The challenges Indonesian oil palm smallholders face when replanting becomes necessary, and how they can be supported: A review

Petri, Heinrich et al. Working Paper The challenges Indonesian oil palm smallholders face when replanting becomes necessary, and how they can be supported: A review EFForTS Discussion Paper Series, No. 36 Provided in Cooperation with: Collaborative Research Centre 990: Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia), University of Goettingen Suggested Citation: Petri, Heinrich et al. (2022) : The challenges Indonesian oil palm smallholders face when replanting becomes necessary, and how they can be supported: A review, EFForTS Discussion Paper Series, No. 36, GOEDOC, Dokumentenund Publikationsserver der Georg-AugustUniversität, Göttingen, https://doi.org/10.3249/2197-6244-sfb990-36 This Version is available at: https://hdl.handle.net/10419/268260 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by-nc-nd/4.0/ The challenges Indonesian oil palm smallholders face when replanting becomes necessary, and how they can be supported – a review Heinrich Petri, Dienda Hendrawan, Tobias Bähr, Rosyani Asnawi, Oliver Mußhoff, Meike Wollni, Heiko Faust EFForTS Discussion Paper Series No. 36 November 2022 This publication was funded by the Deutsche Forschungsgemeinschaft (DFG, German Research Foundation) – project number 192626868 – in the framework of the collaborative German-Indonesian research project CRC 990 (SFB): “EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)” https://www.uni-goettingen.de/de/about+us/413417.html SFB 990, University of Goettingen Untere Karspüle 2, D-37073 Goettingen, Germany ISSN: 2197-6244 ii Managing editors: at the University of Goettingen, Germany: Prof. Dr. Heiko Faust, Faculty of Geoscience and Geography, Division of Human Geography (Email: [email protected]) Dr. Jana Juhrbandt, Environmental and Resource Economics, Department for Agricultural Economics and Rural Development (Email: [email protected]) at the University of Jambi, Indonesia: Prof. Dr. Zulkifli Alamsyah, Faculty of Agriculture, Dept. of Agricultural Economics (Email: z[email protected]) This work is licensed under a Creative Commons Attribution-NonCommerical-NoDerivatives 4.0 International License. DOI: https://doi.org/10.3249/2197-6244-sfb990-36 1 The challenges Indonesian oil palm smallholders face when replanting becomes necessary, and how they can be supported – a review Heinrich Petri1*, Dienda Hendrawan2, Tobias Bähr2, Rosyani Asnawi3, Oliver Mußhoff2, Meike Wollni2 and Heiko Faust1 4 Abstract Three decades after the establishment of many smallholder oil palm plantations, large areas of oil palm will require replanting soon or are already overmatured. The process of replanting offers a unique opportunity to redesign plantations, close yield gaps, boost productivity and therefore secure income and livelihoods, but requires knowledge, inputs and financing. If postponed or done incorrectly, replanting could further exacerbate existing challenges in smallholder oil palm cultivation, both socioeconomic and environmental. In this review, we collect relevant literature on replanting of oil palm, especially in the realm of smallholder cultivation, to highlight the challenges smallholders will face when replanting. We find that access to inputs, finances and know-how differ greatly between groups of smallholders. This will likely affect smallholder’s decisions when, how and what to replant. Information on replanting, proper training, access to high-quality seedlings as well as eligibility for public replanting funds will determine the success of smallholder replanting efforts in Indonesia but are distributed unevenly currently. We finish the review with recommendations for both policy-makers and researchers on how to overcome the challenges replanting holds and capitalize on the opportunity replanting offers rather than exacerbating existing issues. Keywords: oil palm, replanting, smallholder, livelihood, Indonesia, Sumatera 1 Department of Human Geography, University of Goettingen, Goldschmidtstraße 5, 37077 Goettingen, Germany ² Department of Agricultural Economics and Rural Development, University of Goettingen, Platz der Goettinger Sieben 5, 37073 Goettingen, Germany 3 Jambi University, Department of Agribusiness, Jambi, Jambi Province, Indonesia 4 Centre of Biodiversity and Sustainable Land Use, University of Goettingen, Buesgenweg 1, 37077 Gooettingen, Germany * Corresponding author, email: Corresponding author, email: [email protected] 2 1. Introduction Before the Indonesian government launched its transmigration programme in the 1980s, its palm oil production was practically non-existent. The cultivation area only covered 1.6 Mha (Wicke et al. 2011). As part of the programme, however, Indonesia’s palm oil production grew rapidly, and the country is now the largest producer of the widely used oil (Statista 2021; Naylor et al. 2019). The transmigration programme did not only aim to relocate volunteers to fight overpopulation in some regions. But there was also the purpose of boosting the economy and reducing poverty by giving transmigrants land to cultivate oil palm in smallholding plantations (Rival and Levang 2014; Kunz et al. 2017; Schleicher et al. 2019). These smallholders became an important pillar for Indonesia’s palm oil production (Kubitza 2018; Naylor et al. 2019; Qaim et al. 2020). They now cultivate 41% of the Indonesian oil palm plantation area (Herdiansyah et al. 2020) and produce one third of Indonesia’s palm oil (Statista 2021). In the 1990s the