impacts have also led to various social changes within the society, including changes in the people’s lifestyles and reduced community social encounterment.