Palm oil farmers’ welfare: a geographical information system approach

Suhartono, Suhartono
Rahayu, Heffi Christya
Hidayat, Hidayat
Indramawan, Dendy

AGRIEKONOMIKA
Vol 14, No 2: October 2025

This study analyzes the welfare paradox in Rokan Hulu Regency, where abundant natural resources coexist with low community welfare. Using the Lorenz curve and Gini index, spatial mapping was employed to create a socio-demographic map. Primary data were analyzed with the Slovin method and Gini index models. Results show high inequality, with Gini index values of 0.81 (income-based) and 0.84 (expenditure-based). To address this, the government can support oil palm farmers through policies on fertilizer subsidies, worker wage regulation, and standardized palm oil pricing, aiming to improve the economic conditions of the farming community.