number of smallholder oil palm plantations skyrocketed (Naylor et al. 2019), particularly in rural regions, like Jambi province (Euler et al. 2015). Despite oil palm’s ambivalent reputation, its cultivation has been an overall success in terms of poverty reduction (Qaim et al. 2020). However, more and more smallholder plantations are about to reach or already have reached the end of their economic lifecycle, which is said to occur with palms older than 25 years (Corley and Tinker 2016). Literature agrees that around that age the economic productive cycle of an oil palm comes to an end, mainly because of two reasons: (1) the palm’s height exceeds the 10-meter mark, which makes harvesting more difficult, thus increasing the harvesting costs; and (2) the palm’s fruit production decreases (Corley and Tinker 2016; Ismail and Mamat 2002; Ferwerda 1955). Replanting, i.e. the replacement of old palms with new ones, becomes necessary. According to Mongabay Environmental News (2020a), already two-fifths of Indonesian smallholder plantations have reached that state. Other estimates say, that 30% (Glenday and Paoli 2015) to 50% – up to 2.4 Mha (Ompusunggu and Gunawan 2018) of Indonesian smallholder plantations will need replanting within this decade. The replanting process offers the opportunity for smallholders to increase the productivity of their plantations, thus narrowing yield gaps to company-managed plantations (Lee et al. 2014; Woittiez et al. 2017). Higher productivity can also translate into higher incomes for smallholder households. Additionally, the replanting process could be used to redesign old plantations, making them more environmentally sustainable (Qaim et al. 2020). Besides these opportunities, replanting can represent a challenge to smallholders. Replanting is linked to high costs, and good management practices including pest control as well as correct fertilising become more crucial (Corley and Tinker 2016; 3 Nurfatriani et al. 2019; Goh 2005). While there are different methods of replanting (Corley and Tinker 2016), some may not be feasible for smallholders given high capital and information requirements. Currently, there is little research on smallholders’ replanting choices, the challenges they face and potential measures to support them. Yet, this knowledge is urgently needed to harness the opportunities offered by replanting large areas of oil palm in Indonesia and avoiding the exclusion of large parts of smallholder farmers from the oil palm sector in the future. In this review, we collect data from relevant studies, identify research gaps and offer policy recommendations concerning the difficulties and opportunities of smallholder-managed replanting. In order to provide an overview of the subject and identify crucial research gaps, the review follows five guiding questions: 1. How much research has already been done on the topic of replanting, and what thematic emphases can be identified? 2. Are there different types of smallholders, and does their replanting situation look different? 3. What are different replanting techniques, and which are suited for smallholders? 4. Which impeding factors can be identified for smallholders? 5. How could smallholders be supported? We will first conduct a systematic literature review to identify and evaluate relevant studies on the subject. In section 3, we will provide information on Indonesian smallholder types, which is important to adequately assess opportunities and risks of the smallholder replanting process. Section 4 will discuss the necessity for replanting, the techniques and their feasibility for smallholders. In section 5 we focus on opportunities and constraints of replanting for smallholders. In section 6 we discuss the guiding questions and highlight areas of importance for future research. Finally, in section 7, we will provide policy recommendations and name fields of research. 2. Methodology and systematic literature analysis 2.1 Data acquisition and data selection We used three databases for our systematic literature collection: ScienceDirect (SD), Web of Science (WOS), and Dimensions. According to Gusenbauer and Haddaway (2020) SD and WOS are suitable for systematic reviews. Dimensions was chosen because of its easy-to-handle surface and its elaborate search options. Gusenbauer and Haddaway (2020) consider Google Scholar unsuitable for primary 4 review searches. However, it is suitable as a supplementary source, which is why we used it to complement our systematic literature search. Furthermore, we used the snowballing method to expand the literature acquisition. We searched for the terms “oil”, “palm”, and “replanting” in either the title, the abstract or the keywords. Non-English publications were excluded. We also excluded publications from further analysis, if at least one of the following factors applied to the abstracts: (1) research questions are not clearly stated; (2) the methodology is either unclear or not transparent enough; (3) the results are unclear, trivial or not related to research questions; (4) an obvious research bias was detected. 2.2 Systematic literature analysis The search resulted in a total of 142 publications (see figure 1). 