Socio-Economic Conditions Community on SISKA Development Area Individual Characteristics of

Proceeding of 2013 International Seminar on Climate Change and Food Security ISCCFS 2013 Palembang, South Sumatra -Indonesia, 24-25 October,2013 28 Farmer groups is a sum of farmers ranchersgrowers are formed on the basis of shared interests, equality under the condition of social, economic, resource and familiarity to improve and develop members [5] . Institutional farmers farmer groups has a function as a place of learning, a vehicle of cooperation, provider of tools and supporting unit production, unit production, processing and marketing units and supporting servises services [6] . The performance of an institutional system is the result of a complex process in a system of interaction. Institutional performance is determined by the pattern of interactions, that in the sistem was contained the action situation variable and the actors variable [7] . Institutional analysis is help to identify the constarins within organizations that can undermine policy implementation.The contrains may exist at the level of internal proceses , relationship concerns among organizatiom eg between ministries or be a product that the way the system is organized reporting hierarchies or operates the financial year is not folowed in practis and accaunt are not closed‖. Institutional analysis was studied the formal institutional as well as power of soft instrumentation on many levels, such regulations and power structure at various level [8] . Institution that related to Integration System of Beef Cattle and Oil Palm is the institution of farmer groups and cooperative. Institutional performance could be measured from two aspects, namely organization management and administrative management. Organisation Management of cooperative consisted of the establishment of the structure, the presence of members at the meeting, and the duty participation of tasks. While aspects of administrative management consisted of the meeting intensity, the existence of the principal books, supporting book, work plans, and facilities owned. Similarly, for the farmer groups performance, aspects of organizational management are working distribution, members task agreement, and the idea contribution for solving the problems . By knowing the potency and performance of institutions in the Integration Systems of Beef Cattle and Oil Palm, as well as faced the problems, it is expected to formulate a strategy to empowering the farmers through SISKA program for improving the national beef cattle population.

3. Method

The research was conducted at the around area of PT Andira Agro, at Kumbang Padang Permata village of Banyuasin I District, Banyuasin Regency, that all of farmer of palm oil population was had partnership with PT Andira Agro. The research was based on survey method, and simple random sampling. There are 30 farmer was taken as responden for representing of 350 oil palm farmers. Primary and secondary data was collected in July-August 2013. The data was processed and analyzed by tabulation and descriptive analysis for meeting the appropriate research objective. The measurement of institutional performance variable was done by assigning scores to the indicator variable, then analyzed descriptively.

4. Result and Discussion

4.1. Socio-Economic Conditions Community on SISKA Development Area

The village of Kumbang Padang Permata , Banyuasin I District, Banyuasin Regency, was located at 30 m above sea level, 60 km from the capital city of South Sumatra Palembang. It could be reached within 1.5-2 hours by speedboat, or 2 hours through land road by car. The villages was covering an area of 1485 hectares, consisted of peat land which was suitable for oil palm plantations. The majority 88.78 of land was used for agriculture, and 8.23 for the settlement, and the remaind area was for buildings, roads, cemeteries, and village economic activities. The population was amount of 1,221 people, consisting of 644 men and 577 women, with 350 families. The majority of the population is Muslim 99.4 . Supporting infrastructure development in this region were educational facilities consisted of one Elementary School, one Junior High School and one Senior High School. Places of worship was consisted of 4 mosques, 5 praying house, and 1 church. There was health facilities with one midwife, and the economic supporting service facilities consisted of 23 retail shoping house. Transportation sevices was taken care by sea transportation consisted of armpit ketek , boat and motor rivers , while rural transportation was taken care by bicycles, motorcycles, cars, and traditional transportation such as gerobak or modified special car for local and intern transportation in plantation area. 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

Plasma Farmer Oil Palm Plantation Majority of respondents farmers were migrants from Java Island. Respondents aged was 31-69 years with an average of 44.8 years. Most 66.7 of them had a formal elementary school, 73.7 experienced on palm farming more than 11 years, and all respondents 100 had the plantation land of 2 ha, but they never had experienced beef cattle husbandry business. Most of the oil palm production 70 at low katagori 30 -36 tonnesyear, and most of the revenue 60 was in moderate category Rp 38.75 million to Rp 44,192,983. The results show that allocation of working time for farming businesss of oil palm is low, namely 41.04 person-days per year for family working time alocation and 54.00 person-days per year for the outside family working time alocation. It means that there are a lot of free time that could be used for other activities. It is a high potential for development of SISKA program, where the remain working time of farmers could be used for beef cattle husbandry business. Proceeding of 2013 International Seminar on Climate Change and Food Security ISCCFS 2013 Palembang, South Sumatra -Indonesia, 24-25 October,2013 30

4.4. Institutional Performance