Dissection of social interaction and community engagement of smallholder oil palm in reducing conflict using soft system methodology

2.1 Definition of soft system methodology

Conflicts arise because of incompatible interactions, differences in perceptions, or differences in views of two or more individuals, organizations, and stakeholders [37]. However, there are more than one interactions, views, and backgrounds that cause conflict to become a complex problem that needs to be resolved when viewed from a system perspective. The system is a concept created to facilitate understanding of something. Phenomena that exist in the world can be described as a part that cannot be broken down into different parts; this perspective is well known as system thinking [38]. System thinking leads to the thinking of real social systems that exist globally, while the assumption of social construction in the world is systemic. The thinking system is a dynamic system; this system studies phenomena in the real world by forming a model for conducting an intervention [39]. Research involves three elements, namely, (1) ideas that are connected into a framework, (2) application of ideas in methodology, and (3) application of methodology [40]. Checkland introduced research methods such as HSM and soft system method (SSM) [40]. This methodology is also called intervention, which identifies the problem and draws the final solution to achieve the desired condition. The challenge faced in this research is finding a suitable or efficient way or method to achieve the predetermined goals.

The system categorizes human problems into two categories – visible problems (expressed) and problems that are not visible (implied). Problems that appear real and can be formulated using a clear and structured method are called hard problems. This characteristic problem uses HSM. The HSM system includes a clear and unambiguous system that indicates that there is no difference of opinion regarding the issue. HSM is usually used to deal with physical environmental problems, namely, problems that do not change [40]. The unrealistic problems with unclear and unstructured methods are called soft problems. In this case, SSM is used as the solution method [40]. There are differences in the perspective of the problems on the SSM of each party where organizational problems are more suitable to be resolved using the SSM method rather than HSM. HSM and SSM have several differences, as presented in Table 1.

Since the HSM method cannot solve complex problems, the development of the SSM method is crucial. Problems that are not clear as to which party caused it and the inability to determine objectives can be resolved by using the SSM method. The SSM method is also commonly used to determine problems whose variables are not clearly known. SSM does not limit certain variables but it identifies variables related to the system as many as possible to complete the information obtained. From these variables, a simplification will be made to make the model easier. SSM is used to define the problem clearly so that decisions can be taken and describe the actors involved to reveal relevant objectives for each stakeholder [41]. Therefore, the method used in this research was SSM. Problems that have not been clearly delineated require extra effort in their exploration. In-depth interviews were carried out to find the problems that occur. This process aims to obtain formation from relevant sources.

SSM is a method of comparison between the real-world situation and the system relevant to achieve predetermined goals [42]. Comparison of the model against the situation will result in according to research questions that meet systematically desirable and culturally appropriate criteria. There are several stages in SSM. From these stages, a description or a model of the problem that occurs will be produced. Figure 2 describes that the resulting model must match the model that occurs in the real world so that solutions to the problems can be found [43]. The search for goals using models is obtained from human behavior that comes from perception. This model represents the embodiment of the views of the parties related to the perceptions of each party.

Figure 2

Soft system method is described in the form of a seven-stage model [43].

SSM can be used to solve problems, including energy efficiency [41], climate science [44], technology [45], environmental [46], social or human [47,48]. Hardjosoekarto has made the application of SSM in the social development index [48]. His research was carried out by using action research based on SSM. SSM is used to achieve the goals of overcoming social complexities in the social development. This research was related to the engagement of the informal merchant sector. The analysis of research is carried out not only through social analysis but also through cultural and social processes to promote informal traders.

SSM is often used to resolve conflicts. Hersh used the SSM method for conflict resolution [49]. Hersh stated that conflicts between two parties are sometimes difficult to determine which party is right and wrong because conflicts occur in different perceptions of polarized events [49]. Individuals will tend to view conflict subjectively, where one party with another party has a different view regarding the conflict’s causes. Conflicts occur because of the distrust, misunderstanding, and hatred of both parties. The long-running conflict makes resolving it more difficult. Through the SSM stages, Hersh stated that researchers must avoid being depicted as the real world to resolve conflicts at the conceptual modeling stage [49]. It requires crucial information such as the conflicting parties’ processes and power relations, outside interference, or the possibility of other personal interests.

