The Dynamics of Social, Economic, and Cultural Changes and the Role of Institutions in Supporting Agribusiness Development in The Oil Palm Plantation Area

Abstract

The purpose of this research is to reveal the dynamics of social, economic, and cultural changes in agribusiness institutions in oil palm development locations. Then reveal the role of each agribusiness institution in the location of oil palm development. Using a qualitative approach to build a post-positivism approach. The research location is limited to the community (in this case farmers), consisting of independent farmers and plasma farmers. The results of the study found that there were changes in demographic patterns around oil palm plantations that other researchers had not uncovered (the findings of this study), namely social stratification, patterns of indirect (easier) interactions, and improved health status. The role of institutions in supporting agriculture is very vital in accommodating the interests of farmers. The farmer groups formed are capable of acting as learning vehicles, production units, and collaboration vehicles. In terms of increasing the capacity of farmers, extension agents also play an important role in supporting farming. Specifically, Cooperatives do not only partner, providing production, transportation, and Marketing Facilities, besides that there is risk management. Risk management covered by cooperatives is engineering business, financial, social, and legal risk management.