53 of the findings had to be excluded, because they were not relevant to oil palm replanting. Another 33 publications, mostly published in Malaysia, addressed the use of biomass that becomes available after replanting without discussing the replanting process itself. Another 18 studies were published on pest and disease control, 13 on environmental aspects of replanting, mainly about biodiversity loss during and shortly after land clearing. Six publications dealt with the replanting process. Two of them dealt with the optimization of the replanting process, two investigated replanting techniques, and two were about the optimal timing of replanting. None of them considered smallholder plantations. Only one study was found that investigated both, socioeconomic and environmental aspects of replanting. Figure 1: Number of publications on oil palm replanting and their research focus (SD, WOS, Dimensions) 53 33 18 18 13 6 1 0 10 20 30 40 50 60 Number of Publications Research Focus Not replanting related Use of Replanted Biomass Socioeconomic Aspects of Replanting Pest and Disease Control Environmental Aspects of Replanting Replanting Proccess (Timing, Optimization, Methods) Socioeconomic and Environmental Aspects of Replanting 5 Only 18 studies were related to socioeconomics aspects of replanting. These studies were mostly qualitative and based in Jambi province, Sumatra. 15 of them did not meet the quality criteria for this review. However, they partially contained important descriptive information. So, we used some of them as reference points where appropriate. The absence of high-quality studies on this subject clearly shows a lack of awareness of the importance of the replanting issue among the scientific community. The relevant studies from the systematic literature analysis, as well as the literature from the supplementary search are cited and analysed and the subsequent sections. A complete literature list from the systematic analysis is given in appendix A. The list is divided according to the foci of the studies. 3. A typology of Indonesian oil palm smallholders In order to assess how the replanting process will affect smallholders and how they can be supported, it is important to address the heterogeneity in this socioeconomic group. In this context, we distinguish four different types of smallholder oil palm farmers (see table 1). Scheme smallholders emerged first in the 1980s as part of the transmigration programme. They were usually given around 2 ha of land to cultivate oil palm and they received official land certificates (Gatto et al. 2015) – however, according to Indonesia’s definition of smallholders, farmers can have 25 ha (Glenday and Paoli 2015). These land certificates prove ownership of land and are crucial as a collateral for bank loans and other subsidies. Furthermore, the transmigrant smallholders were supported by companies that provided know-how and training and facilitated access to input materials like fertilizer and seedlings (Rival and Levang 2014; Glenday and Paoli 2015; Jelsma et al. 2017; McCarthy 2010). Similar schemes took over, however, with less influence by the government (Rist et al. 2010; Jelsma et al. 2017). For example, the KKPA, (Kredit Koperasi Primer Anggota: Credit for Cooperative Primary Members) in which also local farmers were included. In this scheme, smallholders entrust a company parts of their land for large-scale oil palm cultivation. In turn, the company establishes a plantation for the smallholders. However, the smallholders have to bear the costs for the establishment of these plantations for which they have to take out loans (Feintrenie et al. 2010; Rist et al. 2010). 6 Type of Smallholder Characteristics Scheme smallholders  Hold land certificates  Access to inputs, know-how and financing through company affiliation  Originally mainly transmigrants Former plasma scheme, now independent  Hold land certificates  Know-how and access to inputs established during company affiliation  Easier access to loans and funding  Often transmigrants Independent, with no prior experience  Often no official land certificates  Often sell FFB through middlemen  Limited access to financing, know-how and other resources  Often locals Farmer groups/ farmer-managed cooperatives  Coalition of independent farmers  Can provide financial aid  Simplify access to financing  Usually have legal documentation Table 1: Types of smallholders in Indonesia (based on Glenday and Paoli (2015)) Beginning with Indonesia’s decentralization policy in the mid-1990s, smallholders gradually started to cultivate oil palm independently, that is, with no formal affiliation to a company (Naylor et al. 2019). Additionally, former scheme smallholders started independent oil palm cultivation. They were able to keep their land certificates and draw on the established infrastructure (Euler et al. 2015). During that time, farmers with no prior experience also started oil palm cultivation. Some of them were migrants, many were locals (ibid.). Local farmers in particular faced quite a few challenges. One of the main drawbacks was that local farmers strongly relied on their customary laws (Indonesian: adat) with which they handle land access in their communities. This legal ambiguity led to the establishment of many smallholder plantations in state-declared forest areas, making these plantations de jure illegal. These plantations are formally located in contested land, making it nearly impossible for smallholders to attain official land certificates (Kunz et al. 2017; Riggs et al. 2016). To compensate for lacking support and diversify financing possibilities (Schoneveld et al. 2019; Prokopy et al. 2008), smallholders can get organized in farmer groups or farmer-managed cooperatives. Some of the cooperatives provide financial aid. Usually, groups and cooperatives help to distribute tools, farming inputs and provide training. Some of them even established replanting funds through member contributions (Glenday and Paoli 2015; Anwar and Sunesti 2021; Syarfi et al. 2019b). An evaluation of their success proves difficult due to lack of information. Being a member in a farmer group is also a pre-requisite to apply for the state replanting fund PSR (Peremajaan Sawit Rakyat, see section 5.1) (BPDPKS 2019a; Nurfatriani et al. 2019). 