Building Palm Economy country2

Building Palm Economy country2

Coconut oil which has various uses for both food and non food industry, the prospect of development is not only associated with the growth of vegetable oils in the country and the world, but also related to the development of other vegetable oil sources, such as soybean, rape seed and sunflower. In terms of competitiveness,

CPO (Crude Palm Oil) is a major commodity vegetable oil palm plantation sector in Indonesia which is the second largest producer after Malaysia. Development of oil palm acreage tananam people singnifikan experienced substantial growth from year to year.

FAO in its meeting in Rome a few years ago also has received a proposal from the Malaysian oil palm plantations in order to be accepted as a forest crop because their functions are complementary with the function of forest plants.

World vegetable oil consumption always exceeds its production so that the tendency of world vegetable oil prices will always go up. Oil source world: production and consumption of vegetable oils during the period 2008-2012 an estimated 132 million tonnes, while production is only 108 million tons, so it needs a new supply of 24 million tonnes.

Palm oil has better prospects than other vegetable oils in the future due to several factors, among others:

1.Produktivitas palm oil is quite high compared to other vegetable oils.

2.Sebagai annual crops, palm oil is more easily adapt to its environment compared with crops such as soybeans and sunflowers.

3.Ditinjau of health, palm oil has the advantages when compared with other vegetable oils because they contain beta-carotene as pro-vitamin A and vitamin E

4.Selain that palm oil can be used as raw material for oleochemical industry which has the advantages compared to products made from raw oil industry. Palm oil is a source of raw material that can be fixed (renewable). Whereas petroleum is expected to be depleted within the next few years.

5.Produk oleochemicals are made from raw palm oil is safer, because the nature of edible and environmentally friendly and easily broken down (bio-degradable)

Oil / vegetable fat that is consumed by the world community is soybean oil, rape seed oil, cottonseed oil, sunflower seed oil, coconut oil, corn oil, sesame oil, olive oil and palm oil. The increasing demand for vegetable oils in line with population growth and economic growth.

Therefore, the productivity of crops with higher oil a hope to meet market demand in the future. State nabatinya oil consumption will continue to rise, among others, are China, Japan, America and Europe, while for domestic consumption is also growing quite rapidly with products made from raw palm oil such as detergents, soaps, cosmetics, medicines and margarine . This macro indicates that the outlook for oil palm agribusiness development and marketing of CPO and its derivatives are very good future and potential.

05 03

PALM OIL, ITS IMPACT ON THE ACCELERATION OF REGIONAL ECONOMIC DEVELOPMENT IN RURAL RIAU

Al-Khamis, 8 Jumada al-Ula 1430 H - 22:00:41

by: Prof. Dr. Almasdi Syahza, SE., MP

The development of the agricultural sector in the Riau area to date is quantitatively quite encouraging, with average growth over the last five years at 6.79%. One sub-sector that contributes to high opinion

A. Preliminary

The quantitative implementation of regional development in Riau has achieved fairly good results as seen from the level of economic growth. During the period 2002-2007 economic growth of 8.40% of Riau, high growth was sustained by the agricultural sector especially the plantation subsector.

In 1996 the agricultural sector as the economic backbone of the rural people of Riau only grew by 2% while the industrial sector by 14 percent drove. But in 2002 the agricultural sector has improved with the growth rate of 6.06 percent, 12.47 percent while the industrial sector. During the period 2002-2007 the agricultural sector is quite good perumbuhan that is equal to 6.79. The high growth in the agricultural sector because it is supported by export-oriented plantation crops like oil palm, rubber, coconut and so on (Almasdi Syahza, 2008).

PALM OIL, ITS IMPACT ON THE ACCELERATION OF ECONOMIC DEVELOPMENT IN RURAL REGIONS RIAU by prof. Dr. Almasdi Syahza, SE., MP

High economic growth does not always reflect the distribution of income in a fair and equitable, because of high economic growth is only enjoyed by a small group of people, such as urban, rural or suburban communities while getting small portions and left. The gap in this area further exacerbated because of the disparities in development among sectors, especially between the agricultural sector (rural economic base) and non-agricultural (urban economics).

