THE IMPACT OF OIL PALM PLANTATION INVESTMENT ON ECONOMIC AND SOCIAL CHANGES IN THE COMMUNITY IN KETUNGAU HULU SUBDISTRICT SINTANG REGENCY

Markus Sinaga

No t2uce, OSF Preprints from Center for Open Science

Abstract: The objective of this research is to investigate how investments in oil palm plantations have affected the social and economic transformation of the Ketungau Hulu Subdistrict, located in Sintang Regency. Data were gathered from representative samples in Nanga Bugau Village, Mungguk Kempas Village, and Sepiluk Village using a quantitative technique and a cross-sectional survey design. Stratified random sampling was used to choose the research sample, and multiple linear regression, correlation analysis, normality tests, and descriptive statistics were used for analysis. The findings demonstrated that investments in oil palm plantations greatly increased the income of all groups—rubber farmers, plasma farmers, plantation workers, traders, and government employees. However, the cost of living increased significantly along with this wage increase, which somewhat offset the benefits of the income increase. From a social perspective, the changes were neutral to slightly positive, including changes in lifestyle, social interactions, and access to education and health services. However, issues of income inequality and land conflicts emerged as challenges that need to be addressed. These findings align with previous studies, indicating that while oil palm investment can increase income and infrastructure development, negative impacts such as environmental degradation and significant social changes need to be managed well. This study suggests the need for wise and inclusive policies to ensure that the economic benefits of oil palm plantation investment can be felt by all community layers without causing significant negative impacts.

Date: 2024-06-02
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Persistent link: https://EconPapers.repec.org/RePEc:osf:osfxxx:t2uce

DOI: 10.31219/osf.io/t2uce

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