13 Another constraint are the knowledge gaps among smallholders (Kannan et al. 2017), again particularly among independent ones. While plasma smallholders can rely on their company’s know-how and possibly can exchange knowledge with other scheme smallholders, independent smallholders often do not have a similar network. Especially local independent smallholders usually have no prior experience with oil palm cultivation (Jelsma et al. 2017). According to Jelsma et al. (2017), independent smallholders appear to rely on informal farmer groups and on their input suppliers for information. 6. Discussion 6.1 The necessity for changes The shortcomings mentioned in the previous section will have negative impacts on smallholders’ ability to replant, but also affect their willingness to do so in the first place. Smallholders are usually not in the position to think about maximizing profits, but their decisions are made to satisfy and suffice (Cordaro and Desdoigts 2021). This “bounded rationality” (ibid.) may cause smallholders to inaccurately assess the process of replanting their plantations. Previous studies have shown that smallholders tend to be risk averse (Clough et al. 2016; Sarwosri and Mußhoff 2020). In the absence of proper knowledge about the replanting process and without access to affordable funding and quality input materials, risk averse farmers are likely to delay investments in replanting. Studies have already shown that replanting is connected to high investment costs and potentially severe income losses. Underplanting is suitable to buffer income losses, but only if correctly implemented; otherwise it can have negative effects on income and plantation productivity. The concern of not being able to cope with the additional burden of replanting seems to be prevalent among smallholders, causing a delay of the replanting process (Napitupulu et al. 2021). This effect could be further amplified by the recent increase in crude palm oil (CPO) prices (Zainal et al. 2018; markets.businessinsider.com 2022) that might compensate for decreasing plantation productivity. Eventually, however, economic productivity will decrease and the associated income losses will threaten smallholders’ livelihoods. In another scenario, smallholders might be tempted to burn their old stand to reduce the clearing costs, which account for half of the replanting costs (Yanita et al. 2021b). Although burning leads to significant carbon dioxide emissions and is illegal since 2015, it is still practiced (Hartmann et al. 2018; Silvianingsih et al. 2020; Goldstein et al. 2020). Smallholders could also be tempted to clear new land areas to establish new plantations, which would lead to additional land-use changes, including 14 deforestation, as well as land conflicts. Smallholders could also be forced to sell their land and thus lose their main income source. Farmer groups and cooperatives could be useful in the replanting process by providing financial, technical and material support. But farmer groups have been criticised for being inactive, and cooperatives for not being transparent enough. Groups and cooperatives often seem to be overwhelmed with their responsibilities (Yanita et al. 2021b; Syarfi et al. 2019a). Results by Jelsma et al. (2017) suggest that cooperatives and farmer groups only play a minor role as source for fertilizer, which makes it questionable how important they really are in terms of input material supply. Furthermore, there is no reliable evidence on how prevalent they are and how many members they have. State efforts to accelerate replanting and to support smallholders have had limited success so far. The replanting programme does not distribute enough money to smallholders and they failed to reach their own replanting goals each year. One of the main problems is that the programme automatically excludes those who need the funding the most: mainly local, independent smallholders without land certificates. They have the lowest yields, lower income and the most limited access to finances and quality seedlings. Finally, the programme only offers financial aid (BPDPKS 2020a), but smallholders additionally need training in best management practices to increase productivity and to be able to establish more sustainable oil palm plantations. 6.2 Recommendations Provide training, improve information flow Replanting requires timely and thorough planning. Pest control becomes more important, the right use of fertilizer more crucial to optimize palm growth and reduce farm expenditures. In the past, training offers have proven to increase smallholders’ knowledge on best management practices (Syahza et al. 2018; Mohd Ishak et al. 2020; Romero et al. 2019) as well as productivity of oil palm plantations (Elias et al. 2013). Proper training could support smallholders in their decision (Moser and Barrett 2006) to replant. The BPDPKS suggests that smallholders should diversify their income sources during replanting, for example by cultivating other cash crops (BPDPKS 2020b) or pond fish farming (Siswati et al. 2020). If done properly, the additional income can compensate the income losses from replanting. Naturally, 15 such undertaking would