PALM OIL, ITS IMPACT ON THE ACCELERATION OF ECONOMIC DEVELOPMENT IN RURAL REGIONS RIAU by prof. Dr. Almasdi Syahza, SE., MP

The development of the agricultural sector in the Riau area to date is quantitatively quite encouraging, with average growth over the last five years at 6.79%. But the level of farm income has not increased as expected. Therefore, the government launched the development of Riau Riau through eradication programs kemisninan, ignorance and infrastructure development (better known as program K2I). Any development carried out in Riau should refer to the Programme K2I.

Because local development is largely determined by the potential possessed by an area, then the policy made by the local government must refer to the potential areas likely to be developed, especially the plantation sector (oil palm, rubber, and coconut). To date palm is a plant society belle of Riau.

PALM OIL, ITS IMPACT ON THE ACCELERATION OF ECONOMIC DEVELOPMENT IN RURAL REGIONS RIAU by prof. Dr. Almasdi Syahza, SE., MP

There are several reasons why the Government of Riau put palm oil as primary commodities, among other things: First, in terms of physical and environmental conditions allow for the development of Riau area of ​​oil palm plantations.Conditions in the area is relatively flat Riau facilitate the management and can reduce production costs; Second, conditions that allow the soil for planting oil palm produce production is higher than other areas; Third, in terms of marketing the products of Riau has the advantage, because of its strategic location withinternational markets namely Singapore; Fourth, Riau Indonesia is an area of ​​development co-operation with the opening of the Western part of Indonesia Malaysia Singapore Growth Triangle (IMS-GT) and the Indonesia Malaysia Thailand Growth Triangle (IMT-GT), then open a more lucrative market opportunities, and the fifth , based on the results achieved show that coconut oil provides a higher income to farmers compared to other plantation crops (Almasdi Syahza, 2002).

PALM OIL, ITS IMPACT ON THE ACCELERATION OF ECONOMIC DEVELOPMENT IN RURAL REGIONS RIAU by prof. Dr. Almasdi Syahza, SE., MP

Extensive development of oil palm plantation in Riau during the period 2002-2006 of 3.9% per year, ie in 2002 covering an area of ​​1,312,661 ha to 1,530,150 ha in 2006. While the broad development of rubber and coconut plantations in the same period have fallen coconuts and rubber -3.25% 1.67%. This shows the occurrence of land-uses of rubber and coconut plantations into oil palm plantations.

PALM OIL, ITS IMPACT ON THE ACCELERATION OF ECONOMIC DEVELOPMENT IN RURAL REGIONS RIAU by prof. Dr. Almasdi Syahza, SE., MP

This paper attempts to identify the impacts of oil palm plantation development to accelerate economic development in rural communities. Oil palm plantation development activities are expected to raise the community's economy, especially those who livelihood from agriculture. The impact of these developments will be seen from several indicators, among others:

PALM OIL, ITS IMPACT ON THE ACCELERATION OF ECONOMIC DEVELOPMENT IN RURAL REGIONS RIAU by prof. Dr. Almasdi Syahza, SE., MP

1. Figures created economic multiplier effect of oil palm plantation development activities in rural

2. Index welfare of rural communities as a result of oil palm plantation development.

3. Index of economic disparities between classes and between regions

B. Economic Multiplier Effect

The results Almasdi Syahza (2005), development PALM OIL, ITS IMPACT ON THE ACCELERATION OF ECONOMIC DEVELOPMENT IN RURAL REGIONS RIAU by prof. Dr. Almasdi Syahza, SE., MP

Impact on communities around the development of oil palm plantations, is reflected in the creation of employment opportunities for people Tempatan.

So is the emergence of business opportunities, such as: opening a food and beverage kiosks, transportation services, home industries, Erta banking services.All this eventually led to the emergence of traditional markets in residential areas and rural areas. Thus the income and welfare levels are rising.

