Conflict dynamics in the palm oil core-plasma partnership: A study on inequality and social tensions

Abstract

This study is driven by the presence of structural conflict and explicit inequality in the implementation of the palm oil core–plasma partnership between the Karya Jaya Dua Village Unit Cooperative (KUD) and PT Gemareksa Mekarsari in Menthobi Raya District, Central Kalimantan. The research aims to analyze the partnership mechanism, identify the sources and dynamics of conflict, and describe the efforts made to resolve them. Using a descriptive qualitative method and an intensive case study approach, data were collected through in-depth interviews with five key informants representing the cooperative, the company, village authorities, and plasma farmers. The analysis draws on Ralf Dahrendorf’s Conflict Theory to explain power imbalances and Dunlop’s Industrial Relations Theory to explore cooperation dynamics. The findings reveal that conflicts stem from unequal power relations, land issues that are more economic than legal in nature, and an unclear revenue-sharing scheme initially promised at 20% of business profits. Additional problems include the failure to meet the 1,200-hectare land management target, infrastructure realization reaching only 11.44%, and unresolved land certification. Tensions peaked when transparency declined regarding the payment of the Residual Production Result (RPR) for three consecutive months, further weakening farmers’ bargaining position due to their financial dependence on the company. Mediation and deliberation efforts have not addressed the underlying structural issues. The sustainability of the partnership depends heavily on transparent management—especially in financial distribution—balanced power relations, and strengthened cooperative institutions. The study recommends a comprehensive review of the cooperation agreement and capacity building within the KUD to support a more equitable and sustainable core–plasma partnership.