require new investments, new skills, and the opening of new markets, for which support, information and training would be necessary. Furthermore, smallholders need support regarding new plantation designs. Underplanting is better than replanting the whole plantation at once, but requires a higher level of management skills. Replanting offers the opportunity to make replanted plantations more environmentally sustainable, but it will also make plantation management more complex. Up to 2.4 Mha of smallholder plantations need replanting within this decade. This offers a unique chance to significantly improve oil palm’s sustainability, using enrichment planting with native trees (Gérard et al. 2017) or alley cropping (Slingerland et al. 2019). Once again, farmer groups and cooperatives can play an important role in providing and/or organizing training, information, and support. The little amount of data that exists, however, suggests that their potential is far from being exhausted. Push the use of high-quality seedlings and facilitate access to markets Information flow is crucial, but without practical support may prove useless. Smallholders, and particularly independent ones, do not have the same access to the oil palm supply chain as large-scale companies. With better seedlings, smallholders may be able to increase their oil fruit production by 30% (Jelsma et al. 2017). Therefore, policy makers should find ways to guarantee easy and affordable access to high-quality seedlings. For the initial phase of replanting, when the palms are unproductive, the BPDPKS suggests that smallholders should expand their income sources. For example, by using the felled trunks that can be used to produce brown sugar, or by selling them to the timber and furniture industry. Oil palm fronds could be used for craftsmanship (BPDPKS 2020b). Studies have shown how oil palm residues, like the trunks can be used as additional income sources (Fakhri et al. 2020; H`ng et al. 2011; Hambali and Rivai 2017). But again, political decision makers must facilitate access to these markets and establish an infrastructure in which the smallholders will be able to sell their goods. The same applies for other agricultural products that smallholder might produce as part of their income diversification. Clarify the ambiguous land tenure regulations and reform the PSR Indonesia has a long history of “legal and institutional pluralism” (Kunz et al. 2017) regarding land tenure regulations. The local use of customary laws was long tolerated (ibid.). Locals used them to regulate land access and land use in their communities – including establishment oil palm plantations. Many of these plantations are now located in state declared forests. The affected local smallholders have officially illegal plantations and cannot get land certificates. Without these, the smallholders are 16 excluded from bank loans. They must rely on informal loans at poor conditions, with direct consequences for their ability to save money and make investments. Therefore, clarifying ambiguous land tenure regulations is essential, not exclusively but also to support smallholder replanting. Indeed, this is a huge task and unlikely to occur anytime soon. In the meantime, the PSR needs to be reformed to support smallholder replanting. Since those who do not have land certificates are the ones that need support the most, access to PSR funding should not be conditional on land certificates. Furthermore, the funding amount should be increased. Currently it only covers half of the expenses at maximum, with limited possibilities for other financing sources. Lastly, the funding programme should expand its responsibilities and organize training, for example, regarding best management practices, income diversification, etc., and provide or at least facilitate access to materials, particularly highquality seedlings as well as machinery. 7. Conclusion and outlook In this review, we collected relevant data on smallholder replanting of oil palm plantations, and identified the challenges Indonesian smallholders will likely face before, during and after replanting. This revealed several crucial research gaps that should be addressed in future studies. We also derived several policy recommendations. Our review showed that up to 50% of smallholder oil palm plantations need to be replanted within this decade. When replanting becomes imminent, smallholders face several challenges, which past literature has not adequately addressed. The failure to engage in replanting will result in decreasing yields, entailing income losses and deteriorating livelihoods. As a consequence, some smallholders will likely be forced to sell their plantations, or will continue to work on plantations that are becoming less and less productive. Environmental deterioration is also likely, for example, if new land is cleared or old plantations are burned to save money. On the contrary, with proper support, smallholders’ risk aversion of replanting could be reduced, leading to increased income, ensuring their livelihoods, and increase environmental sustainability of oil palm plantations. However, this can only happen when smallholders receive substantial support. From a policy perspective, it is critical to address the issue of smallholder replanting, due to the expected environmental and socioeconomic implications, and to provide support measures. Smallholders need to receive training and information on why replanting is important, when and how it is done, and where they can get technical and financial support. Here, it