From the other side causing the pattern of consumption and public education will increase as well (Almasdi Syahza, 2007b).

In line with the objectives of agricultural development, the main objective is the development of oil palm agribusiness

1) develop the palm oil business in the countryside that would spur rural economic activity, create jobs and improve the welfare of the community, and 2) develop processing industry of CPO and its derivative products as well as supporting industries (fertilizer, medicine and alsin) in improving competitiveness and added value of CPO and its derivative products (Almasdi Syahza, 2004).

2) From the existing potential, the development of oil palm plantations in Riau area will also allow the construction of upstream-downstream palm oil, open up business opportunities, growing business diversification, and increasing source of foreign exchange for the Riau region. This development will also open up employment opportunities in the region and will foster other economic sectors which in turn will bring new areas as regional growth centers (Almasdi Syahza, 2007a).

PALM OIL, ITS IMPACT ON THE ACCELERATION OF ECONOMIC DEVELOPMENT IN RURAL REGIONS RIAU by prof. Dr. Almasdi Syahza, SE., MP

Plantations in rural development has opened up opportunities for communities that are able to receive these opportunities. With the company's plantation, Tempatan livelihoods are no longer limited to the primary sector in meeting the needs of his family, but has expanded its business space on the tertiary sector.Various sources of income that is contributed to the merchant (trade goods daily, the rubber trade, transportation and ticket sellers es), staff (teachers, village government), domestic industry (the industry know, bread, and tile printing), unskilled laborers, fishermen, the search in the forest and wood carpenter.

In addition to the amount of total income in each household oil palm growers, things that need to be careful in observing the impact of the implementation of plantation investment is the emergence of new ventures that are managed by the community. Business activity is basically an effort to utilize the business opportunities created as a result of population mobility, which affected both directly and as a result of business created by the indirect effect of plantation development which allows the opening of other business opportunities.

PALM OIL, ITS IMPACT ON THE ACCELERATION OF ECONOMIC DEVELOPMENT IN RURAL REGIONS RIAU by prof. Dr. Almasdi Syahza, SE., MP

A business opportunity will be a source of revenue to provide additional income to the community if it is able to capture potential business opportunity that developed into a real business activity. Thus the ability of people take advantage of existing opportunities will be influenced by the ability of communities to seize opportunities itself. The second is the ability to organize resources owned in such a way that the potential opportunities into actual business that can be operationalized.

PALM OIL, ITS IMPACT ON THE ACCELERATION OF ECONOMIC DEVELOPMENT IN RURAL REGIONS RIAU by prof. Dr. Almasdi Syahza, SE., MP

Although not all plantation activities provide or cause the onset of the sources of income for society, but depend on the type of plantation investments (nucleus or plasma) and economic sectors that will be done. These investments will ultimately affect how much benefit to the plantation activities give droplets in the surrounding community. Government policy and the ability of communities to benefit from the development of plantations is very influential. This will determine the variation of the sources of income that arises later.

PALM OIL, ITS IMPACT ON THE ACCELERATION OF ECONOMIC DEVELOPMENT IN RURAL REGIONS RIAU by prof. Dr. Almasdi Syahza, SE., MP

Generally it can be revealed that the presence of plantation area has led to the emergence of new revenue sources are varied. Before the opening of plantations in rural areas, sources of income are relatively homogeneous society, which depend on the primary sector, utilizing the available natural resources as it is without the use of technological means. The field data reveal the general community life of the agricultural sector as a food crop farmers (mainly crops) and plantations (rubber). In communities around the river daily livelihood as a fisherman in general and wood in the forest search. In addition to the technology used is very simple and monotonous nature without renewal (from what can be done). Its orientation is also limited to the fulfillment of family needs for one or two days ahead without a clear business plan development (subsistence).

PALM OIL, ITS IMPACT ON THE ACCELERATION OF ECONOMIC DEVELOPMENT IN RURAL REGIONS RIAU by prof. Dr. Almasdi Syahza, SE., MP.