4.1 Stage 1: Understanding the problem situation

The plantation subsector has a vital role in the economy where 10.97% contributes to the national gross domestic product (GDP) [51]. Oil palm plantations in Indonesia are generally run under a partnership system. The partnership system is carried out using a system of handing over land to the company. It will be then managed by the company based on an agreement between the company and the community. The agreement, in this case, stated the ownership, location, and land area boundaries. This statement is in accordance with the source who stated the following:

“The partnership land system is carried out with the provision of the community that gives 1,000 ha of land area in the agreement between the company and the community under the consideration that the company has the capital, while the community has the land, as an initial agreement between plasma land nucleus lands. Sidomujo village handles more than 1,000 ha of the land area, meaning that 300 ha of which is the plasma land. Meanwhile, 700 ha of nucleus land are fully managed by the company, including equipment, maintenance, and harvesting.” (M, 34 years, Company B).

The agreement between the company and the local community is made in a written form, accompanied by the authorities, such as customary leaders, subdistrict heads, regents, and the forestry offices. The land acquisition process is carried out legally by the company by fulfilling the Business Use Rights (HGU) to prevent mistakes or things that are bordered by community lands or people’s inherited lands. This statement is based on the narrative of one of the following sources:

“The first process of land acquisition is the legality process, which in this case is HGU, the company has fulfilled the HGU. then, based on a limited meeting, the land acquisition will be carried out, so that there is no mistake or border with the residents’ land or land inherited by residents” (R, 32 years old, Company A)

The partnership system and the land legality process become the basis for conflicts between smallholders and companies to resolve and prevent conflicts related to land, both of which are important to understand. Land conflicts that occur are caused by ambiguity or overlapping regulations [52]. Clearing land for oil palm must go through several formal procedures, namely, applying for permits from the government to carry out cultivation businesses. Through the decentralization process, the local governments can handle licensing authority. An easy-to-pass land clearing procedure makes it easier to clear land for oil palm. However, it complicates the conflicts between local communities and companies. Even though there is decentralization, solidarity in granting oil palm cultivation permits to minimize conflicts is also necessary. In summary, the land conflicts between the company and the local community are complicated because of the legal permit proposed by the company. Unfortunately, local communities do not have evidence that they have rights to the conflict land. In this type, the conflict does not merely happen between the company and the local community, but does happen between the local community and the company, which is supported by legal evidence from the government.

A study was conducted on land conflicts in Jambi related to the conflict between one of the oil palm plantation companies and the surrounding community. This conflict has been going on for 7 years; however, there has been no solution obtained until 2020. The conflict has even spread to WALHI and companies that receive oil palm plantations.

The environmental problems caused by several companies occurred around 2017–2018. These happened due to activities carried out by several companies, which pollute the rivers surrounding. Another cause of conflict is differences in the perceptions of individuals. Revenue from oil palm depends on the perception of the number of ecosystem services and the impact of present and future expansion [12]. If the community feels no ecosystem services, then this will lead to conflict.

This conflict was resolved through mediation in several stages with community leaders, youth and affected communities, and the company. The mediation resulted in a build around 2–3 points water well related to water from Drinking Water Company (PAM). That is in accordance with the source’s statement as follows:

“Yes, mediation has been conducted several times, I am not sure how many times, I was involved a lot. the results of mediation were to drill well which flowed to the houses. there was one point well for RT 05 and RT 09, and 1 point too in the other area, there were few points around the area that affected it.” (H, 25 years old, smallholder oil palm in Sukadamai).

Another condition that triggers conflicts among planters, companies, and the government is the high price of fertilizer, which is not affordable for the farmers, as well as the low price offered by toke. Toke is a middleman, or parties, who buy products from farmers and sell them to other parties, including processing factories, through licensed parties. This terminology is sometimes negative because it creates less controllable prices. Those problems were complained of by independent smallholders of oil palm in Sukadamai. Toke’s determination of oil palm price was deemed inappropriate because many of the deductions were caused by other costs imposed on the landowner. In addition, transportation is also a problem for smallholder oil palm in Sukadamai. This statement is supported by the source statement as follows:

“If we can afford the toke because of its expensive price, what can we do then? We understand the problem must be that there are other costs when we sell the palm fruit, so the price does not match… like it or not, the price will definitely be cheaper, and the only solution is to sell it to the toke… the problem is that we do not have vehicles for transportation.” (K, 25 years old, a smallholder of oil palm in Sukadamai).

Dealing with this issue, it can be seen that there are conditions of the social and economic gap in local communities, which can be a trigger for conflict between local communities and companies. This is also supported by the condition; smallholders do not feel that government intervention has provided the assistance for them. Our interview results showed that the smallholder oil palm does not feel that government interference has had much impact on them because they still have difficulty accessing information related to fertilizer subsidies.