becomes crucial that 17 sustainable replanting methods and measures are included in the training. It will be important to show the benefits of these sustainable measures to increase their acceptance among smallholders. Only then can the replanted oil palm plantations increase their environmental sustainability and ensure smallholders’ income. Research can help to identify specific problems smallholders face when replanting occurs and based on these insights design proper training concepts. Making such trainings accessible to smallholder farmers should be a priority for policy makers. One way to achieve easy access is to reform the PSR programme by including such training measures. Furthermore, the different smallholder types need to be acknowledged in the process. Particularly the perspective and needs of local independent smallholders, who are typically most deprived of access to resources and information, have to be taken into account. Policy makers should further facilitate access to materials, such as high-quality seedlings, funding schemes and new markets for income diversification. An efficient way to facilitate access to funding schemes is to reform the PSR, mainly by solving the issue of ambiguous land tenure regulations, making the application for the programme more appealing for smallholders. Research can help to determine how smallholders can be provided most effectively with access to supply chains and funding schemes, by analysing smallholder needs. Farmer groups and cooperatives can function as mediator between individual smallholders and policy makers. They can provide support for smallholders in many ways. However, their potential has not been utilized so far. It seems that they often are not trusted by many smallholders. They need to have tangible tasks assigned to them by policy makers. These tasks need to be transparently communicated. Future research has to gather data on their prevalence and the difficulties they face. They should receive support in organizing and optimizing themselves. Addressing the challenges associated with replanting can improve both socioeconomic and environmental conditions and help to transform the smallholder oil palm sector in Indonesia towards more sustainability. 18 References Aguilar, F. X., Hendrawan, D., Cai, Z., Roshetko, J. M., & Stallmann, J. (2021). Smallholder farmer resilience to water scarcity. Environment, Development and Sustainability. https://doi.org/10.1007/s10668-021-01545-3. Anwar, M. Z., & Sunesti, Y. (2021). Vulnerable people and sustainable livelihoods in the face of replanting phase in oil palm industry in Jambi - Sumatra. IOP Conference Series: Earth and Environmental Science, 716(1), 12112. https://doi.org/10.1088/1755-1315/716/1/012112. Ávila, R. A., Bayona, C., Ricón, Á., & Romero, H. M. (2014). Effect of replanting systems on populations of Strategus aloeus (L.) and Rhynchophorus palmarum (L.) associated with the oil palm OxG interspecific hybrid (Elaeis oleifera × Elaeis guineensis) in Southwestern Colombia. Agronomía Colombiana, 32(2), 224–231. https://doi.org/10.15446/agron.colomb.v32n2.43011. Bayona Rodríguez, C. J., Ávila Diazgranados, R. A., Rincón Numpaque, Á. H., & Romero Angulo, H. M. (2015). CO2 soil emission under different methods of oil palm replanting. Revista Facultad Nacional de Agronomía Medellín, 68(2), 7619–7625. https://doi.org/10.15446/rfnam.v68n2.50949. BPDPKS (2019a). BPDPKS in Brief. http://www.bpdp.or.id/en/bpdpks-in-brief. Accessed 8 February 2021. BPDPKS (2019b). Govt Makes Procedures Easier to Replant Oil Palm. http://www.bpdp.or.id/en/govtmakes-procedures-easier-to-replant-oil-palm. Accessed 8 February 2021. BPDPKS (2020a). Optimizing Opportunities, Achieve Superior Performance for Sustainable Indonesian Palm Oil: Sawit. BPDPKS (2020b). Potential Income Sources for Oil Palm Farmers During Replanting Seasons. http://www.bpdp.or.id/en/potential-income-sources-for-oil-palm-farmers-during-replantingseasons. Accessed 8 February 2021. Clough, Y., Krishna, V. V., Corre, M. D., Darras, K., Denmead, L. H., Meijide, A., et al. (2016). Land-use choices follow profitability at the expense of ecological functions in Indonesian smallholder landscapes. Nature communications, 7, 13137. https://doi.org/10.1038/ncomms13137. Cordaro, F., & Desdoigts, A. (2021). Bounded Rationality, Social Capital and Technology Adoption in Family Farming: Evidence from Cocoa-Tree Crops in Ivory Coast. Sustainability, 13(13), 7483. https://doi.org/10.3390/su13137483. Corley, R. H. V., & Tinker, P. B. (2016). The oil palm. Hoboken, NJ: John Wiley & Sons. Elias, A., Nohmi, M., Yasunobu, K., & Ishida, A. (2013). Effect of Agricultural Extension Program on Smallholders’ Farm Productivity: Evidence from Three Peasant Associations in the Highlands of Ethiopia. Journal of Agricultural Science, 5(8). https://doi.org/10.5539/jas.v5n8p163. Ernawati, H. D., Saputra, A., Alamsyah, Z., Napitupulu, D. M. T., Yanita, M., & Fauzia, G. (2021). Analysis of independent oil palm farming income after replanting in Muaro Jambi District. IOP 19 Conference Series: Earth and Environmental Science, 782(3), 32055. https://doi.org/10.1088/1755-1315/782/3/032055. Ernawati, H. D., Suandi, Yanita, M., & Qoirina, N. (2019). The impact of replanting oil palm plantations on the farming income of the Sungai Bahar community in Muaro Jambi Regency. IOP Conference Series: Earth and Environmental Science, 336, 12003. https://doi.org/10.1088/17551315/336/1/012003. Euler, M., Hoffmann, M. P., Fathoni, Z., & Schwarze, S. (2016). Exploring yield gaps in