PALM OIL, ITS IMPACT ON THE ACCELERATION OF ECONOMIC DEVELOPMENT IN RURAL REGIONS RIAU by prof. Dr. Almasdi Syahza, SE., MP

When examined from the cost structure of oil palm cultivation is technically more operations designed using manual techniques, the costs associated with direct labor and technical personnel in the field has a sizable portion. Based on this, the velocity of money that occur at the site in the long run is expected to stimulate economic growth in this region with the growth of trade and services. This gives the sense that the activities of oil palm plantations in the countryside creating a multiplier effect, especially in employment and business opportunity.

Research Almasdi Syahza (2005), oil palm plantation development has impacted the economy as a chain, is indicated by the multiplier of 2.48. This value can give the sense that any expenditure by oil palm growers in the location and surroundings of Rp 100, a sinerjik makes the velocity of money in these locations and surrounding areas to Rp 248 through other forms of businesses, both real sector and services.

Those values ​​obtained with the basic and the following assumptions:

PALM OIL, ITS IMPACT ON THE ACCELERATION OF ECONOMIC DEVELOPMENT IN RURAL REGIONS RIAU by prof. Dr. Almasdi Syahza, SE., MP

1) Percentage of revenue spent on oil palm farmers in local areas (MPC) approximately 84.15%.

2) The need for oil palm plantation activities which can be met in the local area (PSY) of 70, 97%, among others:

Ø The need light agricultural equipment used in technical management is projected to be met by the local area.

Ø Provision of infrastructure support provided by the plantation companies and cooperatives can be met by the local area.

C. Welfare index

Palm plantation development activities involving much labor and a relatively large investment for the downstream industry, estimated to positively stimulate, grow and create jobs as well as the field tried.

Through economic activities that produce goods and services required during the process of oil palm plantation activities and the development of downstream industry will have backward linkages (backward linkages). In the process of this activity will appear, among others, construction services, farm services, transportation services, food and clothing trade, trade equipment and materials work and materials needed during the process. While at the time of economic activities and post-harvest production process will have linkages to the front (foreward linkages). Process foreward linkages are expected to appear is the service sector, such as: transportation, hospitality, cooperatives, banking, commerce, small rural industries which produce means of agricultural production (Almasdi Syahza, 2007c). All these activities will enhance public welfare index in the surrounding area.

The growth index of the welfare of farmers of oil palm in Riau in 1995 only amounted to 0.49 which means the rate of growth of welfare increased by 49 percent. In 1998 a decline in prosperity index of -1.09. The decrease is due to national economic conditions are not favorable at that time, prices of goods shot up, the rupiah against the U.S. dollar declined. But for the 80 percent low-income groups has increased. The biggest one is the lowest class of 20%. This is because their dependence on foreign products (goods the modern sector is very low). They wear more traditional sectors of goods or local production.

After the economy recovered in 2003 growth index welfare of farmers of oil palm increased again to 1.72. Means the welfare of farmers of oil palm growth progressed by 172 percent. This growth is only enjoyed by a group whose income is 40 percent high of 32.8 percent, while the lowest 60 percent experienced a decline in the welfare of -15.6 percent. But in 2006 shows the growth index of oil palm farmers' welfare was felt by 40% lowest income group (poor), is evidenced by the growth of the welfare index number is positive 0.23. The highest income group (20% highest) experienced a decline in welfare.

The results Almasdi Syahza (2003) showed that oil palm plantation development activities to external influences that are positive or beneficial to the surrounding area. The benefits of this plantation activities on rural economic aspects, among others: 1) Expanding employment and business opportunities; 2) increase local community welfare, and 3) To contribute to regional development.

Some activities that directly impact on the cultural component of rural economies and communities, among others:

1) The development of rural resources, 2) Development of infrastructure that can be utilized by local communities, particularly road infrastructure, 3) Absorption of the local workforce; 4) Extension of agriculture, health and education; and 5) The payment obligations of the company against the state ( taxes and other compensation costs).

