Factors that Determine Reaction of Peasants to Newly Available Economic Opportunities : A Case Study from Advancement of Large-Scale Oil Palm Plantation Schemes in East Kalimantan, Indonesia

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This study examines the land conflicts that have occurred between large-scale oil-palm plantation schemes and local Dayak communities in the province of East Kalimantan, Indonesia. The reasons of the conflicts can be explained from two factors. First, since 1990s, local Dayak peasants have increasingly shifted from their traditional swidden rice farming to small-scale cash-crop plantations, such as cocoa and rubber. The increase in cash crop plantations in local farming has strengthened local awareness about the need for stronger individual landownership rights. Second, the oil palm plantation companies have violated local customary land use without gaining proper consent from local people. The state regulations that have obligated development companies to obtain consent from local populations have not properly functioned, because many companies gain permission for land appropriation only from local leaders who often do not consult with other members of the societies. In order to prevent land conflicts between development companies and local populations, it is imperative to build a third party monitored system that ensures participation of all members of the society in attaining agreement on local land use.