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Agricultural land use alternatives in regional planning : a case study of West Pasaman area development… Pandjaitan, Sarda Vincentius 1982

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AGRICULTURAL LAND USE ALTERNATIVES IN REGIONAL PLANNING: A CASE STUDY OF WEST PASAMAN AREA DEVELOPMENT PLANNING WEST SUMATRA - INDONESIA  by SARDA VINCENTIUS Ir.,  PANDJAITAN  U n i v e r s i t y o f North Sumatra (USU),  1969  A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE  in THE FACULTY OF GRADUATE STUDIES (School o f Community and Regional  Planning)  We a c c e p t t h i s t h e s i s as c o n f o r m i n g t o the  required standard  THE UNIVERISTY OF BRITISH COLUMBIA April, @  1982  Sarda V i n c e n t i u s P a n d j a i t a n ,  1982  In p r e s e n t i n g t h i s t h e s i s i n p a r t i a l  f u l f i l m e n t o f the  requirements  f o r an advanced degree a t the U n i v e r s i t y o f B r i t i s h C o l u m b i a , I agree t h a t the L i b r a r y s h a l l make i t and s t u d y . of this  freely available for  I f u r t h e r agree t h a t p e r m i s s i o n f o r e x t e n s i v e  copying  t h e s i s f o r s c h o l a r l y purposes may be granted by the Head  o f my Department o r by h i s r e p r e s e n t a t i v e s . copying o r p u b l i c a t i o n o f t h i s  thesis for  It  Department o f Community and Regional P l a n n i n g The U n i v e r s i t y o f B r i t i s h Columbia 2075 Wesbrook P l a c e V a n c o u v e r , Canada V6T 1W5  A p r i l IS,  1982  i s understood t h a t  financial  a l l o w e d w i t h o u t my w r i t t e n p e r m i s s i o n .  Date  reference  gain s h a l l not be  i i  ABSTRACT  T h i s t h e s i s i n v e s t i g a t e s the problems i n v o l v e d i n determining appropriate  use  of agricultural  land i n i t s r e l a t i o n  to r e g i o n a l  the  planning.  For the purpose o f t h i s i n v e s t i g a t i o n , the West Pasaman Development Plan has  been chosen as a case study.  was  drawn up by the I n s t i t u t e  The  these  developed  The  The  team proposed f i v e  crucial  main road and  Two  an o i l palm s m a l l h o l d e r  f o r the o i l palm s m a l l h o l d e r p r o j e c t was  economic c r i t e r i a .  Two  important  based upon  a s p e c t s were  ignored.  F i r s t , the p h y s i c a l c h a r a c t e r i s t i c s o f the s i t e , i n c l u d i n g water were not a s s e s s e d , not  and  secondly  resources,  the needs o f the e x i s t i n g p o p u l a t i o n were  considered.  In t h i s  t h e s i s , three  s i t e , the s o c i a l  aspects  chosen as the c r i t e r i a tural  land.  The  utilized.  The  f a c t o r s , the p h y s i c a l c h a r a c t e r i s t i c s o f the  o f the p o p u l a t i o n and  i s on  i s made up o f two  agricul-  parts.  The  first  second p a r t , c o n s i s t i n g o f 11,000 h e c t a r e s , i s p r i v a t e and  f o r the e x i s t i n g l a n d use this  use o f the  i s government l a n d which, at p r e s e n t , i s under-  communal l a n d run by s m a l l h o l d e r s . account  economic f e a s i b i l i t y were  to determine the a p p r o p r i a t e  area o f i n v e s t i g a t i o n  p a r t o f 13,000 hectares  it  of  priority.  priority  conventional  study  w i t h i n a ten y e a r p e r i o d (1975-1985).  f i v e p r o j e c t s , i . e . , a new  scheme were given  f o r West Pasaman  f o r Development Research--IDR, a c o n s u l t i n g  f i r m from West Germany, i n 1975. p r o j e c t s to be  Development Plan  area,  The  study  of this  team's r e p o r t f a i l e d  11,000 h e c t a r e s  o f l a n d t h a t the i n v e s t i g a t i o n has  and  to  therefore  concentrated.  i i i  It  is  found t h a t the l a n d b e i n g s t u d i e d i s p h y s i c a l l y s u i t a b l e  rice cultivation.  