Smallholders expect government intervention through engagement to reduce land conflicts. Regulation of the Minister of Agriculture, Number 18 of 2016 concerning Guidelines for Rejuvenation of Oil Palm Plantations Chapter III, contains Smallholder Institutions’ Development, and Regulation of the President (PERPRES) Number 44 of 2020 concerning Indonesia’s Sustainable Oil Palm Plantation Certification System, and Regulation of the Minister of Agriculture, Number 38 of 2020 concerning Implementation of Indonesian Sustainable Palm Oil Plantation Certification. The regulation states that smallholder needs the training to implement the Rapid Rural Appraisal (RRA) and Participatory Rural Appraisal (PRA). The expected goal is an opportunity to solve problems faced by smallholders.

Moreover, independent smallholder oil palm feels that engagement needs to be done as learning for them. Engagement efforts can be made through training in nurseries and plantation management. It is necessary to do, so that smallholder’s oil palm understands the problems related to oil palm plantations and do not experience stock problems or other conflicts. This statement was supported by sources as follows:

“What I expect as a smallholder, from the company, the village government, and related parties in the stakeholders is a good cooperation and good communication, as well as an institutions that provides education to smallholders as many smallholders do not understand good management of oil palm planting. Therefore, it is necessary to set up the institution for that purpose… This will provide information we need as the community here. It is useful for us to understand conflict resolution… Smallholders empowerment is also essential. Institutional management and community awareness will have a positive impact for us.” (H, 25 years old, smallholder oil palm in Sukadamai).

4.2 Stage 2: Disclosure of the problem situation

Regarding the management of oil palm plantations, the community is generally involved by considering several qualifications. The process of selecting people to participate is carried out under procedures and selected according to company needs. In addition to the company’s smallholders, there are independent oil palm smallholders who own the land and work privately for 5–7 years. The average land owned by oil palm smallholders is 1–3 ha to be managed alone or jointly with their families.

Most conflicts between companies and smallholders occur due to land boundary disputes, illegal acts, and lack of socialization [53]. Land boundary disputes are related to agreements made before plantation production, i.e., when one of the parties does not fulfill their obligations under the agreement (Figure 4). Land conflicts are the most common agricultural conflicts between companies and smallholders. Land conflicts occur when farmers feel pressured and have no other choice but to sell their land to the company. The purchase of land by companies from the community not only provides economic benefits but also creates several problems. Not all costs involved in purchasing land are included in a written agreement; there is also deception and poor demarcation [54]. Small farmers are weak in terms of capacity, power, and land tenure.

Figure 4

Rich picture.

In the process of conflict resolution, mediation and negotiation can resolve the conflict. However, the method does not prevent the conflicts from occurring again. In the end, a similar pattern will always occur. The empowerment communities and social interactions in mediation and negotiation do not yet have the power to transform each stakeholder’s perspective, culture, and view, so that each stakeholder can work together and harmoniously. Thus, some activities, programs, or policies are needed to transform that condition, especially to transform a balanced capacity and power between the company and the local community.

4.3 Stage 3: Root definition of relevant situations

Stage 3 is undertaken by making RD based on a rich picture in stage two. Root definitions are prepared using the PQR formula according to Checkland and Poulter as follows: The PQR formula: do P, by Q, to help achieve R. [55]. PQR does not stand alone but has a special meaning [55].

Based on the results of stage 1 and 2 analyses, it can be concluded that a program focusing on smallholder oil palms is needed to prevent and resolve conflicts. With the help of each actor, this program can be realized by the government, plantation cooperatives, companies, and community leaders. The potential for increased oil palm allows for an increase in the conflict [56]. The initial phase of the conflict between the local communities and the company is a company that the company has obtained a business license for oil palm cultivation. Conflict is caused by differences in the parties’ perceptions of the situation [57]. The problem is that the conflict is very complex and unstructured. Thus, more participation from all parties is required if there are differences in economic opinion, access to information, behavior, or conflict behavior between the two parties [10].

The lack of communication between the government, companies, and smallholders has emerged the conflict. Besides, the knowledge and understanding of smallholders on the process of oil palm plantations and the oil palm industry results in smallholders’ insufficient strength to defend their rights in their interactions with other stakeholders. Therefore, programs to prevent and resolve conflicts are one of the ways to improve communication among the company, government, and smallholders, as well as increase the knowledge and understanding of smallholders in the oil palm management process. Thus, the root definition of this problem is that the system owned and operated by the government is need to improve the quality of smallholder oil palms (P) through social interaction and community engagement (Q) so that the smallholders understand the management of oil palm plantations ®. Root definition is controlled by using CATWOE analysis shown in Table 3.

