Management model of nucleus estate smallholder for sustainable palm oil (Case Study In Pt. Perkebunan Nusantara Vii, Muara Enim District, South Sumatra)

Abstract

A primary issue in the management of oil palm plantations own by both nucleus smallholder and independent farmers currently is still sectoral and not based on the consideration of multi-sectoral and multi-dimensional. This causes multiple losses such as the loss of income’s farmers, environmental deterioration, and social problem. The objective of this research is to design a management model for sustainable nucleus smallholder of oil palm which meet aspects of biophysical (planet), economic (profit), and social (people). This research was conducted at PT. Perkebunan Nusantara VII, Muara Enim District, South Sumatra Province, where located between 4°-6° south longitude and 104°-106° east latitude, in July 2011 to September 2012. The result of this analysis indicate that soil of land use of oil palm plantations contain C-org less than the forest soils, especially in the surface layer (0-20 cm). This indicates the occurrence of land degradation at the sites caused by erosion mostly at the surface layer of soil. Sustainability analysis of oil palm plantation showed that the economic dimension has the highest sustainability index of 88.97, followed by social index of 81.02, technological index of 69.17, ecological index of 68.21, and the the lowest is 30.71 for institutions index. Result of this analysis was also revealed that sustainability of plantation and motivation of employees are determined by the company support i.e. PT. Nusantara Plantation VII. Based on the multi-dimensional index of sustainable nucleus-plasma oil palm plantation was 67.67 meaning that is quite continuous. Model development shows that the implementation of soil conservation brings a consequences of increasing outcome every year. In the year 2010 was allocated IDR 1,801,271,159.73 and predicted to remain increase to IDR 4,384,575,338.50 in year 2040. If farmers follow the fertilization protocols used by nucleus smallholder, it will increase profits to IDR 7,446,289, - per hectare.