Research Institute of the University of Riau, Pekanbaru
E-mail: asyahza@yahoo.co.id: Website:
http://almasdi.unri.ac.id
Abstract
Plantation development in Indonesia has brought economic
impact
to the community, whether the community is involved with
plantation activities
and to the surrounding community. Once the rapid development
of wide
plantation people especially pure self, it is necessary to
design an
models to avoid income inequality among farmers. Model
The institution aims to improve the welfare of farmers in
Based Agroestate countryside in the form of plantations
(Agroestate
Plantation). Through the program, farmers have the
opportunity to
buying / owning shares in a plantation product processing
plant
developed by a development company. Agroestate models in
question,
There are two main business activities: first, building a
business activity
and plant gardens, and if necessary settlement industry
participant farmers
will be done by the developer (developer), and second, is
the business
manage the plantation and factory farmers to market
participants and the results are
performed by the entity managing the cooperatives formed by
farmers
participants themselves. Plantation development is also
accompanied by coaching
communities around the plantation to improve the local
economy
host through cooperatives.
Keywords: Institutional economics, agroestate plantation
A. Preliminary
Plantations in rural development has opened up employment
opportunities
for people who are able to accept the opportunity. With the
plantation companies, local communities livelihoods are no
longer
limited to the primary sector in meeting the needs of his
family, but has
expand its space in the tertiary sector. Various sources
income contributed to the traders (trading goods
Daily, rubber trade, transportation and ticket vending ice),
employees (teachers,
village government), domestic industry (industry know,
bread, and printing
tile), unskilled laborers, fishermen, woodcutters in the
forest and carpenter (Almasdi
Syahza, 2009b).
For people in rural areas, to date efforts perkebuan
is an alternative to changing the family economy, because it
is the interest of
community towards the development of plantations is still
high, especially farming
1 Presented at the Symposium and National Seminal organized
by the Association of
2Ekonomi Indonesian Agriculture (PERHEPI), 4-5 July 2012 in
Pekanbaru.
Prof. Dr..AlmasdiSyahza, SE., MP, Lecturer in
Education Studies Program Economics, Research
and senior analyst at the Rural Economy Research Institute
University of Riau.
email: asyahza@yahoo.co.id, website:
http://almasdi.staff.unri.ac.id 2
palm oil. Palm cultivation showed an increase
welfare of rural farmers. From human activities, development
activities
plantations have led to high mobility.
In the future development of the agricultural sector is
still encountered some
constraints, particularly in the development of agriculture-based
systems
agribusiness and agro-industries. Obstacles encountered in
the development
agriculture, especially small-scale farmers, among others
(AlmasdiSyahza, 2007a): 1)
weak capital structure and access to capital sources, 2),
availability of land and soil fertility problems, 3)
procurement and distribution
production facilities, 4) the limited ability in mastering
the technology, 5)
weak organization and farm management, and 6) the lack of
quantity and
quality of human resources for the agribusiness sector.
Farmers are
human resources plays an important role in determining
success of a farming activity, as workers and farmers is
and manager in the farm itself.
Spur economic growth in the current economic policy
must embrace a new paradigm in which the economic
empowerment of the people must
a major concern. Because most of the people living in the
sector
agriculture and the sector is still a major contribution to
country's economy, the economic empowerment of the people
also means
build a better farm economy. Industrial development should
attention to backward linkages (backward linkage) by sector
agricultural or primary sector while forward linkages
(forward lingkage)
must pay attention to increase the value-added processing
and
good marketing so that the products are not in vain. Concept
agricultural development is called the concept of
agribusiness
To realize the goal of community economic development,
especially
the agricultural sector needs to be prepared for the strategic
policy
increase or accelerate the growth of the agricultural
sector, in particular
increased income and social welfare. One way to
achieving this goal is the development of a planned
agribusiness
well and associated with the development of other economic
sectors.
Plantation development aims to eliminate poverty and
underdevelopment especially in rural areas, in addition also
attention to economic equality between groups and between
regions.