Smallholders, companies, and the government are stakeholders who are interconnected or mutually dependent. Therefore, every decision and process carried out by the three stakeholders can cause conflict among stakeholders. Ganson stated that conflict cannot be resolved without the involvement of all stakeholders [58]. Communities have different levels of conflict vulnerability depending on the extent to which they depend on the natural environment for their livelihoods [59] about natural resources and ecosystem services. The key to understanding and resolving a conflict is by determining its causes, which can lie in the information provided or in excess of resources, relationships, interests, structures, and values. This form of understanding can be done through community involvement to attract and involve community opinion and participation, which is not only in the communication process in mediation or conflict negotiations but also by proactive involvement or collaboration in the process of achieving common understanding and decisions [37,60,61]. One of the collaborative activities can be carried out in training since training is a form of communication and interaction between stakeholders [62]. Conflict management is also included in increasing competence, motivation, knowledge, and skills constructively and continuously [63]. Smallholders’ position is still considered weak among oil palm plantation stakeholders and it makes smallholders as the subject of the program.

In production efforts, the company is responsible for minimizing the risks of the surrounding community’s safety problems and environmental impacts. Companies can increase social acceptance while minimizing the risk of conflict. Social acceptance is used in the formulation of strategies to foster sustainable oil palm. One of the efforts that can be made to increase social acceptance is to carry out a CSR program. The CSR program also has the function to increase company activities and minimize social conflict [56]. CSR can strengthen the relationship between the community and the company, mutually beneficial relationships, and minimize conflicts [64]. Companies give CSR to society as a form of corporate responsibility.

4.4 Stage 4: Conceptual model

The conceptual model is formed by considering the complexity of the real world through the interaction of several different aspects [65]. The conceptual model formed in the RD 1 system was in accordance with the Regulation of the Minister of Agriculture No. 18 years 2016. It will be realized with the support of systems thinking that forms a conceptual model, as shown in Figure 5.

Figure 5

Conceptual model based on RD 1.

The conceptual model produced in stage 4 of this research is formed through several considered aspects. Efforts to reduce conflicts begin with social interaction and community engagement through approaches among the government, companies, and smallholder oil palms as a form of social interaction and training, as stated in the Minister of Agriculture Regulation No. 18 of 2016 concerning Guidelines for the Rejuvenation of Oil palm Plantations in Chapter III, namely, the development of smallholder institutions as an engagement effort. Both of these efforts are believed to be able to reduce conflicts because these efforts can build interactions between each actor. Furthermore, palm oil smallholders will be supported by the government through the knowledge on the management of oil palm plantations. Through this effort, hopefully, conflicts will be gradually decreased and the quality of smallholder palm oil will improve.

The need for research, explanation, and implementation has a correlation to policies. Therefore, the obligations and rights between smallholders of oil palms and plantation companies do not lead to oil palm conflicts. This is supported by those who stated that the existence of actor contestation, inconsistencies in regulations, and changes in society’s social structure are part of the factors that lead to conflict trends [66].

4.5 Stage 5: Comparison between the conceptual model and the real world

The comparison undertaken at this stage is intended to reflect the conceptual model’s activities to formulate concepts. The comparison of the conceptual model and the real world is presented in Table 4.

Table 4 shows that no action has been taken regarding the proposed model of the RD1 process in resolving the oil palm plantation conflict problem. The five model activities formulated in actual conditions are only the process of training activities that are carried out but have not been yet completed. Therefore, efforts and support are still needed to realize that the conflict management model can be implemented. The implementation of the conflict management model must be carried out not only by companies or the government but also by all stakeholders. Therefore, local community involvement in the government and companies’ collaborative programs is an important factor in realizing conflict management. Based on the data in Table 4, actions that can be taken to realize the conflict management process based on RD1 are presented in Table 5.

4.6 Stages 6 and 7: The desired model change and action to improve

After conducting the comparison between the conceptual model and the real world in the previous stage, at stage 6, the desired changes are defined. The desired transformations are presented in Table 5.

Conflict is part of the social sector. If the conflict is protracted, the social sector of oil palm activities cannot run well. This conflict will affect production activities and cause a decrease in the number of products, which will harm both the company and the community due to a lack of renewable resources. Social sustainability is influenced by the surrounding community [67], and hence, it requires immediate conflict resolution. The existence of conflicts can raise concerns about the threat to sustainability in the industrial sector. Three main sectors describe sustainability: economic, social, and environmental [68]. The social impact of conflict can affect individuals, families, communities, or even countries [27]. There are several studies on natural resource conflicts, including Peace and Conflict Impact Assessment (PCIA), Environmental Conflict Resolution (ECR), Environmental Conflict Management (ECM), political economist, peace studies [27].

