Impacts of Oil Palm Plantation Enterprises on Local Economies and Community Well-Being (Study Case of PT. TPR in South Sumatra, Indonesia)

The expansion of oil palm plantations has sparked significant debates on environmental, social and economic aspects. The debate on the impacts of oil palm has focused more on environmental impacts such as deforestation and biodiversity loss. The potential socio-economic benefits of oil palm, particularly for local communities, have often been overlooked in current assessments. This study aims to investigate how palm oil plantations contribute to local economic empowerment and improve community well-being. This research employed a mixed-methods approach, integrating a literature review, snowball sampling for interviews, accidental sampling for questionnaire distribution, and qualitative descriptive analysis. Community perceptions of PT. TPR’s economic impact show that 5 out of 6 parameters received a positive perception score, exceeding 75%. The highest score, 95.58%, highlights the enhanced transportation access due to PT. TPR’s presence, while other scores over 75% indicate community agreement that PT. TPR has increased household income, created job opportunities, and improved local infrastructure. The lowest score, 43.46%, reflects the community’s view on land compensation adequacy. Overall, PT. TPR’s presence positively influences household welfare, with both native and transmigrant populations reporting a high level of welfare sufficiency, classified as “very high” (>75%), enabling them to meet household needs. For social impacts, 13 out of 19 parameters received positive scores above 75%. The highest score, at 100%, reflects unanimous agreement that PT. TPR facilitates community accessibility and reduces fire incidence. Other scores above 75% indicate that PT. TPR fosters positive relations between the company and the community, as well as within the community itself. The lowest score, 12.39%, indicates limited agreement on PT. TPR’s role in rural population growth. In summary, PT. TPR’s economic and social impacts are viewed positively by the community (both native and transmigrant), with more than 75% favourable perceptions across major indicators.