Plantation-based agricultural development in the broad sense
intended
to improve the lives of people leaving a
changes in the pattern of life in the surrounding
communities.
Plantation development activities have been able to lift
community economic livelihood especially those of
the agricultural sector. The impact of such development can
be seen from several
indicators, among others: 1) Figures economic multiplier
effect created from
plantation development activities in rural areas increased;
2) Index
rural welfare as a result of development
plantation is positive.
Plantation development has brought economic impact on
community, whether the community is involved with plantation
activity or
the surrounding communities. From the research AlmasdiSyahza
(2009)
explained that: the development of plantations (palm oil) in
Riau can
reduce income inequality between social groups and 3
reducing economic disparities between districts / cities;
may create
multiplier effect and improve the welfare of rural
communities, and
exports of palm oil derivative products (CPO) can stimulate
the growth of
Riau regional economy. Level of well-being felt by the
public
which has affected the development of rural estates in the
area,
particularly palm oil and rubber. Plantation development is
now more
done by many people independently.
Plantation development activities that involve a lot of
labor
and a relatively large investment for the downstream
industry, estimated to be positively
stimulate, grow and create jobs as well as field
trying. Through economic activities that produce goods and
services
required during the process of plantation and downstream
industry development
will have backward linkages (backward linkages).
In terms of investments dilaksananakan plantation sector,
almost all districts / cities utilize investment. If viewed
from
In terms of economic impact shows encouraging results that
the amount of money circulating in the countryside. This has
implications for
increasing purchasing power of the rural communities, which
in turn increased
mobility of goods and services.
There are two possible reasons why this phenomenon occurs.
First,
plantation sector investment and derivative products in the
area causing
spatial disparity between regions has narrowed. This is due
plantation sector investment more using manual labor
compared to modern energy (equipment), so that will add to
earnings
communities in the surrounding area; Second, the possibility
of industrial development
derivatives in each plantation areas also create employment
opportunities
and effort to the local community, so this will also add to
the
purchasing.
Plantation development activities provide external
influences
either positive or beneficial to the surrounding area.
Benefit activities
The plantation economy of the rural aspects, among others:
1) Expanding
employment and business opportunities; 2) Increased welfare
surrounding community, and 3) To contribute to the
development
areas.
Some of the activities that directly impact the
component of the rural economy and culture of the
surrounding community, among others: 1)
Rural resource development activities; 2) The construction
of
infrastructure that can be utilized by the local community,
especially the means
road; 3) Absorption of local labor; 4) Extension
agriculture, health
and education, and 5) The payment obligations of the state
(Taxes and other compensation costs).
B. Institutional Plantation Development Model
Once the rapid development of the people especially the
plantation area
pure self, it is necessary to design a model to avoid
income inequality between rural communities. Model
designed to improve the welfare of farmers is in the form of
Based Agroestate Plantation (Plantation Agroestate). 4
The model presented is intended to try to neutralize
dichotomies of unfair distribution of benefits between
farmers
the company, in addition to ensuring the development of the
company and
continuity of the mill itself. Plantation development
program
has been limited to smallholders and plantation companies.
Peasant ownership was limited to gardens that have been
specified in the program
plasma, while only processing plant owned by the company. To
to
the need to think about the model form of partnership
development activities
plantations, where farmers have a garden as a supplier of
raw materials and
shareholding in the processing plant. Farmers through
cooperative purchasing package
which consist of gardens and shares processing industry.
Through the program agroestate
This plantation farmers the opportunity to buy / own shares
in
processing industry.
Guarantee the availability of raw material quality, quantity
and
continuity is a must to achieve an agro-industries
healthy. The linkage between a source of raw materials and
agro-industries should
integrated into a possession. This emphasizes the concept of
partnership
to the principle of joint ownership by both farmers and
factory farming
processing, which is managed by farmer cooperatives.
