The study found that majority of the farmers still apply traditional practices in their plantations and far below the standard of good agricultural practices and certification standards. The sample size were 220 farmers and chosen randomly from each group (80, 60 and 80 farmers for each group respectively). Population of this study is oil palm smallholder farmers in Ukui Subdistrict, Pelalawan District, Riau Province which consist of RSPO-certified independent smallholders, Non-certified independent smallholders, and RSPO-certified scheme smallholders. The objective of this study is to analyze position and capacity of oil palm smallholders in facing global change in international market. However, oil palm smallholders are vulnerable from issues related to unsustainable production including environmental, social and legal issues which might lower access and exclude smallholder access to global market.
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The number of farmers involves in oil palm plantation encompass 2.3 million farmers which have been an important driver for economic growth in rural areas. Smallholder plantations account for 41.4% of total oil palm plantation areas and represents 36.6% of total CPO produced in Indonesia in 2015. Oil palm smallholders are potential actors to be included in the global palm oil market.
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