143
(Danielsen et al. 2009). Not surprisingly, plant diversity within oil palm plantations
was impoverished compared to forests due to regular maintenance and replanting
(every 25–30 years) of oil palm fields (Fitzherbert et al. 2008; Danielsen et al.
2009).
10.2.4 Impacts on Human Well-Being
10.2.4.1 Rural Development
Indonesia and Malaysia currently have a large and highly competitive palm oil production sectors that are very important to their respective national economies. The
oil palm sector can provide substantial employment and income opportunities (Rist
et al. 2010; Cahyadi and Waibel 2013). Winrock (2009) estimated that up to 57% of
Riau’s population, and between 10–50% in 11 other Indonesian regions, were supported one way or another by the oil palm industry (including employees and family
dependants in downstream processing and associated services).
Local communities in Indonesia often perceive oil palm cultivation as a promising livelihood activity (Rist et al. 2010). Oil palm production can have higher
income returns to land and labor for smallholders, but the overall livelihood benefits
can depend significantly within (and across) communities (Rist et al. 2010;
McCarthy 2010) (see Box 10.1). For example, while income from oil palm production contributes significantly to the livelihoods of independent smallholder households (e.g., Lee et al. 2014; Budidarsono et al. 2012), it can vary depending on the
agricultural practices adopted (Lee et al. 2014). In some cases the received income
can be severely reduced after paying the initial loans that allow them to be involved
in oil palm agriculture, but the repayment period can depend on multiple circumstances (Feintrenie et al. 2010).
According to legislation, wages for permanent plantation workers should be at
least equal to the provincial minimum labor payments in Indonesia. While locals
can complement their farm income through temporary work in plantations (Tata
et al. 2010; McCarthy 2010), in some regions, plantation jobs are often monopolized by transmigrants (Obidzinski et al. 2012, 2014). It is also worth mentioning
that working in oil palm plantations is often a strenuous activity, with, sometimes,
low labor standards and substantial gender disparities (Li 2015).
Despite its potential to improve rural development, the oil palm sector operates
in isolation in many Indonesian provinces and has limited economic multipliers
(Obidzinski et al. 2014). Often this happens because employment benefits do not
always reach the local communities, as permanent contract workers for agricultural
labor and management in large plantations are usually transimmigrants (transmigrants) (Tata et al. 2010; Obidzinski et al. 2012; McCarthy 2010; Obidzinski et al.
2014).
10 Stakeholders’ Perceptions of Ecosystem Services and Human Well-Being Impacts…
(Danielsen et al. 2009). Not surprisingly, plant diversity within oil palm plantations
was impoverished compared to forests due to regular maintenance and replanting
(every 25–30 years) of oil palm fields (Fitzherbert et al. 2008; Danielsen et al.
2009).
10.2.4 Impacts on Human Well-Being
10.2.4.1 Rural Development
Indonesia and Malaysia currently have a large and highly competitive palm oil production sectors that are very important to their respective national economies. The
oil palm sector can provide substantial employment and income opportunities (Rist
et al. 2010; Cahyadi and Waibel 2013). Winrock (2009) estimated that up to 57% of
Riau’s population, and between 10–50% in 11 other Indonesian regions, were supported one way or another by the oil palm industry (including employees and family
dependants in downstream processing and associated services).
Local communities in Indonesia often perceive oil palm cultivation as a promising livelihood activity (Rist et al. 2010). Oil palm production can have higher
income returns to land and labor for smallholders, but the overall livelihood benefits
can depend significantly within (and across) communities (Rist et al. 2010;
McCarthy 2010) (see Box 10.1). For example, while income from oil palm production contributes significantly to the livelihoods of independent smallholder households (e.g., Lee et al. 2014; Budidarsono et al. 2012), it can vary depending on the
agricultural practices adopted (Lee et al. 2014). In some cases the received income
can be severely reduced after paying the initial loans that allow them to be involved
in oil palm agriculture, but the repayment period can depend on multiple circumstances (Feintrenie et al. 2010).
According to legislation, wages for permanent plantation workers should be at
least equal to the provincial minimum labor payments in Indonesia. While locals
can complement their farm income through temporary work in plantations (Tata
et al. 2010; McCarthy 2010), in some regions, plantation jobs are often monopolized by transmigrants (Obidzinski et al. 2012, 2014). It is also worth mentioning
that working in oil palm plantations is often a strenuous activity, with, sometimes,
low labor standards and substantial gender disparities (Li 2015).
Despite its potential to improve rural development, the oil palm sector operates
in isolation in many Indonesian provinces and has limited economic multipliers
(Obidzinski et al. 2014). Often this happens because employment benefits do not
always reach the local communities, as permanent contract workers for agricultural
labor and management in large plantations are usually transimmigrants (transmigrants) (Tata et al. 2010; Obidzinski et al. 2012; McCarthy 2010; Obidzinski et al.
2014).
10 Stakeholders’ Perceptions of Ecosystem Services and Human Well-Being Impacts…