Applications oriented to the welfare of farmers through
suppression
productive farm processing efficiency and increase value-added
in the context of agribusiness, which is designed in the
institutional network
work based on the ability and professionalism possessed of
various
actors (actor), that employers developers (developers of
farming), plant
industrial, residential participating farmers, farmers
active participant, enterprise managers
(BUP) or cooperative, or management manager (farm,
industrial factories), and
financing institutions.
In the model-based plantation agroestate there are two
activities
The main business is the first, the business activities to
build the garden and plant
and if necessary the settlement industry participants that
farmers will be carried out by
developer (developer), and second, is the lead in managing
the business and
factory farmers to market participants and the results were
carried out by the agency
business manager of the farmer cooperatives formed by the
participants themselves.
Model-based plantation agroestate a development concept
plantation in the countryside for the future, this concept
in the form of cooperation
with the development company.
Agroestate models designed for community economic
development in
rural-based agriculture (plantation). The model aims to
establishing plantations intended for farmers who do not
have
plantation and land or for farmers who own land but do not
have
venture capital for the development of farming. The farmers
did not
have a suitable piece of land for life assurance or not
having
land for a decent life for family farmers. This model is
Agropolitan the development of the concept of accelerated
development upaqya
rural economy.
In brief, the concept of a plantation-based models
will agroestate
involve rural communities (for farmers who do not own land
plantation) is presented in Figure 1. 5
Figure 1 Schematic Agroestate Conceptual Model Based on the
Plantation
Rural (AlmasdiSyahza, 2007b)
For more details, the model can be described as follows:
Corporate developers (developers) to build the garden
(farm) and
treatment plant crops (agribusiness) to the garden in the
form of ready
generating and industrial plants in the form of ready
operations. Source of funds
to build a garden plant can use its own funds or
a loan from a bank or other parties is possible.
Gardens and plants that have been built by developers
in the form of units sold
plot or plant stock to active farmers that farmers really
interested to manage the garden and its participants are
rural communities.
As a farmer landowner participants will receive a
certificate of land ownership
and as proof of ownership of the factory farmer participants
will receive a letter
valuable in the form of sheet stock.
The farmer-members to buy garden and plant stock using
credit facilities of existing financial institutions. This
loan scheme facilitated 6
availability by the developer or entrepreneur can also by
the cooperative.
The farmer-members as owners of a parcel of land handed over
the management
(Management fee) in the amount specified in the contract
management
based on the agreement. Management services company will
manage
gardens and plants with the principles of the best farm
management
and professional.
Ownership of capital (industrial) for farmers Maximum
participants 40% of the
total working capital, the remaining shares owned by the
company and government
areas. It aims to maintain professional business management.
Model
share ownership can be seen in Figure 2.
In farm management, active farmers are grouped into clusters
farmers overlay (KPH) and required a workforce
wages as agreed.
Farmers' income is big enough, as it can be derived
from
various sources. For active farmer income will be derived
from the results
his orchard crops, wage labor, and factory stock dividends.
Another advantage
is continuity of raw materials for industry would be assured
because farmers
feel has usahaha agro so the possibility of selling the
results
garden to another industry would be spared.
Corporate developers (developers) will return the
capital
used (own funds, and loans from financial institutions) and
will
benefit from the garden and plant stock industry
has been built.
Agroestate model development for farmers in rural
estates
who have developed farm land for plantation-based,
but they do not have sufficient capital to
plantation development, then the model is developed through
agroestate pattern
partnerships. Of the activities is the development of
plantations through
utilization of credit facilities from financial institutions
or non-banking
banking. The goal is to build and nurture smallholders in
new areas or existing areas with advanced technology so that
farmers
able to earn a decent income. Also realize a system
agri-business management is to incorporate various
production, processing, and marketing of integrated.
Implementation of plantation development partnership models
agroestate
performed by the company in the field of plantation
designated as
core companies (partners) with guidance and support agencies
local government functions associated with plantation
development.
