The Impact of Small-Scale Oil Palm Plantation Development on the Economy Multiplier Effect and Rural Communities Welfare

Almasdi Syahza, Dahlan Tampubolon, Mitri Irianti, Geovani Meiwanda, Brilliant Asmit

This research aims to analyze the multiplier effect of small-scale oil palm plantations and the welfare of the community in rural areas during the first cycle. This developmental research was conducted in Indonesia’s largest oil plantation area, the Riau Province. The results showed the magnitude of the multiplier effect index impacts the welfare index of rural communities. Oil palm farmers in rural areas have a more stable economy, and their consumption style follows the urban community. In an effort to accelerate the economy in rural areas, especially in oil palm-producing areas in Indonesia, government policies related to pricing at the farm level are urgently needed to have an impact on increasing the income of small-scale farmers in rural areas. More… 

Citation: Syahza, A., Tampubolon, D., Irianti, M., Meiwanda, G., Asmit, B. (2023). The impact of small-scale oil palm plantation development on the economy multiplier effect and rural communities welfare. International Journal of Sustainable Development and Planning, Vol. 18, No. 5, pp. 1407-1415.