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This study identifies legal protections and challenges for plasma farmers in palm oil partnerships, suggesting needed reforms.
This study discusses legal protection for plasma farmers in the oil palm plantation business partnership pattern. The core-plasma partnership is seen as an inclusive development strategy, but in practice, it often causes conflict due to unequal bargaining positions and unclear agreement clauses. Cases such as the unilateral creation of addendums and the purchase of fresh fruit bunches below the standard price set by the government, the lack of transparency, and the absence of a company accountability mechanism for plasma farmers, prove that the position of plasma farmers is weak. The objectives of this study are: (1) to find the characteristics of oil palm plantation business partnerships; (2) to identify forms of legal protection for plasma farmers; and (3) to construct a future legal framework related to sustainable oil palm plantation partnerships. The method used is normative juridical using statutory, conceptual, and case approaches. The results of the study confirm the necessity to strengthen partnership agreements and revise laws and regulations to balance the rights and obligations of the parties. The study concludes that reinforcing distributive and corrective justice, improving state supervision, and empowering plasma farmers are key to achieving fairness and sustainability in plantation partnerships.
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Rahman et al. (2025) studied this question.
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