Partnership adopted in the development of the plantation
business
utilize the credit facility is a partnership with the plasma
core (farmers).
In this partnership of farmers represented by an entity that
formed directly by the farmer cooperatives. Coordination of
project development
plantationagroestate this partnership models implemented by
the steering committee
Provincial and District Gardening project established by the
Governor and
Regent. Thus the partnership between the plantation
companies
ongoing cooperative intact and continuous.
Agroestate partnership program provides opportunities for
farmers
participants to have a stake in the processing industry
(agro). Procedures
This separation of ownership can be set by agreement between
the farmers in the
it is represented by a cooperative with core companies and
governments through 7
related agencies. This program is recommended on stock
ownership in the industry
treatment should involve three components, namely: farmers
through cooperatives;
core companies, and local governments. While the composition
of ownership
shares can be set by agreement of all three components.
From the other side SetiadiWijaya (2002), the benefits of
cooperatives: 1)
help improve the socio-economic standards in the area with
harness the potential and employment; 2) direct benefit,
because according to the life of rural communities, and 3)
economic pedesan
can grow as strongly rooted in the rural cooperatives. The
design of ownership
industrial capital through plantation agroestate presented
in Figure 2.
Figure 2 The design of the Capital Ownership Model-Based
Agroestate
Rural estates.
Empowerment of the rural economy with the model agroestate
Pattern
Partnership should meet the following requirements:
Farmersagroestate participants are locals who have
land
including the farmers whose lands are affected by the
construction of smallholdings
or who has not been and is a member of koperasi.8
Preparation and determination of candidates
participating farmers conducted by the board
cooperative known as the base village head approval by the
regents.
The candidates participating farmers were given the
opportunity to participate in
development of plantation labor.
Farmer participants have the right form of the garden
(farm) with an area corresponding
the cooperation agreement established between farmers and
cooperative and core companies.
Participating farmers receive commodity sales proceeds
net of repayments
credits and liabilities of the cooperative.
Farmer participants receive a certificate of title to
the farm after the loan is paid off.
Farmers the right to hold accountable the
implementation of development
gardens to the cooperative board members' meetings.
The farmer-members must comply and adhere to all the
provisions of the
set out in the development phase agroestate models.
Farmers are entitled to the opportunity to buy shares
in the industry
built by the core company.
Cooperation in rural development involving plantation
plantation businesses, local government and local
communities will be
can reduce socioeconomic inequalities in rural areas.
Community
host will feel the impact of plantation development through
engagement and increase revenue. In synergy will bring
purchasing power and demand for goods, so that the increased
mobility of goods in
countryside. This condition will lead to the improvement of
living standards
mesyarakat rural and raised in rural growth centers.
C. Model of Institutional Empowerment Through Gardening
Agribusiness Cooperatives
Plantation institutional empowerment can not be separated
from the group
agribusiness partners. In the event there are five groups of
actors
agribusiness, namely rural economic institutions
(cooperatives), entrepreneur farmers (peasants),
credit institutions, employers, and government agencies. The
fifth group of partners
This effort should constitute an integral and interrelated
in activities
agribusiness. From the other side it is also necessary to
empower institutional
utilize the results of research and study of college.
Agribusiness systems are all activities starting from
procurement and
distribution of the means of production to the marketing of
products
produced farm and agro-industry are interlinked with each
other. Agribusiness
as a system include: 1) provision of means of production
subsystem; 2)
production subsystem; 3) processing subsystem; 4) subsystem
of marketing;
and 5) institutional subsystems. So that all the subsystems
that can be run as
with the demands of agribusiness, it is necessary
empowerment model designed
institutional-based cooperative agribusiness plantations
involving
some institutions that support. The model is presented in
Figure 3. 9
Figure 3. Gardening Through Empowerment Model Cooperative
Institutional
Agribusiness in Rural
1. The Role of Higher Education
Universities (PT) through research institutes, or research
center
plays an important role in the economic empowerment
countryside. PT's role has three-dimensional force. The
first dimension PT
should be able to explore the potential of human sumbedaya
region (HR), resource
nature (SDA) including land suitability, availability of
land and commodities
seeded area. The second dimension of the public to know the
potential environmental
rural and business opportunities that fit with the social
culture including
availability of infrastructure and facilities. The third
dimension is the formulation
recommendation of a combination first and second dimension
to the partner group
agribusiness. Besides, as an institution of independently,
PT is
monitoring agency activities in rural agribusiness.
