ECONOMIC LOSSES AND LAND TENURE THREATS IN PALM OIL PARTNERSHIP SCHEMES: A PLASMA FARMERS’ PERSPECTIVE

Abstract

The nucleus–plasma partnership scheme in Indonesia’s oil palm sector is often promoted as a mutually beneficial development model. However, this study reveals that in practice such schemes strengthen corporate dominance while undermining the bargaining position of plasma farmers. Using a qualitative descriptive approach in Melawi Regency, West Kalimantan, data were collected through in-depth interviews, field observations, and analysis of partnership documents. The findings indicate a lack of transparency in profit-sharing mechanisms, land transfer practices without adequate legal safeguards, and the absence of clear land tenure security for plasma farmers. These conditions not only generate significant economic losses but also increase the risks of dispossession. Structurally, companies exploit the weaknesses of cooperatives and farmers’ limited literacy in agrarian law to legitimize land control through formal mechanisms, particularly the use of Hak Guna Usaha (HGU). This study concludes that the partnership scheme functions more as an instrument of dispossession rather than empowerment. Policy reforms are urgently needed to promote social justice, transparency, and stronger protection of farmers’ rights in order to achieve sustainable agrarian development.