Palm oil conflict and social transformation: Exploring the intersection of farmer autonomy and conflict resolution

Agrarian conflict between commercial and sub-commercial oil palm plantation production in Sumatra Province has been a long-standing issue, significantly affect the welfare of local farmers. By analyzing agrarian law and human freedom indices, this study identifies key production gaps and stages of consensus concerning farmers’ autonomy rights in plantation land ownership. Drawing on a matching analysis approach, supported by interviews, surveys, and FGD observations, this research examines the bias present in current policies governing farmer autonomy. Overall, farmers in five rural areas of Sumatra Province demonstrated that those working in sub-commercial oil palm plantations experienced lower levels of production freedom compared to those in commercial plantations. The study also shows that the division of land ownership tends to be a key factor to the emergence of agrarian conflicts, which remains a significant challenge to the sustainability of the autonomy system in oil palm plantations. To solve the problem of agrarian conflicts, this study proposes a strategic approach that extends beyond the assessment of Roundtable on Sustainable Palm Oil (RSPO) policies to emphasizes the importance of institutional policies. This study highlights that strengthening institutional policies at all administrative levels contributes to promoting accountability in the reform of the peasant autonomy system. In addition, the active engagement of both formal and informal institutions plays a critical role in mitigating future agrarian conflicts, particularly defending farmers’ production rights throughout the plantation development process.