DOI: https://doi.org/10.14710/jis.17.2.2018.128-144

Oil Palm Plantation Development Policy in Riau Province: An Overview of The Political Economy

*Auradian Marta orcid  -  Riau University, Indonesia
Leo Agustino orcid  -  Sultan Ageng Tirtayasa University, Indonesia
Utang Suwaryo  -  Padjadjaran University, Indonesia
Affan Sulaeman  -  Padjadjaran University, Indonesia

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Abstract

This study discusses why the impact of the policy of developing oil palm plantations by corporations in Riau Province is not felt fairly and equally by the community. This study uses a qualitative approach and meta-analysis with data sources from books, scientific journals, and mass media. Data is analyzed by interactive methods and supported by theory. The results of this study indicate that neoliberalism has had an influence on the policy of developing oil palm plantations in Riau Province. This neoliberalism practice can be seen from the policy of the development of oil palm plantations in Riau which are more impartial and benefit the corporation or the owners of capital than the people around the plantation area. This can occur because of the dominance of companies and corporations in relation to the regional government. Bribery is the way they use if the lobbies made against politicians and government officials have not succeeded in achieving the goal. The state becomes subordinate in its relations with the corporation, so what happens is corporate hegemony in the development of oil palm plantations in Riau Province.

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Keywords: corporations, oil palm plantations, neoliberalism, hegemony, political economy

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