Strategies for improving independent oil palm smallholders’ welfare in Konawe Regency, Southeast Sulawesi

Abstract

The oil palm plantation sector in Konawe Regency, Southeast Sulawesi, plays a vital role in the regional economy: absorbing labour, encouraging economic growth, and improving oil palm smallholders’ welfare. The welfare of independent oil palm smallholders (farmers) has not been maximized, even though smallholders are faced with fulfilling their basic household needs. This research aims to identify strengths, weaknesses, opportunities, and threats and provide strategies for improving the welfare of independent palm oil smallholders in Konawe Regency. This study used primary data (interviews, observations, focus group discussions, and documentation) and secondary data (literature review). SWOT analysis was used to determine the factors of opportunities, threats, strengths, and weaknesses and formulate strategies to improve independent oil palm smallholders’ welfare. The research findings show that weaknesses and opportunities are the main priorities for strengthening smallholder welfare. Factors affecting the welfare of smallholders are the quality and selling price of fresh fruit bunches, oil palm workers and farmers’ skills, production costs, maintenance of oil palm plantations, and oil palm farming institutions. As for the results of the SWOT analysis, the primary strategy is the formation and enhancement of the role of independent oil palm smallholder institutions in Konawe Regency.