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Abstract
This research examines the economic behaviour of independent oil palm smallholders in fulfilling household expenditures from all their income sources and their level of welfare at present and the stability in the future. The income of oil palm smallholders in Megang Sakti District, Musi Rawas Regency, was IDR 24,731,506 per hectare per year. The total income of the farm household was IDR 43,614,839 per year, which was contributed by the oil palm plantation, the non-oil palm plantation, and non-farming productive activities.All household expenditures could be covered by all existing sources of income, and the net future income will increase as the oil palm plantation enters productive age periods. It has been revealed that oil palm plantations operated by independent smallholders present significant opportunities for economic growth and rural development, but they raise challenges related to sustainability, market access, and social equity. The independent oil palm farmers are recommended to (1) form an independent farmer institution and implement proper and sustainable institution management and (2) submit a proposal to the Oil Palm Plantation Fund Management Agency (BPDPKS) and other financial institutions to demand a grant or get a loan at an affordable interest rate for financing their future business activities. Furthermore, there are ten practical actions that can be implemented by the independent oil palm smallholders.
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Copyright (c) 2025 Lifianthi, Elly Rosana, Andy Mulyana, Thirtawati

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References
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References
Andriani, E. (2017). Analisis Sumber Pendapatan Petani Kelapa Sawit. Jurnal AGRISEP: Kajian Masalah Sosial Ekonomi Pertanian dan Agribisnis, 16(2), 145–154. doi: 10.31186/jagrisep.16.2.145-154
Bagio, B., Handayani, S., Nasution, A., & Zulkarnain, Z. (2020). Analisis Pendapatan Usahatani Kelapa Sawit di Trans Bakal Buah Kota Subulussalam. Ekombis: Jurnal Fakultas Ekonomi, 6(2), 158–164. doi: 10.35308/ekombis.v6i2.2880
Candra, E., Hadi, S., Dewi, N., & Anggraini, R. S. (2021). Independent Oil Palm Smallholder Farmers; Household Income, Consumption, and Sustainability Challenges. Jurnal Agribisnis, 23(1), 101–115. doi: 10.31849/agr.v23i1.5410
Chalil, D. (2024). Can Oil Palm Smallholders Become Financially Independent?. Jurnal Penelitian Kelapa Sawit, 32(2), 129–139. doi: 10.22302/iopri.jur.jpks.v32i2.264
Chalil, D., Sidique, S. F., & Barus, R. (2019). Sertifikasi Minyak Sawit Petani: Dampak terhadap Pembangunan dan Penghidupan Berkelanjutan. Jurnal AGRISEP: Kajian Masalah Sosial Ekonomi Pertanian dan Agribisnis, 18(2), 343–358. doi: 10.31186/jagrisep.18.2.343-358
Fahmi, M., Azis, Y., & Ferrianta, Y. (2023). Analisis Pendapatan Usahatani Kelapa Sawit Swadaya di Desa Tawan Jaya Kecamatan Teweh Selatan Kabupaten Barito Utara Kalimantan Tengah. Frontier Agribisnis, 7(3), 113–122. doi: 10.20527/frontbiz.v7i4.11545
Forgenie, D., Hutchinson, S. D., & Muhammad, A. (2024). Welfare Implications of Rising Imported Food Costs in the Caribbean. Journal of Agriculture and Food Research, 18, 1-9. doi: 10.1016/j.jafr.2024.101489
Gai, A. M., Poerwati, T., Maghfirah, F., & Sir, M. M. (2020). Analysis of Sustainable Livelihood Level and Its Influence on Community Vulnerability of Surumana Village, Central Sulawesi. Journal Of Regional And Rural Development Planning, 4(3), 209–220. doi: 10.29244/jp2wd.2020.4.3.209-220
Hakim, A. (2018). Pengaruh Biaya Produksi Terhadap Pendapatan Petani Mandiri Kelapa Sawit di Kecamatan Segah. Jurnal Ekonomi STIEP, 3(2), 31–38. doi: 10.54526/jes.v3i2.8
Hayat, N., Mustafa, G., Alotaibi, B. A., Nayak, R. K., & Naeem, M. (2023). Households Food Consumption Pattern in Pakistan: Evidence from Recent Household Integrated Economic Survey. Heliyon, 9(9), e19518. doi: 10.1016/j.heliyon.2023.e19518
Haykal, M., & Yunus, S. (2021). Determinants Of Oil Palm Farmers’ Welfare in Aceh, Indonesia. Journal of Contemporary Issues in Business and Government, 27(1), 1221–1229. Retrieved from https://cibgp.com/index.php/1323-6903/article/view/629
