Identification of transparency policy issues and their environmental and socioeconomic impacts on smallholder oil palm farmers in North Konawe, Indonesia

The oil palm plantations in the Wiwirano and Langgikima subdistricts of North Konawe Province, Southeast Sulawesi, Indonesia, were criticized for insufficient transparency in their policies and implementation practices. The absence of transparency resulted in socioeconomic challenges for smallholder farmers, including unequal profit distribution and ambiguous land tenure, as well as considerable environmental consequences. Inadequate management practices led to deforestation, soil degradation, and loss of biodiversity, whereas ambiguous land rights facilitated encroachment into ecologically sensitive regions. This study analysed the intricacies related to the transparency of policies and practices within the oil palm sector of North Konawe District in Indonesia. Rapid ethnography was employed to assess the plantation corruption across six villages. Data on local context, social dynamics, and cultural elements is obtained through triangulation of literature analysis, observation, and interviews. Identified key issues include: 1) legal ambiguities surrounding the legalization of smallholder plantations, particularly related to ISPO certification and land tenure; 2) farmer dissatisfaction with profit-sharing arrangements and insufficient contract transparency; 3) unclear contractual terms and farmers’ rights; 4) discrepancies in harvest revenue distribution; 5) lack of transparency in pricing for fresh fruit bunches; 6) limited access to certified seedlings; and 7) inadequate technical and managerial training for sustainable oil palm cultivation. The analysis underscores the necessity of improving transparency, accountability, and equity within the oil palm value chain to enhance the welfare of smallholder farmers. Recommendations involve enhancing land tenure security, improving contract transparency, ensuring equitable revenue distribution, increasing access to certified inputs and training, and reinforcing external anti-corruption principles. Collaboration among government entities, corporations, and agricultural institutions is essential for addressing these systemic challenges.