Palm oil sustainability partnership: implementation and connection with farmers income

¹ Agribusiness Department, Faculty of Agriculture, University of Jambi, Jalan Raya Jambi-Muara Bulian Km 15, Jambi Indonesia
² Agribusiness Department, Faculty of Agriculture, University of Jambi, Jalan Raya Jambi-Muara Bulian Km 15, Jambi Indonesia
³ Agribusiness Department, Faculty of Agriculture, University of Jambi, Jalan Raya Jambi-Muara Bulian Km 15, Jambi Indonesia

Abstract

Partnership is a business strategy that performed by two or more parties in a certain period to obtain the benefits together with the principle of mutual need and mutual rearing. The study aims to observe and assess the implementation of the oil palm agribusiness partnerships and analyze the level of farmers’ income. This research used a survey method. Descriptive analysis is used in data analysis, to provide an overview of the implementation of partnerships applied by oil palm plantation companies in Jambi Province. The results showed that agribusiness partnerships that implemented by the palm oil company basically has managed to create independent farmers who can canalize the aspirations of farmers, both in KKPA and PIR Trans pattern. Empirically, the maximum value and benefit aspects of process management partnerships as an indicator of the level of performance partnerships oil palm plantation companies in Jambi Province is quite high, has reached 82.5%. But these facts have not been fully supported by a partnership of cooperation actors, in the sense that the level of achievement of the implementation aspects of the value of partnership firm activities and performance of oil palm plantations has reached approximately 71%