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Alternative study; processing the results of smallholder oil palm fruit bunches at a "sharia" palm oil processing plant in Riau Province

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Author Affiliations

  • 1Political Economy Study and Plantation Development at the Department of International Relations, University of Riau, Indonesia

Res. J. Agriculture & Forestry Sci., Volume 7, Issue (1), Pages 1-8, January,8 (2019)

Abstract

Processing of plantation products, namely oil palm fruit bunches, produces primary production such as; crude palm oil and by-products such as palm kernel, shell, fibers and high acid. The results of processing oil palm fruit bunches, which are material descriptions in main production and by-products, provide maximum benefits to factories that process oil palm fruit bunches, but have not provided an increase in income value to farmers who supply oil palm fruit bunches to processing plants, and even marginalize the role of palm fruit-producing farmers and increasingly alienates farmers from their aspirations to prosper in oil palm cultivation. What is the fact of the usefulness of the processing of oil palm fruit bunches which describes the fruit oil palm material and the increase in the value of income from the marketing of production received by the producers of palm fruit bunches (independent oil palm farmers) and those obtained by the palm fruit bunches processing plants practiced so far? The design of the model for the utilization and marketing of the main production, the side production of the plantation to be sharia dimension? The purpose of this study reveals how the main production and by-product production of oil palm fruit bunches which are processed by palm oil processing mills which produce primary production and by-products, have a sharia dimension or not, which provides increased income and benefits to suppliers of palm fruit bunches that are comparable to downstream type of production; then design how the shari'a dimensional model of the main production, the byproduct of processing palm fruit bunches "which provides profit-sharing to suppliers of oil palm fruit bunches and palm fruit bunches processing plants. The study was conducted in Riau-Indonesia Province, using a mixed method approach between qualitative and quantitative research. Data were collected by interview, observation, discussion focus group and questionnaire. Data validation is done by data / source triangulation. In this study found processing of palm fruit bunches has not shown a sharia dimension that provides increased income and benefits between palm fruit suppliers and palm fruit bunches processing plants. The shari'a dimension between farmers who supply oil palm fruit bunches with palm fruit bunches processing mills does not occur in the processing plan scheme and in the segment of palm fruit bunches purchases to producing farmers by palm oil processing mills, and on the calculation of the main production profits and byproducts of oil palm fruit bunches. Where there is no agreement or agreement between the producers of oil palm fruit bunches with processing plants in all aspects of processing oil palm fruit bunches. The people as producers of oil palm fruit bunches that supply fruit to plantation processing factories do not get profit-sharing on downstream production which arises from processed palm fruit bunches when processing occurs. So that suppliers of palm fruit bunches do not get maximum profit.

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