Productivity Degradation in Aging Smallholder Oil Palm Plantations: Policy Implications for Replanting Programs in Subulussalam City

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FORMOSA NEWS - Aceh - Aging Oil Palm Trees Cause Severe Yield Loss and Economic Strain in Subulussalam Smallholder Plantations. Aging oil palm trees are severely reducing crop yields and causing significant financial losses for independent smallholders in Subulussalam City, Aceh, according to a socio-economic study published in 2026. The research was conducted by Khalid Sunny from Universitas Sains Cut Nyak Dhien and Qhisthina Atikah from Universitas Syiah Kuala. Published in the Formosa Journal of Applied Sciences, the study reveals that palm trees past their prime operational age cause an annual revenue loss of IDR 12.61 million per hectare, threatening the economic resilience of rural farming households that depend on palm oil for their primary livelihood.

The findings come at a critical time for Indonesia’s agricultural sector, where independent smallholders manage vast areas of oil palm plantations but frequently face structural socio-economic constraints. In the Simpang Kiri District of Subulussalam City, many plantations were established decades ago during regional transmigration programs. Although total smallholder plantation land in Subulussalam slightly expanded from 19,014 hectares to 19,304 hectares, aggregate Fresh Fruit Bunch (FFB) production dropped from 29,120 tons to 28,800 tons. Simpang Kiri District experienced the sharpest decline, with annual production falling from 9,210 tons to 7,460 tons despite managing 4,894 hectares of land. This contraction highlights an urgent policy challenge: without timely replanting, rural communities face declining farm revenues that impair their ability to afford basic needs, healthcare, and education.

To analyze the socio-economic and agronomic factors behind this yield contraction, Khalid Sunny of Universitas Sains Cut Nyak Dhien and Qhisthina Atikah of Universitas Syiah Kuala carried out a quantitative socio-economic survey involving 98 independent smallholders in Simpang Kiri District. The researchers used simple random sampling across five primary plantation villages: Mukti Makmur, Makmur Jaya, Pasar Panjang, Tangga Besi, and Pegayo. Through structured interviews and field observations, the team gathered detailed data on farmer demographics, stand age structure, fertilizer use, labor inputs, seed origins, physical FFB yields, and net financial returns.

The empirical data gathered by the researchers demonstrate a dramatic decrease in agricultural output and farm revenue as oil palm trees enter their later biological phases:

• Intermediate Mature Phase (5–12 Years): Plantations in this phase achieved the highest physical productivity, averaging 19.91 tons per hectare per year, and generated an average revenue of IDR 49.17 million per hectare annually.
  
• Prime Mature Phase (13–20 Years): Trees maintained high output, yielding an average of 18.57 tons per hectare per year.
  
• Old and Senescent Phase (21 Years and Older): Productivity dropped sharply to 15.04 tons per hectare per year—a 24.5% yield reduction compared to the intermediate mature phase.
  
• Annual Revenue Opportunity Loss: Farmers managing old palm stands experienced a direct annual opportunity loss of IDR 12.61 million per hectare compared to those managing intermediate mature trees.
  
• Agronomic Bottlenecks: Approximately 44.9% of the surveyed smallholders used uncertified local seeds, while capital constraints prevented regular application of vital fertilizers like potassium chloride (KCl) and dolomite.
  

Biologically, oil palm trees older than two decades reach heights exceeding 12 meters, which impairs photosynthetic efficiency and nutrient transport. Taller trees also create severe harvesting challenges, leading to higher labor exertion, increased harvesting costs, and higher rates of uncollected loose fruits trapped in dense canopies.

The implications of the study extend directly to rural development policies and national agricultural sustainability initiatives. Khalid Sunny and Qhisthina Atikah emphasize that applying higher amounts of chemical fertilizers cannot restore senescent trees to peak productivity. Instead, accelerating the Smallholder Oil Palm Replanting Program (PSR)—funded by the Palm Oil Plantation Fund Management Agency (BPDPKS)—is the only structural solution to restore smallholder income and rural economic stability. To optimize the impact of the replanting initiative, the authors outline three main recommendations for policymakers and agricultural agencies:

• Facilitate Land Titling: The Subulussalam City Government and the National Land Agency (BPN) should deploy accelerated Complete Systematic Land Registration (PTSL) programs to assist smallholders in fulfilling BPDPKS grant land-ownership requirements.
  
• Strengthen Farmer Cooperatives: Local authorities must provide proposal-writing training and administrative support to smallholder cooperatives, enabling them to submit collective replanting applications.
  
• Institutionalize Sustainable Practices: Replanting programs must provide high-yielding certified hybrid seeds paired with extension training on Good Agricultural Practices (GAP) to prepare smallholder plantations for mandatory Indonesian Sustainable Palm Oil (ISPO) certification.
  

Author Profiles
Khalid Sunny is an agricultural socio-economics researcher at Universitas Sains Cut Nyak Dhien. His research focuses on smallholder plantation dynamics, farm economic resilience, and agricultural replanting policy formulation.
Qhisthina Atikah is a researcher at Universitas Syiah Kuala specializing in agribusiness management, rural socio-economics, and sustainable agricultural value chains.

Source
Khalid Sunny, Qhisthina Atikah. Productivity Degradation in Aging Smallholder Oil Palm Plantations: Policy Implications for Replanting Programs in Subulussalam City. Formosa Journal of Applied Sciences (FJAS), Vol. 5, No. 8, hlm. 1659–1670
DOI : https://doi.org/10.55927/fjas.v5i8.110
URL: https://journalfjas.my.id/index.php/fjas