Article

Article Based On Issue

PARTNERSHIP MODELS INVOLVING INDEPENDENT SMALLHOLDERS IN INDONESIAN PALM OIL SUPPLY CHAIN: A BRIEF REVIEW

Authors

Syamsul Anwar

ATI Polytechnic Padang, Indonesia

Demi Ramadian

ATI Polytechnic Padang, Indonesia

Irna Ekawati

ATI Polytechnic Padang, Indonesia

Indah Kurnia Ramadhani

ATI Polytechnic Padang, Indonesia

Page :

358 - 365

Keyword : Independent smallholders, palm oil supply chain, partnership, review

Abstract :

The palm oil industry has become a major driver of the Indonesian economy. In this respect, independent smallholders play an important role as suppliers of fresh fruit bunches in the palm oil-processing industry. However, independent farmers are in a weak position in the palm oil supply chain, from both economic and global demand perspectives. This study aims to (1) identify the main problems faced by independent smallholders, (2) summarize the findings of previous research that examines aspects of partnerships for independent smallholders, and (3) provide directions for future research on the subject of partnerships involving independent smallholders in the Indonesian palm oil supply chain. This study applies a concise review to achieve its research objectives. The results of the literature review show that the types of problems faced by independent smallholders are quite diverse, among which the most reported are low plantation productivity, lack of capital,  including the inputs needed to run plantations, and limited marketing access (oil palm processing industry). Generally, related studies can be grouped into three groups: assessment or evaluation of partnership models, selection of partnership models based on certain aspects, and development of partnership models. Future research directions include the implementation of the proposed partnership model, identification of key success factors of the partnership model, and deployment of quantitative methods to test various scenarios of partnership models for smallholders in the palm oil supply chain.

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