The Impact of Oil Palm Plantation Extensification on Poverty Rates in Bangka Belitung Islands Province

Dwi Ayu Lestari (Universitas Terbuka)
Dian Priastiwi (Universitas Terbuka)

JER
Vol. 9 No. 2 (2026): April - September

Poverty remains a development challenge in the Bangka Belitung Islands Province. This study aims to analyze the effect of oil palm plantation extensification on poverty levels in districts/cities in the Bangka Belitung Islands Province during the 2017–2024 period. The study uses panel data from seven districts/cities with 56 observations and is analyzed using panel data regression. The Hausman test results show that the Random Effect Model is the best model. The estimation results indicate that the area of oil palm plantations has a negative and significant effect on poverty levels. However, the effect size is relatively small, so poverty reduction requires improvements in productivity and plantation efficiency.