2. Businessman
Businessman in question here is the entrepreneur as the
owner of capital
and as a trader (middleman, distributors, retailers). As an
owner of capital
cooperation with cooperatives in the provision of the means
of production, 10
equipment / agricultural machinery, and including technology
providers that support activities
rural agribusiness. Function as a trader is a product
reseller
agriculture which has been through a treatment process by
cooperative standards
which is determined by the trader. Target market products
tailored to the criteria
that is, it could export, supermarket, restaurant, hotel, or
traditional markets. From
other hand employers also provide information through the
co-operative market, whether
concerning the purchasing power of the market, market
opportunities, and so forth. Including
provide expertise that is placed in the cooperative. The
experts
tailored to the needs on the ground, whether manufacturing
expertise,
marketing, or quality control.
3. Credit Institutions
Credit institutions to hold enough agribusiness plantations
role. This institution as a provider of loans to
cooperatives and entrepreneurs
plantation. On economic empowerment model is based
agribusiness,
credit institutions only deal directly with cooperatives and
entrepreneurs. Credit channeled through rural cooperatives
that have
has the form of agribusiness and agro-industries. Apply for
credit cooperatives
for working capital for the members (farmers) and the
working capital for the cooperatives themselves
(As agro-industry actors). While credit to employers could
be
in the form of business development (supermarket, shops,
export, supply
technology, and so forth).
4. Entrepreneur peasant (farmer)
Underdevelopment of the agricultural activities in the
agri-based
countryside caused by several things, among others: the
level of knowledge
farmers, the equity, the absence of market certainty,
limited facilities and
supporting infrastructure. To overcome this all have to go
through a
organization whose mission is the same. Cooperatives in
rural areas is an option
the most appropriate. Cooperative security is one of the
markets of agricultural products
in the countryside. Therefore farmers should prioritize the
production of commodities
seed in the region. Farmers do business by appointment
with the cooperative as a provider of funds. Farmers
undertake activities
farming was accompanied by a team of experts appointed by the
cooperative. With
hence a close relationship between cooperatives and farmers.
Partners form
This effort will provide multiple benefits to farmers, among
others: 1)
a guaranteed market of agricultural products for farmers; 2)
farmers avoid the risk
price fluctuations; 3) farmer gets three benefits, which
benefit from the results
sales of agricultural products, the advantages of the
distribution of cooperative efforts by
at the end of the year, and profit from the investment in
the cooperative
(Agroestat package), and 4) the establishment of business
partnerships between cooperatives
and farmers.
5. Relevant agencies
Government involvement in economic empowerment model
rural communities are expected only limited agribusiness
berbasikan
policy makers and development. Ketertuan and policies
concerning the
mutual regulation of agribusiness. While coaching
given to cooperatives and farmers. Relevant agencies can
only do
guidance to both groups using professional staff from
outside, either from universities or from other professional
bodies. 11
6. Cooperatives as a business entity
To develop small-scale agribusiness enterprises need to be
established
cooperative. Without a small agribusiness cooperatives may
not be able to flourish.
This cooperative will be associated with large employers.
Cooperative
plays an important role in economic empowerment activities
rural communities. Cooperatives should serve as a business
entity in
rural and agribusiness executive full subsystem.