Cultivation of oil palm plantation activities in the form of a company or self-help need of direct labor (not including skilled-labor) and technical personnel to administer estates. Ideally, workers were recruited from the community around the plantation, mainly for technical manpower estates taken from the surrounding rural communities. Oil palm plantation activities is enough to absorb labor, in addition to manual activities so that human labor is needed.

The existence of the activities of oil palm plantation development activities, particularly procurement of infrastructure and activities causing higher mobility of society. This is impacting on increased business opportunities, especially in services and trade fields.

Road network development activities also increase the mobility of society, helping people in the marketing of the farm. In addition, the necessities of life in rural communities can be met from the farm community itself. Procurement needs of the company can work with local communities. This is one of the positive impact of increased opportunities for surrounding communities.

D. Index of Economic Inequality

In terms of investment dilaksananakan planting, almost all regencies / cities take advantage of the investment. But when viewed in terms of its economic impact has not shown the expected results, this was due to investment in some areas of the district / city has a multiplier effect is small except for the industrial and service sectors in urban areas Dumai and Pekanbaru.

There are four possible reasons why this phenomenon occurs. First,

sector investment in the industrial districts / cities which led to growing spatial disparities are caused by private industry with the PMA and PMDN facility rather than government investment. More priority to private sector investment profit target, while the government prefers invesatsi value of the benefit to society;

Second, the possibility of industry with domestic and foreign investments in the facilities of each district / city there is a high value but it poses a small multiplier effect so it does not enlarge the areas concerned GDP (such as the agricultural sector). Instead of private investment by PMA and PMDN facility, although of little value in a district / town but has a huge multiplier effect so as to enhance the relevant regional GDP;

Third, growing investment in the district / city PMDN and PMA both focused on the agricultural sector investment rates of return in a rather long period, and the fourth, the possibility of investment by the private sector both domestic and foreign investments sourced embedded in the social sector have a multiplier effect is small and the returns are slow.

Plantation sub-sector contributes in rural development, so it can suppress the economic disparities between regions. Williamson Besamya index between the district / city in 2003 amounting to 0.5060. In 2005 decreased to 0.4429 and continued to decline so that by the year 2007 figure of only 0.3327 Williamson index. Decline in inequality index is more often caused plantation activities causing people's livelihood is no longer limited to the primary sector in meeting the needs of his family, but has expanded its business space on the tertiary sector. These activities lead to economic growth centers in the vicinity. The benefits of this plantation activities on rural economic aspects, including: expanding employment and business opportunities; improving the welfare of the surrounding community; and contribute to regional development.

08 01

Agro Oil Palm Estate Development Efforts Accelerate Economic Empowerment in Rural

Al-Arba'a, 17 Rajab 1428 H - 12:57:05

by: Almasdi Syahza

INTRODUCTION

In order to realize the goal of community economic development, especially in the agricultural sector then prepared a strategic policy to increase or accelerate the growth of the agricultural sector, particularly the increase in revenue and KES .....

INTRODUCTION

Development of Agro Oil Palm Estate In Effort to Accelerate Rural Economic Empowerment by Almasdi Syahza

In order to realize the goal of community economic development, especially in the agricultural sector then prepared a strategic policy to increase or accelerate the growth of the agricultural sector, particularly the increase in income and welfare.One way to achieve that goal is the development of agribusiness is well planned and linked to the development of other economic sectors.

Development of Agro Oil Palm Estate In Effort to Accelerate Rural Economic Empowerment by Almasdi Syahza

Community economic development for the government of Riau implemented through the program pengetasan poverty, improving the quality of human resources, and infrastructure development. This program is better known as K2I (Ignorance, Poverty, and Infrastructure). Any development in the region is inseparable from K2I program to be implemented by local governments.

Development of Agro Oil Palm Estate In Effort to Accelerate Rural Economic Empowerment by Almasdi Syahza

Regional development programs K2I largely determined by the potential possessed by an area, then the policy made by the local government must refer to the potential areas of opportunity to develop. Potential include: 1) the development of horticultural crops, 2) crop plantations, 3) fisheries, 4) farm; 5) mining business; 6) industrial sector, and 7) potential keparawisataan.