smallholder oil palm production systems in eastern Sumatra, Indonesia. Agricultural Systems, 146, 111–119. https://doi.org/10.1016/j.agsy.2016.04.007. Euler, M., Schwarze, S., Siregar, H., & Qaim, M. (2015). Oil palm expansion among smallholder farmers in Sumatra, Indonesia. EFForTs Discussion Paper Series, vol. 8. Göttingen: EFForTs Discussion Paper Series. Fakhri, F., Malik, A., Aldy, P., Elianora, E., & Zulkifli, Z. (2020). Pemberdayaan masyarakat melalui penerapan teknologi pengawetan dan pengolahan batang sawit untuk bahan baku mebel dekoratif. Unri Conference Series: Community Engagement, 2, 241–245. https://doi.org/10.31258/unricsce.2.241-245. Feintrenie, L., Chong, W. K., & Levang, P. (2010). Why do Farmers Prefer Oil Palm? Lessons Learnt from Bungo District, Indonesia. Small-scale Forestry, 9(3), 379–396. https://doi.org/10.1007/s11842-010-9122-2. Ferwerda, J. D. (1955). Questions relevant to replanting in oil palm cultivation. Wageningen: H. Veenman & Zonen. Gatto, M., Wollni, M., & Qaim, M. (2015). Oil palm boom and land-use dynamics in Indonesia: The role of policies and socioeconomic factors. Land Use Policy, 46, 292–303. https://doi.org/10.1016/j.landusepol.2015.03.001. Gérard, A., Wollni, M., Hölscher, D., Irawan, B., Sundawati, L., Teuscher, M., et al. (2017). Oil-palm yields in diversified plantations: Initial results from a biodiversity enrichment experiment in Sumatra, Indonesia. Agriculture, Ecosystems & Environment, 240, 253–260. https://doi.org/10.1016/j.agee.2017.02.026. Glenday, S., & Paoli, G. (2015). Overview of Indonesian Oil Palm Smallholder Farmers: A Typology of Organizational Models, Needs, and Investment Opportunities. Jakarta. Goh, K. J. (2005). Fertilzer Recommendation Systems for Oil Palm: Estimating the Fertilizer Rates. http://barformula.com/assets/pdf/research_paper15.pdf. Goldstein, J. E., Graham, L., Ansori, S., Vetrita, Y., Thomas, A., Applegate, G., et al. (2020). Beyond slash-and-burn: The roles of human activities, altered hydrology and fuels in peat fires in Central Kalimantan, Indonesia. Singapore Journal of Tropical Geography, 41(2), 190–208. https://doi.org/10.1111/sjtg.12319. Gusenbauer, M., & Haddaway, N. R. (2020). Which academic search systems are suitable for systematic reviews or meta-analyses? Evaluating retrieval qualities of Google Scholar, PubMed, 20 and 26 other resources. Research synthesis methods, 11(2), 181–217. https://doi.org/10.1002/jrsm.1378. H`ng, P. S., Wong, L. J., Chin, K. L., Tor, E. S., Tan, S. E., Tey, B. T., et al. (2011). Oil Palm (Elaeis guineensis) Trunk as a Resource of Starch and Other Sugars. Journal of Applied Sciences, 11(16), 3053–3057. https://doi.org/10.3923/jas.2011.3053.3057. Hambali, E., & Rivai, M. (2017). The Potential of Palm Oil Waste Biomass in Indonesia in 2020 and 2030. IOP Conference Series: Earth and Environmental Science, 65, 12050. https://doi.org/10.1088/1755-1315/65/1/012050. Hartmann, F., Merten, J., Fink, M., & Faust, H. (2018). Indonesia's Fire Crisis 2015: A Twofold Perturbation on the Ground. Pacific Geographies(49), 4–11. https://doi.org/10.23791/490411. Herdiansyah, H., Negoro, H. A., Rusdayanti, N., & Shara, S. (2020). Palm oil plantation and cultivation: Prosperity and productivity of smallholders. Open Agriculture, 5(1), 617–630. https://doi.org/10.1515/opag-2020-0063. InfoSAWIT.TV (2021). Meningkatkan Peranan Petani Sawit Rakyat Melalui Subsidi Replanting dan Subsidi Sarpras. https://www.youtube.com/results?search_query=infosawit. Accessed 31 May 2021. Ismail, A., & Mamat, M. N. (2002). The Optimal Age of Oil Palm Replanting. Oil Palm Industry Economic Journal, 2(1), 11–18. Jelsma, I., Schoneveld, G. C., Zoomers, A., & van Westen, A. (2017). Unpacking Indonesia’s independent oil palm smallholders: An actor-disaggregated approach to identifying environmental and social performance challenges. Land Use Policy, 69, 281–297. https://doi.org/10.1016/j.landusepol.2017.08.012. Kannan, P., Peng, T. S., Ahmad, S. M., Seman, I. A., Rahman, A. K. b., Hashim, K., et al. (2017). Knowledge Assessment of Basal Stem Rot Disease of Oil Palm and its Control Practices among Recipients of Replanting Assistance Scheme in Malaysia. International Journal of Agricultural Research, 12(2), 73–81. https://doi.org/10.3923/ijar.2017.73.81. Krishna, V., Euler, M., Siregar, H., & Qaim, M. (2017). Differential livelihood impacts of oil palm expansion in Indonesia. Agricultural Economics, 48(5), 639–653. https://doi.org/10.1111/agec.12363. Kubitza, C. A. (2018). Land-use change and rural development in Indonesia: Economic, institutional and demographic aspects of deforestation and oil palm expansion. Göttingen. Kunz, Y., Steinebach, S., Dittrich, C., Hauser-Schäublin, B., Rosyani, I., Soetarto, E., et al. (2017). ‘The fridge in the forest’: Historical trajectories of land tenure regulations fostering landscape transformation in Jambi Province, Sumatra, Indonesia. Forest Policy and Economics, 81, 1–9. https://doi.org/10.1016/j.forpol.2017.04.005. Kushairi, A., Loh, S. K., Azman, I., Hishamuddin, E., Ong-Abdullah, M., Izuddin, Z. B., et al. (2018). Oil Palm Economic Performance in Malaysia and R&D Progress in 2017. Journal of Oil Palm Research, 30(2), 163–195. https://doi.org/10.21894/jopr.2018.0030. 