Opportunities for Increasing Productivity & Profitability of Oil Palm Smallholder Farmers in Central Kalimantan

The report analyzes four smallholder oil palm models in Central Kalimantan: cooperative plasma, company-managed plasma, individual partnership, and independent smallholders. It finds that collective and company-managed models significantly outperform individual and independent models in terms of yield, profit, and risk management. The cooperative model is highlighted as the most beneficial for sustainable livelihoods, while independent smallholders face systemic barriers in finance, supply chains, and market access.

• The cooperative plasma model demonstrated the highest efficiency and productivity among the sampled models, achieving 95% of its potential yield with a production of 20 Tonnes/Ha/Yr.
• The company-managed plasma model is the most effective for profitability, achieving an 86% profit margin due to high yields (18 tonnes/Ha) and low upkeep costs, though it provides lower long-term financial benefits to farmers compared to the cooperative model.
• The individual partnership model is the least productive and most financially precarious, achieving only 52.4% of its potential yield and producing the lowest profits per hectare (3,762,121 IDR/ Ha/ year).
• Independent smallholders are significantly less productive than partnership farmers, with yields up to 50% lower, and face high exposure to legal, supply, production, and market risks.
• Independent smallholders face systemic barriers including limited access to bank loans, reliance on low-quality seedlings from intermediaries, and poor integration with CPO mills, which weakens their bargaining power.
• The cooperative model is the most effective at risk mitigation, utilizing a reserve fund to guarantee a minimum monthly income of IDR 2.5 million for members, protecting them against price fluctuations.
• Transparency, accountability, and management capacity—supported by company partners and bank audits—are identified as the primary success factors for effective cooperative models.
• There is a significant gap in fertilizer efficiency; individual partnership farmers use 25% more than recommended inputs without achieving high yields, whereas company-managed models achieve high yields using only 37% of recommended fertilizer.

APA

MP, D., Dehen.,SP.,MP, D. A., & Barbara,SP.,Msi, D. (n.d.). Opportunities for Increasing Productivity & Profitability of Oil Palm Smallholder Farmers in Central Kalimantan. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2015/04/Opportunities-for-Increasing-Productivity-Profitability-of-Oil-Palm-Smallholder-Farmers-in-Central-Kalimantan-Full-Report1.pdf

Chicago

MP, Dr.Ir.Suharno,, Dr.Yuprin Abel Dehen.,SP.,MP, and Dr.Betrixia Barbara,SP.,Msi. Opportunities for Increasing Productivity & Profitability of Oil Palm Smallholder Farmers in Central Kalimantan. Climate Policy Initiative, n.d. https://www.climatepolicyinitiative.org/wp-content/uploads/2015/04/Opportunities-for-Increasing-Productivity-Profitability-of-Oil-Palm-Smallholder-Farmers-in-Central-Kalimantan-Full-Report1.pdf.

Wikipedia

{{cite report |last1=MP |first1=Dr.Ir.Suharno, |last2=Dehen.,SP.,MP |first2=Dr.Yuprin Abel |last3=Barbara,SP.,Msi |first3=Dr.Betrixia |title=Opportunities for Increasing Productivity & Profitability of Oil Palm Smallholder Farmers in Central Kalimantan |publisher=Climate Policy Initiative |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2015/04/Opportunities-for-Increasing-Productivity-Profitability-of-Oil-Palm-Smallholder-Farmers-in-Central-Kalimantan-Full-Report1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mpndopportunities, author = {MP, Dr.Ir.Suharno, and Dehen.,SP.,MP, Dr.Yuprin Abel and Barbara,SP.,Msi, Dr.Betrixia}, title = {{Opportunities for Increasing Productivity \& Profitability of Oil Palm Smallholder Farmers in Central Kalimantan}}, institution = {Climate Policy Initiative}, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2015/04/Opportunities-for-Increasing-Productivity-Profitability-of-Oil-Palm-Smallholder-Farmers-in-Central-Kalimantan-Full-Report1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }