Performance of PT Agro Andira The Partnership of PT Andira Agro with The Farmer’s

Proceeding of 2013 International Seminar on Climate Change and Food Security ISCCFS 2013 Palembang, South Sumatra -Indonesia, 24-25 October,2013 29

4.2 . Potency and Institutional Performance at SISKA Area

Potential and development of SISKA research area could be seen by performance of the of oil palm plantations PT Agro Andira, performance of Cooperatives Institution and perperomance of farmer groups.

4.2.1. Performance of PT Agro Andira

PT Agro Andira was an oil palm plantation company, located in Dusun Teluk Naning, Karang Anyar Village, Muara Padang District of Banyuasin Regency, South Sumatra. The company was initiated to construct at 1995 with a land area of 21,750 m² and building area of 345 m². The core plantation area of PT Agro Andira was 5033.85 hectares, while the area of plantation society namely plasma was about 4,000 ha. In addition business of oil palm cultivation, the company of PT Andira Agro was also developing the beef cattle husbandry business.

4.2.2. The Partnership of PT Andira Agro with The Farmer’s

Plasma Implementation of the partnerships was aimed to solve the limitations of capital, lack of technology, marketing guarantee, increase the farmers income, and also had benefited others in partnership. The greatest souerce of motivation for farmers to participate in the partnership was assured marketing, provided seeds, fertilizers, pesticides, coaching or companion, and the types of high productivity plants. Knowledge of farmers was also determine how to accept innovation partnership that will be implemented, of course, it was espected the benefit from the partnership. According to Purnaningsih 2006, the knowledge of the partnership consisted of the type of plants, cultivation techniques, the parties and characteristics of partner, partnership rules or procedures, and sanctions implementation. The partnership between PT Andira Agro with farmers are partnering of Nucleus-Plasma. Plasma plantation that joint to the partnership PT Andira Agro consisted of five villages with four transmigration villages namely Kumbang Padang village, Sido Makmur village, Tirta Makmur village and Panca Mulya village, and one local resident village namely Karang Anyar village. The main requisite for farmers is an honest, reliable, able to work in the team, providing land, and are willing to sign the partnership agreement. While PT Agro Andira as core provides the means of production seeds, fertilizers, pesticides, capital, technology and marketing of products ensures crops. The early farmers clearing land was on 2001. The capital lent to farmers was issued on 2002 by PT Andira Agro, and on 2007 was issued bythe Bank, the amount of Rp 52,000,000.00, respectively, per farmer for clearing land area of 2 hectares. The farmer groups plasma of PT Andira Agro was grouped by plantation based plots. There are 13 farmer groups with the members about 26-30 people per group. Farmer groups regularly hold meeting at least once a month, to provide input and solve problems. They implemented the custom habit that the plantation was managed by the groups management, where the nature of mutual helping was running well. The partnership of farmer groups with PT Agro Andira was also running well. The production of TBS original palm oil fruit of farmers groups plantation was as much as 2-3 tons per month per heactares, with an average price of USD 1300.00, including transportation costs as much as USD 45.00 per kg. Income earned by farmers yield per plantation plot was about Rp 2,000,000.00 - Rp 3.500.000.00.

4.3. Individual Characteristics of