RSPO Certification Impacts on Oil Palm Smallholders' Welfare in Jambi Province

Dompak Mt Napitupulu • Nfn Rosyani • Ernawati Hd • Rukaiyah Rafiq
Journal article Analisis Kebijakan Pertanian • 2017 Indonesia

Abstrak

World demand for Crude Palm Oil (CPO) consistently increases. On the other hand, CPO market moves slowly probably due to Roundtable on Sustainable Palm Oil (RSPO) certification. International trade system requires large CPO producers to have a RSPO Certificate as one of requirements for exporting their product. It is expected that this requirement will also be applied immediately to smallholding oil palm plantations. This paper aims to analyze the benefits of RSPO certification on improving oil-palm smallholders' welfare in Jambi Province. Data collected in this study were analyzed using both descriptive and quantitative methods. Results of the study showed that RSPO certification, in several aspects, significantly improved farmers'' wealth, timely availability of input factors, oil palm yield, processing and marketing, and CSR financial support. It also indicates that oil palm plantation companies tend to give preferential treatment in transaction process with farmers having RSPO certificates.

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