Oil Palm Expansion: Social Implications And Economic Growth Of Oil Palm Farmers Households

This article aims to examine the implications of oil palm expansion on social dynamics and economic growth among oil palm farming households. The continuous increase in land area and production volume of oil palm has economically provided new opportunities for farming households. However, this growth is accompanied by complex social and economic dynamics at the local level that warrant critical analysis. The study adopts a mixed-methods approach, integrating both qualitative and quantitative methods. Data were collected through in-depth interviews, direct observations, structured questionnaires administered to oil palm farming households, and document analysis. The research was conducted in plantation areas of West Sumatra. Qualitative data were analyzed using the Miles and Huberman framework, while simple descriptive statistics were employed for quantitative data analysis. The findings reveal that the social implications of oil palm expansion include changes in household labor patterns, shifts in lifestyle and consumption behavior, and the emergence of gender inequality within farming households. On the economic side, oil palm expansion has positively contributed to household income, improved living standards, increased access to formal financial institutions, and greater dependency on market forces.