Natural resource conflicts are very complex; this makes conflict resolution very difficult [5]. The conflict that occurs is influenced by the level, intensity, and duration of the conflict [10]. The influence of geographic scale and the number of people affected is part of the conflict level that occurs. Meanwhile, the intensity is related to the land use. The duration of the conflict is related to the development of the conflict from year to year. Conflict will always exist in human relations and cannot be avoided. It only takes control to manage the conflict so that it does not become a significant problem and cause big money impacts. It is necessary to have appropriate conflict management to deal with the conflict. Nothing is the same in the management process between conflicts with one another because each conflict has its uniqueness. There must be a holistic integration of every law and policy to resolve conflicts [69].

This study also addressed suggestions and recommendations to the Jambi Provincial Government. The results of this study show that smallholder oil palms in the research location are cooperative and interested in training and community empowerment. In this article, the point of community empowerment is in the terms of increasing the community knowledge about oil palm plantation. The knowledge includes the harvesting process, land management, and conflict resolution. The policy on training has been stipulated in the Regulation of the Minister of Agriculture of the Republic of Indonesia No. 18 of 2016 concerning Guidelines for the Rejuvenation of Oil Palm Plantations in Chapter III, namely, the institutional development of smallholders. The policy is needed to be studied so that training can be carried out to reduce oil palm conflicts. This study has answered its purpose to reduce oil palm conflicts. Synergy among the government, smallholder oil palms, and especially with oil palm companies is required.

Therefore, involving the community, especially smallholders in training, can be an investment in improving communication between companies, government, and communities. The involvement of the community process can be a part of the CSR process of companies and social investment. One of the engagement interventions that can be carried out is through training programs for actors. That is in line with the thinking of independent smallholder oil palms who feel that engagement needs to be done for smallholder oil palms as a learning effort. Engagement efforts can be carried out through training such as nurseries and plantation management. This is necessary so that smallholder oil palms understand the problems related to oil palm plantations. Therefore, they do not experience stock problems or other conflicts. Economic engagement can also be done by leading to a better economic process for smallholders. Increasing welfare, knowledge, and skills from smallholders can be one of the social interventions that can be carried out in conflict resolution and postconflict resolution. In balance, the cooperation carried out will provide long-term benefits as a form of social interaction. Thus, in addition to government programs that can also run properly, smallholder oil palms and parties related to oil palm plantations should understand the management of oil palm plantations well so that oil palm conflicts can be gradually decreased.

Education and training provide knowledge and awareness to smallholder oil palms about conflict and the oil palm processing process. Economic engagement can lead to a better economy for smallholders. Increasing the welfare, knowledge, and skills of smallholders is one of the social interventions that can be carried out in the process of conflict resolution and postconflict resolution. Engagement activities can provide real change in life at the individual and community levels [70]. This can be a social capital to encourage networks with markets, political systems, and civil society in resolving these land conflicts [71]. In postconflict realities, reframing citizen engagement through participatory communication into a development approach allows us to rebuild peace from the ground up and place local communities’ voices at the center of the reconstruction process [72]. Therefore, smallholder empowerment plays a very important role in bridging government administrators’ perspectives with citizens and between groups of citizens. Conflict resolution must be carried out fairly. Environmental justice is about place-based conflict and applies to transnational and structured patterns of inequality globally. Environmental justice is related to climate justice, energy justice, transportation justice, food justice, and social justice [73]. The environmental justice to be achieved in this research covers the sub-disciplines of economics, law, and social interaction with other sciences such as sociology, philosophy, science, and technology.

Therefore, social intervention in conflict resolution is needed not only in the aspect of mediation but also in the form and aspects of the economy, policy, security, governance, political technology, reconciliation, community-based development, and media and communication [74,75]. Social interventions aim to prevent, correct, or alleviate imbalances in the interaction of people, families, and communities [74]. Social interventions can provide a framework for the source and transfer of knowledge [76]. In the oil palm conflict context, one of the parties that can help the intervention process is the smallholder. Engagement of smallholders is a part of the intervention process in the form of training to provide enthusiasm and information to the community, management, human resources, as well as with critical players from trade unions. Competency training, especially training in social dialogue at the individual, team, and organizational levels, is considered one step to prevent conflict [77].