Flash News
infosawit

Sustainable Palm Oil as Social Capital for Communities



Foto by Dede Sugiana/Sawit fest 2021
Sustainable Palm Oil as Social Capital for Communities

InfoSAWIT, JAKARTA - The application of universally applicable sustainable principles and criteria is a primary requirement for the existence of sustainable palm oil. Originating from palm oil plantations, the presence of sustainable palm oil plantations is expected to provide sustainable economic welfare; can it become social capital for communities?

The idea of social capital emerged in the early 20th century. It originated from an educator in the United States, Lyda Judson Hanifan, who first introduced the concept of social capital. In her writing titled "The Rural School Community Centre," Hanifan explained that social capital is not capital in the ordinary sense, such as wealth or money, but rather a metaphorical meaning, yet it is a real asset or capital that is important in community life.

According to Hanifan, social capital includes goodwill, friendliness, sympathy, as well as social relationships and cooperation among individuals and families that form a social group. It is not merely seen as a result but more as a process. Social capital is continuously formed and accumulates itself. It is rooted in the ideas of trust, norms, and informal networks, as well as the belief in social relations as valuable resources.

The existence of social capital can serve as a reference for the development of sustainable palm oil, as the empowerment of social, environmental, and human aspects becomes a triple bottom line that is interconnected. It is not just about pursuing economic profit but also about synergizing social and environmental conditions with the daily needs of human life.

Although sustainable palm oil tends to be more pro-human, environmental, and economically beneficial, the implicit meaning of sustainable development is clearly revealed as a long-term vision that aims to be achieved in developing sustainable palm oil in the future.

Because human needs often boil down to economic interests, the activities carried out always seek economic benefits to develop the surrounding social and environmental conditions. Of course, the material needs of human life become a goal for many people.

Although it is difficult to convince the importance of social and environmental empowerment, the business world often focuses primarily on material profits for the sustainability of their businesses. This primary concern often becomes the main goal of various agendas undertaken by entrepreneurs to grow their businesses.

Palm oil plantations themselves have been commercially developed for over 113 years in Indonesia, playing a significant role in developing remote areas into advanced and prosperous regions. The role of palm oil plantations in underdeveloped areas is slowly but surely beginning to change as the growth of oil palm plants starts to bear fruit and increase yields.

The age of 25 years serves as a benchmark for oil palm trees cultivated in palm oil plantations and developed commercially. The economic benefits obtained by plantation companies and oil palm farmers managing them are considerable over that 25-year period.

The economic benefits gained by plantation companies and oil palm farmers drive the rural economy to become more advanced and developed. Take, for example, the family of Amran (51 years old), who manages his 2.5-hectare palm oil plantation.

The income he earns from his palm oil plantation ranges from IDR 3-5 million per month. To this day, his plantation still produces up to 28 tons of Fresh Fruit Bunches (FFB) per year. In addition to being an independent oil palm farmer, Amran also runs a small grocery store by the roadside, which provides an income of IDR 2-5 million per month. This business was also funded by savings from his time as an independent oil palm farmer, which he used as capital for his grocery store.

Amran's life is similar to many independent oil palm farmers in different locations; his family's life is relatively prosperous, supported by a wife who works as a civil servant teacher at a primary school in the village. They have two children who are currently pursuing their education in the student city of Yogyakarta.

The economic benefits from oil palm cultivation have indeed contributed to the welfare of the broader community. The economic capacity of an independent oil palm farming family is comparable to that of plasma farmers who partner with plantation companies. This is especially true for employees of plantation companies who consistently receive monthly salaries.

Their lives, which progress simultaneously, drive the economic activity of the village forward. In line with the community empowerment programs implemented by the central and local governments, the communities in palm oil plantation centers are becoming more advanced and prosperous.

This social capital serves as a foundation for village communities in managing their social and environmental aspects. Referring to Hanifan's emphasis on the importance of social capital, this is where the role of palm oil plantations can become social capital for the wider community. As palm oil plantations grow and develop, the welfare of the community will also increase.

Unfortunately, when it comes time to rejuvenate oil palm plants, economic difficulties still arise. In fact, the economic capacity of oil palm plants over 25 years should serve as the primary capital from savings specifically allocated for future rejuvenation.

The government's program for People's Palm Oil Rejuvenation (PSR) could be a solution for farmers needing to rejuvenate their crops. Therefore, the social capital from palm oil plantations must always be maintained through the formation of farmer groups and cooperative institutions that support the sustainability of palm oil plantations in the future. Hopefully.

Author: Editor-in-Chief of InfoSAWIT/Ignatius Ery Kurniawan


READ MORE ON GOOGLE NEWS.