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Overview of Indonesian Oil Palm Smallholder Farmers
Indonesian smallholder oil palm farmers own and/or manage at least 3.1 million ha of oil palm,
accounting for more than 40% of the total oil palm area and generating an estimated 35% of total crude
palm oil production nation wide. Smallholder farmers are present in all of Indonesia’s palm oil growing
provinces, with significant areas of smallholder-managed farms in at least 18 provinces.
There are five main transactional models for smallholder farmers. The different models are present to varying degrees in different geographies and have varied benefits
(e.g. productivity and farmer profitability) and risks (e.g. access to reliable markets and quality inputs
such as seedlings or fertilizer).