Bridging the Living Income Gap for Cocoa and Palm Oil Farmers in Rural Post-Disaster Aceh

¹ Master of Management Study Program, Faculty of Economics, Abulyatama University, Indonesia
² Management Program, Faculty of Economics and Business, Syiah Kuala University, Indonesia

^* Corresponding author: syafruddin.chan@usk.ac.id

Abstract

This study examines how cocoa and oil palm farmers in Aceh Timur and Aceh Tamiang, two disaster-prone districts in Indonesia’s westernmost province respond to economic and environmental vulnerabilities through adaptive livelihood strategies. Using a mixed-methods approach combining household surveys and Focus Group Discussions (FGDs), the research analyses income gaps, expenditure sufficiency, and strategic responses among smallholder farmers. Findings reveal that a significant portion of households operate under financial stress even in stable conditions, with 41% unable to meet basic nutritional and non-food needs. The economic fragility is compounded by exposure to recurring floods and commodity price volatility. Despite these challenges, farmers are not passive recipients of risk. Adaptive strategies such as intercropping, scion sales, and certification-based partnerships (RSPO for palm oil, Rainforest Alliance for cocoa) emerged as viable solutions to boost household income and enhance resilience. RSPO-certified palm oil, when integrated into underutilized mills via cooperatives, could raise income by 15–20% and reduce the share of high-deficit households. Similarly, cocoa farmers practicing intercropping and seedling sales reported projected annual income gains of IDR 30 million, with certification adding a 10–15% price premium. The study applies an integrated analytical framework combining the Sustainable Livelihoods Framework and Economic Vulnerability and Resilience Theory, emphasizing household agency in managing risk. By linking economic strategies to disaster preparedness, this research contributes to a deeper understanding of how rural households can serve as key agents of resilience in ecologically fragile regions. Policy implications include the need for localized certification-led support systems and cooperative-based development models.