Cooperatives as
intermediaries channeling of production facilities and
equipment / agricultural machinery to members
(Farmers). From the other side of the cooperative as well as
broker of products
agriculture produced by its members. Cooperative also serves
as
marketing institute of agricultural products. On cooperative
processing is done
result (assortment, packing, labeling, and storage) in
accordance with the
demand and market needs. Cooperatives also serve as media
market information, whether market opportunities, growth
rates and purchasing power
market. Through the cooperative market information should be
able to create market opportunities
agricultural products, so that farmers do not hesitate to
carry out activities
their farm because there is no guarantee of a cooperative
that their products will
accommodated. This activity will stimulate the participation
of members of the cooperative,
which is essentially a cooperative effort be sustainable.
The investment made by the cooperative form of transport,
machinery
processing of agricultural products (agro-industry),
agricultural machinery and equipment must be
investment on behalf of members. This means that every
member has shares
cooperative ownership of assets. With the concept
agroestatedemikia plantations in
country can thrive.
Cooperatives also play a role as a provider of credit
obtained from
credit institutions and employers. The extension of credit
is based on the
forms of agricultural enterprises developed commodity and
have
market opportunities. Loan repayment rate by farmers can be
done through
cuts sales of agricultural products to the cooperative.
Cooperatives as a business unit in the field agtribisnis,
generally includes
business areas are so extensive that in principle can be
grouped
the five major components, namely: 1) the business that
provides and
channel inputs in the form of equipment and agricultural
machinery; 2)
businesses in the production of agricultural commodities; 3)
industrial businesses
agricultural processing (agro); 4) marketing businesses
results
agriculture, and 5) service businesses such as banking,
transportation, insurance,
or storage.
Activities of the business unit by plantation-based
cooperative will cause
economic multiplier effect in the lives of rural
communities, in effect
agribusiness as a business unit to create business
opportunities in activities
economic and raises incomes in society that
ultimately improve the welfare of rural communities.
D. Cooperative Development for People Around
Plantation Development
The concept of partnership is part of corporate social
responsibility
to the environment in accordance with the concept of
management by objectives
or participatory. Large companies should be responsible for
developing
small business customers and the community, because in the
end the concept of 12
partnership that can ensure the existence of a large
company, especially for
long term. Each party is partnering with cooperatives, not
only
performed as mercy by the strong against the weak, but
partnerships should be established for the performance of
the business will be coupled
with a sense of strong social responsibility.
Competition in an increasingly competitive environment,
where business
cooperatives are required to be able to compete with other
businesses, because
This institution is considered sufficient repsentatif in
economic empowerment
society. Cooperation measures in the form of a business
partnership
strategies to be able to develop cooperative efforts and
cooperation morally
This is very necessary to set up a maximum of employers
large through coaching package. This cooperative effort
should be recognized not independent
of challenges and obstacles, both in terms of capital, human
resources,
management, lack of mastery of information technology,
business climate, and
distribution of services / products.
In development for accelerating regional economic
cooperation, so
there needs to be a partnership. Partnership in question is
in the form of
participation of all elements related to the development of
cooperatives.
Cooperative development based on the existence of potential
in the area that can
support the passage of cooperatives, among others: the
public, businesses (small and
medium), home industries, and for the rural areas
farming communities.
Of basic needs together, this potential must be developed
through
cooperatives and the cooperative on each type of business or
activity. Cooperatives with good management cooperation in
forms partnership with financial institutions and companies.
Of the three
component partners (cooperatives, companies, and financial
institutions) need support
from the government as policy maker. Governmental nature
here
just as the provision of services in the form of coaching
and counseling. For more
clear form of cooperative partners are presented in Figure
4. 13
Community
Small business
Medium-sized enterprises
Home Industry
Farmer
ENTREPRENEURS
COOPERATIVE
Potential Cooperative
Formal
Banking
Non Banking
Non-Formal
Credit Institutions
National companies
Local Company
Financial Services
Member
COOPERATIVE
Participation
Benefit
Financial Services
Flow of Goods
Welfare
Member
Figure 4. Draft Cooperative Partners to Improve Welfare
Approximately society Estate Development in Rural
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