21 Lee, J. S. H., Ghazoul, J., Obidzinski, K., & Koh, L. P. (2014). Oil palm smallholder yields and incomes constrained by harvesting practices and type of smallholder management in Indonesia. Agronomy for Sustainable Development, 34(2), 501–513. https://doi.org/10.1007/s13593-0130159-4. markets.businessinsider.com (2022). Palm Oil PRICE Today | Palm Oil Spot Price Chart | Live Price of Palm Oil per Ounce | Markets Insider. https://markets.businessinsider.com/commodities/palmoil-price. Accessed 15 March 2022. McCarthy, J. (2010). Processes of inclusion and adverse incorporation: oil palm and agrarian change in Sumatra, Indonesia. The Journal of peasant studies, 37(4), 821–850. https://doi.org/10.1080/03066150.2010.512460. Mehraban, N., Kubitza, C., Alamsyah, Z., & Qaim, M. (2021). Oil palm cultivation, household welfare, and exposure to economic risk in the Indonesian small farm sector. Journal of Agricultural Economics. https://doi.org/10.1111/1477-9552.12433. Mohd Ishak, S., Aman, Z., & Mat Taib, H. (2020). AN EVALUATION ON OUTCOME OF OIL PALM REPLANTING SCHEME (TSSPK) AND NEW PLANTING SCHEME (TBSPK). International Journal of Modern Trends in Social Sciences, 3(14), 129–148. https://doi.org/10.35631/ijmtss.3140011. Mongabay Environmental News (2020a). Indonesia aims for sustainability certification for oil palm smallholders. https://news.mongabay.com/2020/04/indonesia-aims-for-sustainabilitycertification-for-oil-palm-smallholders/. Accessed 13 March 2022. Mongabay Environmental News (2020b). Indonesia’s biofuel bid threatens more deforestation for oil palm plantations. https://news.mongabay.com/2020/12/indonesia-biofuel-deforestation-oilpalm-plantation-b30/. Accessed 14 March 2022. Moser, C. M., & Barrett, C. B. (2006). The complex dynamics of smallholder technology adoption: the case of SRI in Madagascar. Agricultural Economics, 35(3), 373–388. https://doi.org/10.1111/j.1574-0862.2006.00169.x. Napitupulu, D., Alamsyah, Z., Ernawati, H. D., Yanita, M., Elwamendri, E., & Fauzia, G. (2021). Impact of oil palm plantation on household welfare in Jambi Province. IOP Conference Series: Earth and Environmental Science, 782(3), 32056. https://doi.org/10.1088/1755-1315/782/3/032056. Naylor, R. L., Higgins, M. M., Edwards, R. B., & Falcon, W. P. (2019). Decentralization and the environment: Assessing smallholder oil palm development in Indonesia. Ambio, 48(10), 1195– 1208. https://doi.org/10.1007/s13280-018-1135-7. Novra, A., Fatati, & Adriani (2021). Preparing Households for the Oil Palm Replanting Program: Is an Empowerment Program Needed? Journal of Southwest Jiaotong University, 56(3), 179–195. https://doi.org/10.35741/issn.0258-2724.56.3.15. Nurfatriani, F., Ramawati, Sari, G. K., & Komarudin, H. (2019). Optimization of Crude Palm Oil Fund to Support Smallholder Oil Palm Replanting in Reducing Deforestation in Indonesia. Sustainability, 11(18), 4914. https://doi.org/10.3390/su11184914. 22 Ompusunggu, M., & Gunawan, A. (2018). Independent oil palm smallholders neglected in sustainability efforts. The Jakarta Post. https://www.thejakartapost.com/news/2018/04/05/independent-oil-palm-smallholdersneglected-in-sustainabilityeffort.html. Accessed 11 May 2021. Ooi, L.-H., & Heriansyah, H. (2005). Palm Pulverisation in Sustainable Oil Palm Replanting. Plant Production Science, 8(3), 345–348. https://doi.org/10.1626/pps.8.345. Prokopy, L. S., Floress, K., Klotthor-Weinkauf, D., & Baumgart-Getz, A. (2008). Determinants of agricultural best management practice adoption: Evidence from the literature. Journal of Soil and Water Conservation, 63(5), 300–311. https://doi.org/10.2489/jswc.63.5.300. Qaim, M., Sibhatu, K. T., Siregar, H., & Grass, I. (2020). Environmental, Economic, and Social Consequences of the Oil Palm Boom. Annual Review of Resource Economics, 12(1), 321–344. https://doi.org/10.1146/annurev-resource-110119-024922. Ramadhana, A., Ahmed, F., & Thingrak, S. (2021). The Impact of Oil Palm Farming on Household Income and Expenditure in Indonesia. The Journal of Asian Finance, Economics and Business, 8(4), 539–547. https://doi.org/10.13106/JAFEB.2021.VOL8.NO4.0539. Riggs, R. A., Sayer, J., Margules, C., Boedhihartono, A. K., Langston, J. D., & Sutanto, H. (2016). Forest tenure and conflict in Indonesia: Contested rights in Rempek Village, Lombok. Land Use Policy, 57, 241–249. https://doi.org/10.1016/j.landusepol.2016.06.002. Rist, L., Feintrenie, L., & Levang, P. (2010). The livelihood impacts of oil palm: smallholders in Indonesia. Biodiversity and Conservation, 19(4), 1009–1024. https://doi.org/10.1007/s10531010-9815-z. Rival, A., & Levang, P. (2014). Palms of controversies: Oil palm and development challenges. Bogor. Romero, M., Wollni, M., Rudolf, K., Asnawi, R., & Irawan, B. (2019). Promoting biodiversity enrichment in smallholder oil palm monocultures – Experimental evidence from Indonesia. World Development, 124, 104638. https://doi.org/10.1016/j.worlddev.2019.104638. Sahara, Haryadi, & N., K. (2017). Smallholder finance in the palm oil sector: Analyzing the gaps between existing credit schemes and smallholder realities: Center for International Forestry Research (CIFOR). Sarwosri, A. W., & Mußhoff, O. (2020). Are Risk Attitudes and Time Preferences Crucial Factors for Crop Diversification by Smallholder Farmers? Journal of International Development, 32(6), 922– 942. https://doi.org/10.1002/jid.3483. Schleicher, T., Hilbert, I., Manhart, A., Hennenberg, K., Ernah, Shella Vidya, et al. (2019). Production of Palm Oil in Indonesia: Country-focused commodity analysis in the context of the Bio-Macht project. Freiburg. Schoneveld, G. C., Ekowati, D., Andrianto, A., & van der Haar, S. (2019). Corrigendum: Modeling peatand forestland conversion by oil palm smallholders in Indonesian Borneo (2019 Environ. Res. Lett.14 014006). Environmental Research Letters, 14(11), 119501. https://doi.org/10.1088/17489326/ab4870.