INTERCROPPING OF SHORT ROTATION TREES SPECIES WITH THE OIL PALM (Elaeis guineensis Jacquin) PLANTATIONS: LESSON LEARNED FROM SMALLHOLDER FARMERS IN INDONESIA

The development of Oil palm plantations in Indonesia is often related to the deforestation issue because the expansion of plantations usually utilizes an area from native forest conversion. From a land coverage perspective, the total vegetation coverage after conversion is relatively unchanged on one hand, but conservationists insist that the environment quality is degraded on the other hand. Until recently, this issue remains debatable and the research which elaborates has not satisfied yet both parties. This paper aims to review theoretical arguments which support the implementation of Oil palm agroforestry practice as an alternative strategy geared towards economic growth and environmental maintenance. Equally important, the study is expected to enrich the references of future research concerning the dilemma between Oil palm and forest plantations industries or a combination of both trees and Oil palm intercrops. The study indicated that the Oil palm agroforestry system can create a balance between the conservation of the environment, community needs, economic benefit, and viability by designing a proper landscape. For Indonesia’s condition, a community involvement scheme is likely more proper to implement but needs government support such as a regulation. This model is recommended as a transitional option that can alleviate the poverty of communities in a neighboring plantation, at the same time can minimize environmental degradation.