Lalita, R., Ismono, R. H., & Prasmatiwi, F. E. (2019). Kajian Sosial Ekonomi dan Tingkat Kesejahteraan Rumah Tangga Petani Kelapa Sawit di Kabupaten Tulang Bawang. Jurnal Ilmu-Ilmu Agribisnis, 7(2), 195. doi: 10.23960/jiia.v7i2.195-202
Lestari, D.A.H., Fitriani, F., Prasmatiwi, F.E., Sayekti, W.D., Lestari, F.Y. (2025). Analysis of the Welfare Gap Among Smallholder Palm Oil Farmers in Two Scheme Farming Management: A Case Study in Lampung Province, Indonesia. Asian Journal of Agriculture and Rural Development, 15(1), 1-10. doi: 10.55493/5005.v15i1.5275
Lestari, E. E., Hutabarat, S., & Dewi, N. (2015). Studi Komparatif Perkebunan Kelapa Sawit Rakyat Pola Plasma dan Pola Swadaya dalam Menghadapi Sertifikasi RSPO (Studi Kasus Desa Bukit Lembah Subur Kabupaten Pelalawan Provinsi Riau). Jurnal SOROT, 10(1), 81–98. doi: 10.31258/sorot.10.1.3206
Lifianthi, Oktarina, S., & Rosana, E. (2018). Analisis Produktivitas dan Pendapatan Kelapa Sawit Petani Plasma dan Swadaya di Sumatera Selatan. Agripita: Jurnal Agribisnis dan Pembangunan Pertanian, 2(1), 38–42. Retrieved from https://garuda.kemdikbud.go.id/documents/detail/1491984
Magbondé, K. G., Reilly, B., & Kauma, B. (2024). The Distributional Effects of Rural Electrification on Household Welfare: Evidence from Senegal. Utilities Policy, 91, 1-27. doi: 10.1016/j.jup.2024.101846
Miranti, A., Syaukat, Y., & Harianto, N. (2016). Pola Konsumsi Pangan Rumah Tangga di Provinsi Jawa Barat. Jurnal Agro Ekonomi, 34(1), 67. doi: 10.21082/jae.v34n1.2016.67-80
Nugroho, D., Maad, F., & Fitriani, A. (2024). Kesejahteraan Petani Sawit Roundtable Sustainable Palm-Oil (RSPO) Di KUD Mekarsari Kabupaten Musi Rawas Provinsi Sumatera Selatan. Jurnal Ekonomi Pertanian dan Agribisnis (JEPA), 8(3), 1146–1156. doi: 10.21776/ub.jepa.2024.008.03.27
Prasetyoningrum, F., Rahayu, E. S., & Marwanti, S. (2017). Analisis Pola Konsumsi Rumah Tangga Petani Jagung di Kabupaten Grobogan. Agric, 28(1), 41. doi: 10.24246/agric.2016.v28.i1.p41-54
Praza, R., & Shamadiyah, N. (2020). Analisis Hubungan Pengeluaran dengan Ketahanan Pangan Rumah Tangga Petani di Kabupaten Aceh Utara. Agrifo : Jurnal Agribisnis Universitas Malikussaleh, 5(1), 23. doi: 10.29103/ag.v5i1.2735
Purba, S. F., Witjaksono, J., Djaenudin, D., Taridala, S. A., Imran, I., Yulianti, A., Muslimin, M., Fadwiwati, A. Y., & Sitompul, R. F. (2024). Strategies for Improving Independent Oil Palm Smallholders’ Welfare in Konawe Regency, Southeast Sulawesi. IOP Conference Series: Earth and Environmental Science, 1379(1). doi: 10.1088/1755-1315/1379/1/012013
Riswani, Mulyana, A., & Tamba, M. G. (2017). Dampak Penurunan Harga TBS Terhadap Keberlanjutan Usahatani Sawit Ditinjau dari Tingkat Kesejahteraan Petani Swadaya di Kabupaten Musi Bayuasin Sumatera Selatan. Jurnal AGRIPITA, 1(1), 37–44. Retrieved from https://garuda.kemdikbud.go.id/documents/detail/1491964
Setyawan, H., Kurniawan, I., Setiawan, K., & Listianto, H. (2020). The Welfare Analysis of Oil Palm Smallholder Farmers in Pangkalan Banteng Sub-District, Central Kalimantan. Buletin Penelitian Sosial Ekonomi Pertanian Fakultas Pertanian Universitas Haluoleo, 22(1), 43. doi: 10.37149/bpsosek.v22i1.13292
Susilawati, Yurisinthae, E., & Kusrini, N. (2022). Analysis of Independent Pattern of Oil Palm Farmers’ Income in the Village of Sengahtemila Subdistrict Landak Regency. Jurnal Ekonomi Pertanian dan Agribisnis JEPA, 6(2), 670–680. doi: 10.21776/ub.jepa.2022.006.02.30
Syahza , A., ,Tampubolon, D., Irianti , M., Meiwanda, G., Asmit., B. (2023). The Impact of Small-Scale Oil Palm Plantation Development on the Economy Multiplier Effect and Rural Communities Welfare. International Journal Of Sustainable Development and Planning, 18(5), 1407-1415doi: 10.18280/ijsdp.180511
Udoh, E. J., Akpan, S. B., & Uko, E. F. (2017). Assessment of Sustainable Livelihood Assets of Farming Households in Akwa Ibom State, Nigeria. Journal of Sustainable Development, 10(4), 83. doi: 10.5539/jsd.v10n4p83
Utomo, R., & Siddiq, A. (2024). Regional And Intra-Regional Economic Analysis of Musi Rawas Utara District as An Oil Palm Producing Region in Sumatra Selatan Province. Jurnal AGRISEP: Kajian Masalah Sosial Ekonomi Pertanian dan Agribisnis, 23(1), 75–92. doi: 10.31186/jagrisep.23.01.75-92
Yanti, I. R., Nuraeni, N., & Rasyid, R. (2022). Analisis Pendapatan dan Tingkat Kesejahteraan Rumahtangga Petani Kelapa Sawit di Desa Pebatae. Wiratani: Jurnal Ilmiah Agribisnis, 5(1), 1. doi: 10.33096/wiratani.v5i1.84