Business Model of Palm Oil Smallholding in South Sumatra, Indonesia
One of the business models that has been developed in the palm oil plantations in Indonesia is the consolidation of the land of smallholders while professionally managed by cooperatives. While there are cooperatives that perform well, some are not so much resulting in the business cease. This chapter aims to analyze a smallholding palm oil business model that consolidates 367 smallholders with a land area of 734 ha in Srimulyo Village, Tungkal Jaya District, South Sumatra. The results of the analysis show that the cooperative in this village has performed well, and the palm oil land has had major productivity. Several factors are associated with the success of the palm oil smallholding business model, such as the trust from members, the cooperative initiatives, and the sustainability of the plantations. In the framework of developing sustainable plantations, this cooperative has received the RSPO certificate. At the same time, the smallholders have also been able to set up savings funds for replanting to be used during the time to rejuvenate plants.