Oil Palm Plantation PIR Model: The Power Relationship between Planters and Company

Abstract

Oil palm plantations -which integrate PIR planters and companies in the production organization -is considered to harm the planters. Plasma planters are subordinated and powerless in the face of the company. The questions is, however, whether the plasma planters are always weak position in the overall production process of the PIR model. This paper aims to describe the stages and processes of PIR estate partnerships and discuss the dynamics of power involved in the process. Actors’ perspective are used to see political action of planters in accessing economic resources. The result of this study shows that the power of plasma planters against companies has shifted, due to the change of control over the estate resources. Initially, controls of the estate were in the hands of the company and then shifted to the hands of planters. Control over estate resources makes it possible for the planters to compete in maximizing the results and some planters were able to reduce plantation pressure using a new mechanism of oil palm distribution.