dc.description.abstract | The People's Palm Oil Replanting (PSR) program is an initiative by the Indonesian
government to increase the productivity of old or unproductive oil palm plantations.
Batu Bara District, North Sumatra, is one of the regions with great potential in the oil
palm plantation sector, but the implementation of the PSR program in this region faces
various obstacles. Constraints such as high costs, complicated administrative
processes, and farmers' lack of trust in the effectiveness of the program often hinder the
success of the PSR. This study aims to analyze the constraints faced in the
implementation of the PSR program in Batu Bara District and its impact on the
economic growth of smallholder oil palm farmers in the region. This research uses a
quantitative approach with an explanatory method to identify the relationship between
various variables that affect the implementation of the PSR. Data were collected
through surveys and interviews with oil palm smallholders involved in the PSR program
in two main sub-districts, namely Datuk Tanah Datar and Laut Tador. The data
analysis technique used was multiple linear regression with the help of SPSS 21
software. The variables analyzed included administrative constraints, land availability,
human resources, infrastructure, and sustainability factors. The results showed that
administrative constraints, such as the complex process of processing documents and
the lack of ownership of land certificates by farmers, were one of the main factors that
slowed down the implementation of the program. In addition, the lack of access to
adequate technology and training is also a barrier for farmers to increase their
productivity. Inadequate infrastructure, such as poor road access and a lack of
supporting facilities, also affects the effectiveness of the PSR program. However, these
constraints did not show a significant effect on the economic growth of smallholder oil
palm farmers in this region, based on the regression tests conducted. Nevertheless, this
study found that the sustainability of the PSR program and capacity building of farmers
through education and training can have a positive impact on the productivity and
welfare of oil palm farmers in the long run. This study provides recommendations for
the local government and relevant stakeholders to focus on simplifying the
administrative process, increasing access to technology, and improving infrastructure
to support the success of the PSR program in Batu Bara District. By addressing these
constraints, PSR has great potential to improve local economic growth and the welfare
of smallholder oil palm farmers in the region. | en_US |