Institutional Strategy of Palm Oil Independent Smallholders: A Case Study in Indonesia

This article aims to describe the institutional structuring strategy of independent smallholders in accelerating sustainable economic development, by taking the example of the cow-coconut integration system (SISKA) problem in Sialang Palas Village, Riau. The method used identified stakeholders related to SISKA, the stakeholder’s goals and interests, farmers’ social and institutional bases, and self-help farmer socio-economic networks. First, identification of various factors through strengths, weaknesses, opportunities, and threats (SWOT) analysis techniques. Second, through the Modern Political Economy analysis technique. Third, imparting knowledge and skills to the farmers and village officials through a collective learning process in utilizing natural resource waste and social resources. The results showed that the farmer management strategy in the reform era started by clustering the interests of farmers. The dynamics of structuring group relations between the chairman and members with farmers outside the group are the basis for strengthening the local ideology of independence in the future. This institutional structuring strategy that focuses on access to farm power in the village decision-making process encourages a more integrated work of farmer organizations. The analysis above shows that the independent smallholder institutional engineering through regulation, organization, and resources are determined by the farmer household economic factors and the application of the value of local wisdom.