O i l palm c u l t i v a t i o n  does not appeal to the  i n the s t u d y a r e a because they are u n w i l l i n g to move i n t o new  for  farmers cultivation  p r a c t i c e s as they f e e l s a f e r growing r i c e and o t h e r crops w i t h which they are f a m i l i a r . government p r o j e c t Indonesian n a t i o n a l  It  seems an i r r i g a t i o n  f o r the s t u d y a r e a .  p r o j e c t i s the most d e s i r a b l e  T h i s would appear to  confirm  g o a l s , which emphasize s e l f - s u f f i c i e n c y i n  food  production.  If  the a v a i l a b l e water r e s o u r c e s o f the study area (the Batang  Tongar R i v e r ) c o u l d be f u l l y  utilized, it  i s found by u s i n g economic data  on r e t u r n s per h e c t a r e per y e a r , t h a t double c r o p p i n g r i c e w i t h new h i g h y i e l d i n g v a r i e t i e s woul d y i e l d a h i g h e r r e t u r n to the farmers than palm.  Thus, i t  i s c o n c l u d e d t h a t wet r i c e a g r i c u l t u r e  would be a more e f f e c t i v e  (double  oil  cropping)  use o f the 11 ,000 h e c t a r e area than o i l  palm.  The t h e s i s emphasizes t h a t the p h y s i c a l c h a r a c t e r i s t i c s o f the and the s o c i a l a s p e c t s must be c o n s i d e r e d i n d e t e r m i n i n g the use o f a g r i c u l t u r a l  site  appropriate  l a n d i n a d d i t i o n to the economic c r i t e r i a .  The  t h e s i s c o n c l u d e s w i t h the d i s c u s s i o n o f the m e t h o d o l o g i c a l l i m i t a t i o n s  of  the s t u d y and makes a p l e a f o r r e g i o n a l p l a n n e r s to u t i l i z e some o f the new i d e a s o f "development from below" and i n t e g r a t e d r e g i o n a l  development  iv  TABLE OF CONTENTS  CHAPTER I:  CHAPTER I I :  INTRODUCTION 1.  Background I n f o r m a t i o n  2.  Problem Statement  3.  The O b j e c t i v e o f the Study  4.  The S i g n i f i c a n c e o f the Study  5.  Methodology  THE THEORY OF DEVELOPMENT: REVIEW  A LITERATURE  1.  Introduction  2.  B a l a n c e d Growth Theory  3.  Unbalanced Growth Theory  4.  V i a b i l i t y o f Modern Economic Theory in Developing Countries  5.  Alternative  6.  C o n c l u d i n g Remarks  o f Development S t r a t e g i e  CHAPTER I I I :  THE THIRD FIVE YEAR DEVELOPMENT PLAN (REPELITA I I I ) , 1979/80-1983/84 AND REGIONAL DEVELOPMENT PLANNING IN INDONESIA  CHAPTER I V :  WEST PASAMAN AND ITS CRUCIAL PROJECTS 1.  Socio-cultural  Patterns  2.  Economic P a t t e r n s  V  Page  CHAPTER IV CONT.  CHAPTER V :  CHAPTER V I :  3.  B a s i c Food Needs o f West Pasamanians  62  4.  Crucial  67  Projects  THE RESULTS OF THE STUDY 1.  Introduction  77  2.  Physical Characteristics  78  3.  Socio-cultural  85  4.  Economic Aspect  Environments  103  DISCUSSION AND CONCLUSION 1.  Introduction  114  2.  Discussion  115  3.  Conclusion  127  APPENDIX 1:  FARMERS' QUESTIONNAIRE  132  APPENDIX 2 :  WALINAGARIS' QUESTIONNAIRE  137  BIBLIOGRAPHY  140  vi  LIST OF TABLES  Page  TABLE 1  Imports o f B a s i c  TABLE 2  Central  Budget  Food, 1968-1978  Government C o n t r i b u t i o n  14  to Development  (1973/74 to 1978/79)  48  TABLE 3  P o p u l a t i o n o f West Pasaman by N a g a r i , 1979  TABLE 4  Area H a r v e s t e d , Y i e l d Rate and T o t a l in  Rice Paddies i n West Pasaman  65  Production  (1979)  66  TABLE 5  Land Use o f the Study Area  79  TABLE 6  Kenagarian ( s u b - v i l l a g e s ) and P o p u l a t i o n o f 16 Desas A f f e c t e d by the Proposed Batang Tongar Project  83  TABLE 7  F a r m e r s i O p i n i o n on The Ophir O i l Palm P r o j e c t  90  TABLE 8  Farmers Who  Have Seen O i l Palm Trees  91  TABLE 9  Farmers Who  Want t o Grow O i l Palm on T h e i r  TABLE 10  1  Farms  92  Farmers' Response t o the Ophir O i l Palm P r o j e c t  93  -VII  TABLE 11  Reasons f o r the Farmers Not Wanting to J o i n O p h i r O i l Palm P r o j e c t  the  TABLE 12  R e a c t i o n o f Farmers to Devoting T h e i r Land to O i l Palm C u l t i v a t i o n  TABLE 13  Farmers' P r e f e r e n c e towards P o t e n t i a l i n T h e i r Area  