Oil Palm Estate Agro Development Efforts Accelerate Economic Empowerment In Rural by Almasdi Syahza

To stimulate economic growth especially in rural areas of Riau, economic policies must embrace a new paradigm where people's economic empowerment should be a major concern. Most of the people living on agriculture and this sector still contributed greatly to the regional economy. Economic empowerment of people through the development of the agricultural sector also means building a better regional economy.

Development of Agro Oil Palm Estate In Effort to Accelerate Rural Economic Empowerment by Almasdi Syahza

Without realizing the source of most of the Riau resident income from agriculture, namely from the sub-sector plantations, crops, livestock, and horticulture.Agriculture is the main livelihood of the community because this area is suitable for agricultural activities, especially sub-sector plantations (oil palm, rubber). From the plantation sector showed results quite encouraging farmers, because it can contribute to high family income.

But some people who are not involved in the activities of plantation life is very poor, due to limited resources they have, among other things: capital, education levels, and limitations of their knowledge to the marketing of agricultural products.From the other side also there are many isolated areas and the limited means of transportation. This causes difficulties for the farmers to market their products outside the region (Almasdi Syahza, 2002b).

Development of Agro Oil Palm Estate In Effort to Accelerate Rural Economic Empowerment by Almasdi Syahza

RESEARCH RESULTS

Development of Agro Oil Palm Estate In Effort to Accelerate Rural Economic Empowerment by Almasdi Syahza

Plantations in rural development concept for the future, designed in collaboration with development company, namely: Agroestate Palm. This model is based on oil palm plantation development earmarked for a new participant farmers. These farmers did not have the land for life insurance or have no land to live worthy of the family farmer. This model is a development of agropolitan concept coined by Friedman and Douglass (1976). Agropolitan concept is one strategy in accelerating rural economic development.

Development of Agro Oil Palm Estate In Effort to Accelerate Rural Economic Empowerment by Almasdi Syahza

In brief, the concept of model agroestate palm which will involve the rural communities are presented in Figure 1.

Development of Agro Oil Palm Estate In Effort to Accelerate Rural Economic Empowerment by Almasdi Syahza

Figure 1. Conceptual Schemes in Rural Palm Agroestate

Development of Agro Oil Palm Estate In Effort to Accelerate Rural Economic Empowerment by Almasdi Syahza

Enterprise developers (developers) to build the garden (farm) and processing plant crops (agribusiness) to the garden in shape and ready to produce industrial plants in the form ready for operation. The source of funds to build a factory farm can use its own funds or loans from banks or other parties is possible.

Gardens and plants that have been built by the developer sold in the form of units or shares of the factory plot to active farmers are farmers who are really interested to manage the garden and the participants are rural communities. As the owner of the orchard farmer participants will receive a certificate as proof of ownership of land and ownership of the factory farmer participants will receive securities in the form of sheet stock.

The participating farmers to buy farm and factory stocks by using a credit facility financing of existing institutions. Credit scheme was facilitated by the availability of a developer or entrepreneur may also by cooperative. The participating farmers as owners of lots left the management (management fees) which amount has been specified in the contract management by consensus. Management services company will manage the plantation and factory management principles with the best estates and professional.

Capital ownership palm oil mill (MCC) for the farmer participants limited to a maximum of 40% of the total working capital, the rest is owned by the company's core and local government stock. It aims to maintain the professional management of MCC.

In farm management, active farmers are grouped into groups of farmers stretch (KPH) and needed as labor wages as agreed.

Farmers' incomes are expected to fairly large, because it can originate from various sources. For an active farmer income will be sourced from his own garden crops, wage employment, and factory stock dividends. Another advantage is the raw material for MCC kontiniutas be guaranteed because farmers feel that MCC has the possibility of selling TBS to another MCC will be spared.

Enterprise developers (developers) will return capital employed (own funds, and loans from financial institutions) and will benefit from the garden and industrial plant stocks that have been built.

CONCLUSION