Differences in Assets, Strategies, and Livelihood Outcomes Among Oil Palm Smallholder Typologies in West Sulawesi, Indonesia

Khaeruddin Anas, Hamka Naping, Darmawan Salman () and Andi Nixia Tenriawaru
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Khaeruddin Anas: Development Studies, Graduate School, Hasanuddin University, Makassar 90245, Indonesia
Hamka Naping: Department of Anthropology, Faculty of Social and Political Sciences, Hasanuddin University, Makassar 90245, Indonesia
Darmawan Salman: Department of Socio-Economics, Faculty of Agriculture, Hasanuddin University, Makassar 90245, Indonesia
Andi Nixia Tenriawaru: Department of Socio-Economics, Faculty of Agriculture, Hasanuddin University, Makassar 90245, Indonesia

Sustainability, 2025, vol. 17, issue 13, 1-30

Abstract: Oil palm cultivation plays a critical role in rural livelihoods in Indonesia, yet previous research has often overlooked systematic institutional differences among smallholders. This study aims to analyze disparities in assets, strategies, and livelihood outcomes among three oil palm smallholder typologies—ex-Perkebunan Inti Rakyat (PIR) transmigrant smallholders who received land through government transmigration programs, independent smallholders who cultivate oil palm without formal partnerships, and plasma smallholders operating under corporate partnership schemes—in Central Mamuju Regency, West Sulawesi. A descriptive quantitative approach based on the sustainable livelihoods framework was employed, using chi-square analysis of data collected from 90 respondents through structured interviews and field observations. The results show that ex-PIR smallholders possess higher physical, financial, and social capital and achieve better income and welfare outcomes compared to independent and plasma smallholders. Independent smallholders exhibit resilience through diversified livelihood strategies, whereas plasma smallholders face asset limitations and structural dependency on partner companies, increasing their economic vulnerability. The study concludes that differentiated policy approaches are necessary to enhance the resilience of each group, including improving capital access, promoting income diversification, and strengthening institutions for plasma smallholders. Future research should expand geographical scope and explore factors such as technology adoption, gender dynamics, and intergenerational knowledge transfer to deepen understanding of sustainable smallholder livelihoods in tropical plantation contexts.

Keywords: oil palm; smallholder typology; livelihood system; Perkebunan Inti Rakyat; sustainable livelihoods (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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