Palm Oil Seen as a Blessing, Not a Curse, by West Kalimantan’s Independent Farmers

 

Palm oil is not inherently evil. Photo credit: Tantoya.

By Masri Sareb Putra

Introduction

In the equatorial heart of West Kalimantan, Indonesia, palm oil cultivation is transforming the livelihoods of independent smallholder farmers, known locally as petani mandiri. Far from the corporate-dominated narratives prevalent in global discussions, these farmers see palm oil as a pillar of economic stability, social mobility, and regional self-reliance.

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In districts like Sekadau and Sanggau, under the relentless Bornean sun, farmers such as Tanto Yakobus and Fidelis cultivate modest plots that yield more than just fruit—they cultivate hope. This report explores the socio-economic benefits of palm oil for smallholders, addresses the environmental and policy challenges they face, and outlines a framework for sustainable, equitable development rooted in local perspectives and expert insight.

Economic Empowerment Through Palm Oil

For smallholder farmers in West Kalimantan, palm oil offers one of the few reliable paths to financial security in a region where economic opportunities are scarce. Tanto Yakobus, a farmer from Sekadau, manages several hectares planted more than a decade ago. He explains, “One hectare, if properly maintained, can yield about 1.5 tons of fresh fruit bunches (FFB) per harvest. At Rp2,800 to Rp3,000 per kilo, that’s enough to live with dignity—school fees, a decent house, healthcare. It may be modest by urban standards, but it’s life-changing in the countryside.”

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Fidelis, a Dayak farmer from Sanggau, contrasts palm oil with other crops: “Rice is seasonal, rubber prices are volatile, and cocoa is unpredictable. Palm oil, when managed properly, delivers steady income year-round.” Data from the Indonesian Palm Oil Association (GAPKI) backs this up: smallholders managing around 25 hectares in West Kalimantan can earn up to Rp46 million per month during peak harvests—far more than alternatives like rubber (Rp12 million) or seasonal rice (often below Rp3 million annually).

Socio-Economic Impact

Beyond income, palm oil contributes to tangible improvements in quality of life. Farmers report using their earnings to send children to school, build permanent homes, and access healthcare—milestones that were previously out of reach. For instance, Tanto’s plantation has enabled his two children to attend secondary school in Sekadau, a significant achievement for a family that once lived off subsistence farming.

Fidelis shares how his income allowed him to replace a thatched-roof house with a concrete structure, significantly improving his family’s well-being. This economic uplift ripples through communities. Smallholder cooperatives in places like Sanggau pool resources to negotiate better prices with mills, increasing incomes across the board.

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According to the West Kalimantan Agriculture Agency, as of 2023, smallholders manage about 40% of the province’s 1.2 million hectares of oil palm plantations. Their activities contribute meaningfully to the rural economy through local spending and job creation—especially in harvesting, transport, and services.

Environmental Realities and Responsibilities

Global media often portrays palm oil as a major driver of deforestation, orangutan habitat loss, and carbon emissions. While these concerns are valid, smallholder farmers argue that such narratives oversimplify a far more nuanced reality.

Tanto Yakobus explains, “The West sees satellite images of cleared forest and sounds the alarm. They don’t see that my land used to be abandoned scrub—now it feeds my family.” Like many smallholder plots, his plantation was established on degraded or already-cleared land, not virgin rainforest.

Fidelis adds, “Palm oil isn’t inherently destructive. The problem lies with large corporations that break the rules, clear forests, and displace communities.” He supports the Roundtable on Sustainable Palm Oil (RSPO) standards, which include commitments to no-deforestation and biodiversity protection. In West Kalimantan, RSPO-certified smallholders—currently only 10%—report higher yields (up to 2 tons/ha per cycle) and earn 5–10% more per kilogram due to premium pricing, encouraging better practices.

Expert Insight on Sustainability

Ir. Petrus Gunarso, Ph.D., an environmental scientist and author of three books on sustainable palm oil, warns against unchecked corporate expansion. “The era of massive land concessions must end,” he states. “Any future expansion should empower smallholders on their ancestral lands, keeping profits within the community.”

Gunarso’s research shows that smallholder plots—typically under 5 hectares—have a smaller environmental footprint than corporate plantations. They often use agroforestry practices and avoid heavy machinery. He advocates for training programs to teach sustainable techniques, such as intercropping with native species and using organic fertilizers, which enhance soil health and reduce chemical dependency.

A 2022 study in Sanggau found that intercropped palm plots increased biodiversity by 15% compared to monocultures while maintaining yield levels. These practices prove that economic viability and environmental responsibility are not mutually exclusive.

Policy Opportunities and Challenges

Indonesia’s new president, Prabowo Subianto, has prioritized palm oil development as a strategy for food and economic security. His administration seeks to expand cultivation and diversify palm-based products—such as biofuels and oleochemicals. Yet, experts warn that if corporate interests dominate, the expansion could repeat past mistakes.

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“Growth must benefit smallholders, not corporations,” Gunarso insists. “The profits must stay in the villages—not flow to Jakarta or abroad.”

Key policy priorities include:

• Securing Land Rights: Many smallholders lack formal land titles, limiting their access to credit and sustainability certifications. The 2024 Land Reform Program aims to register 500,000 hectares of smallholder land in West Kalimantan, easing land disputes and enabling greater autonomy.

• Affordable Certification: RSPO certification costs (Rp10–15 million per farmer) remain out of reach for most. Government subsidies or cooperative certification models—already piloted in Sekadau—have helped certified farmers increase income by 12%.

• Improved Market Access: Direct supply chains to mills and exporters could raise smallholder earnings by 15–20%, according to a 2023 GAPKI report, by eliminating middlemen and ensuring fairer pricing.

Balancing Growth With Equity

The challenge is to ensure that palm oil expansion does not mirror past patterns of land grabbing and ecological damage. The West Kalimantan government’s 2025 Sustainable Palm Oil Action Plan sets a clear direction: limit corporate expansion to 20% of new plantations while reserving 80% for smallholders.

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This reorientation could empower 50,000 additional farmers by 2030, according to provincial projections, all while preserving forest cover through stricter enforcement of no-deforestation policies.

A Vision for Democratized Palm Oil

The independent farmers of West Kalimantan envision a future where palm oil is equitable, sustainable, and community-led. As Fidelis puts it, “Palm oil must be a blessing, not a curse, not because it’s perfect, but because we choose to make it so.”

Realizing this vision requires a shift in mindset—from seeing palm oil solely as a global commodity to embracing it as a local lifeline. A sustainable path forward includes:

• Community-Led Governance: Empower cooperatives to oversee land use, sustainability standards, and economic development, ensuring that decisions reflect local priorities.

• Technology and Training: Provide smallholders with access to tools like drones for yield monitoring and training in eco-friendly practices to boost productivity and reduce environmental harm.

• Global-Local Dialogue: Create platforms that showcase smallholder success stories to challenge one-sided narratives and foster mutual understanding between international observers and local communities.

Conclusion

Long vilified, palm oil is a lifeline for independent farmers in West Kalimantan—offering economic stability, social progress, and a model for locally-rooted resilience. By focusing on smallholder empowerment, sustainable practices, and equitable policies, Indonesia has the opportunity to rewrite the palm oil story.

In the groves of Sekadau and Sanggau, where farmers like Tanto and Fidelis tend their land with dedication and care, a new narrative is emerging—one where palm oil is not a curse but a carefully cultivated blessing, grounded in community, sustainability, and hope. *)