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All Journal Agrisocionomics: Jurnal Sosial Ekonomi Pertanian Agro Bali: Agricultural Journal
Ulidesi Siadari
Jambi University
Agriculture, Biological Sciences & Forestry

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Smallholder Oil Palm Farming Based on ISPO Certification: Sustainable or Not? Mirawati Yanita; Gina Fauzia; Rozaina Ningsih; Dompak MT Napitupulu; Karina Rahmah; Ulidesi Siadari; Zulkifli Alamsyah
Agrisocionomics: Jurnal Sosial Ekonomi Pertanian Vol 10, No 2 (2026): June 2026
Publisher : Faculty of Animal and Agricultural Science, Diponegoro University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14710/agrisocionomics.v10i2.30508

Abstract

Oil Palm farming has a substantial positive impact on job creation and the socio-economic conditions of communities, particularly in rural areas. However, a major challenge faced by smallholder Oil Palm farmers, especially those operating on a small scale, is the sustainability of their farming practices. These barriers often hinder the implementation of sustainable agricultural practices that align with certification standards, particularly the Indonesian Sustainable Oil Palm (ISPO) standards. This study aims to describe the social and economic characteristics of ISPO-certified smallholder Oil Palm farmers, analyze management practices based on farm performance, and assess the sustainability model of smallholder Oil Palm farming in Merangin Regency, as reflected in ISPO certification. The research was conducted in Nalo Tantan District, which has varying levels of Oil Palm productivity and ISPO-certified smallholder farmers. The study used observational methods, direct interviews, and secondary data analysis from relevant institutions and scientific literature. A sample of 60 respondents was selected for the study. The results showed an average Oil Palm production of 84.43 tons/ha/year with an average selling price of IDR 2,682/kg. The average land area used by farmers was 3.40 ha, with fertiliser use of 840 kg/ha/year and pesticide use of 7.1 liters/ha/year. The sustainability analysis showed that ISPO-certified smallholder Oil Palm farming in Nalo Tantan has a relatively good sustainability status, with a sustainability index of 66.99. The economic dimension was highly sustainable with a score of 77.85, while the social and ecological dimensions were moderately sustainable, scoring 57.76 and 67.22, respectively. It is crucial to strengthen certification implementation, improve social and environmental management, and support economic sustainability by enhancing resource management and expanding market access. 
Does RSPO Certification Increase Smallholder Oil Palm Income? Evidence from Batanghari, Indonesia Mirawati Yanita; Ira Wahyuni; Dompak MT Napitupulu; Gina Fauzia; Karina Rahmah; Ulidesi Siadari
Agro Bali : Agricultural Journal Vol 9, No 1 (2026)
Publisher : Universitas Panji Sakti

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37637/ab.v9i1.2516

Abstract

This study analyzes income differentials between independent oil palm smallholders certified by the Roundtable on Sustainable Palm Oil (RSPO) and non-certified farmers in Maro Sebo Ilir District, Batanghari Regency, Indonesia. Although certification is promoted as a mechanism to enhance smallholder welfare, empirical evidence remains inconclusive, and few studies examine net income differences disaggregated by plant age under uniform price conditions. Primary data were collected from September 2022 to August 2023 from 60 farmers (30 RSPO-certified and 30 non-certified), categorized into two plant age groups: 11–18 years and 19–26 years. Farm income was calculated as total revenue minus total cost and analyzed using independent-samples t-tests. The results indicate that RSPO-certified farmers achieved higher productivity and income despite incurring higher input costs. Average annual incomes among certified farmers reached IDR 25,600,675 and IDR 25,785,872 per hectare for the 11–18 and 19–26-year groups, respectively, compared with IDR 20,144,977 and IDR 20,766,920 among non-certified farmers. Income differences of approximately 27.1% and 24.2% were statistically significant (p < 0.05). The findings suggest that income gains are primarily associated with improved technical efficiency, intensified input use, and institutional support rather than price premiums, and remain contingent upon local market and institutional conditions.
Co-Authors Dompak MT Napitupulu Dompak MT Napitupulu Gina Fauzia Gina Fauzia Ira Wahyuni Karina Rahmah Karina Rahmah Mirawati Yanita Rozaina Ningsih Zulkifli Alamsyah