TABLE 14  Farmers' W i l l i n g n e s s R i c e Growing  TABLE 15  Farmers' Response towards R e l e a s i n g Land f o r a Potential I r r i g a t i o n Project  TABLE 16  The Area o f Land C u l t i v a t e d i n Paddy f o r Survey Group  TABLE 17  The Acreage o f Land C u l t i v a t e d w i t h Tree C r o p s , P a l a w i j a and Others f o r Survey Groups  TABLE 18  Farmers' A b i l i t y  TABLE 19  The P r o p o r t i o n o f Communal and P r i v a t e Land i n the Study Area  TABLE 20  Income-Expenditure A n a l y s i s o f Per Ha O i l P r o d u c t i o n With IPEDA Tax  Projects  to Convert T h e i r Land to  to C u l t i v a t e Wetland Paddy  Palm  vi i i  Page  TABLE 21  Income-Expenditure A n a l y s i s o f Per Ha O i l Palm P r o d u c t i o n Without IPEDA Tax  109  TABLE 22  Bimas Program Loan Per Hectare  110  TABLE 23  Average R e t a i l R i c e P r i c e at the Free Market i n Some Kecamatan C a p i t a l s i n Kabupaten ( D i s t r i c t ) Pasaman, 1977, 1978, 1979 and 1980  110  Income-Expenditure A n a l y s i s o f Per Hectare Wetland R i c e P r o d u c t i o n  111  TABLE 24  ix  LIST OF FIGURES  Page  FIGURE 1  Mechanism o f Nagari A d m i n i s t r a t i o n  56  FIGURE 2  Organizational Palm P r o j e c t  73  Structure  o f the O i l  X  LIST OF MAPS  Page  MAP 1  Access Road to West Pasaman  7  MAP 2  Study Area and Ophir E s t a t e  11  MAP 3  Talu-Panti  69  MAP 4  Batang Tongar and Batang Pasaman R i v e r s  MAP 5  C r o s s i n g P o i n t at A i r Gadang  119  MAP 6  B i p o l a r I n t e g r a t e d Development  121  Road S e c t i o n  81  xi  PREFACE  During the l a s t three decades, the economic t h e o r y o f c a p i t a l i s t s t a t e s — t h e theory which suggests essential  s a v i n g and  developed  investment  as  components i n a h e a l t h y "development c y c l e " — h a s been the  most w i d e l y accepted paradigm f o r development. investment  will  The  t h e o r y assumes t h a t  a u t o m a t i c a l l y take p l a c e p r o v i d e d savings and  o p p o r t u n i t i e s are both  investment  available.  H i s t o r i c a l l y , the theory which i s u s u a l l y c a l l e d the modern theory o f economic development has countries.  s u c c e s s f u l l y been a p p l i e d to the  As a r e s u l t o f t h i s  industrial  s u c c e s s , most o f the l e a d e r s o f  i n g c o u n t r i e s , i n c l u d i n g Indonesia  develop-  ( p a r t i c u l a r l y a f t e r 1966), have  h i g h l y p r a i s e d t h i s development theory as the panacea f o r t h e i r economic problems.  In t h e i r attempts amount o f c a p i t a l  to apply t h i s development paradigm, a l a r g e  investment  i s needed.  In the t h i r d world c o u n t r i e s ,  the most p r o m i s i n g source o f c a p i t a l  investment,  f o r e i g n investment  a i d , i s from the e x p o r t o f a g r i -  cultural  products.  t h e i r l a b o r and crops.  and  international  i n a d d i t i o n , to p r i v a t e  In p u r s u i n g t h i s t a r g e t , many farmers  l a n d away from  have s h i f t e d  food p r o d u c t i o n to the growing o f cash-  As a r e s u l t , most o f the d e v e l o p i n g c o u n t r i e s are now  the problem o f food  f a c e d with  shortages.  There i s a general view t h a t the p r o d u c t i o n o f e x p o r t such as o i l palm o r rubber i s more p r o f i t a b l e  than  commodities  growing r i c e or o t h e r  xi i  food c r o p s .  T h i s i m p l i e s t h a t economic a n a l y s i s i s the o n l y  used to determine p r o f i t a b i l i t y . as a means o f determining  1.  The  The  the a p p r o p r i a t e  activity  should  environment s h o u l d  be  land.  properly  social  c o s t s and  can be r a t i o n a l l y  be p r o p e r l y understood so  decision-making.  that  b e n e f i t s o f changes i n economic appraised.  I t i s argued t h a t o n l y an e v a l u a t i o n o f the t o t a l produce r a t i o n a l  criteria  f o r maximum u t i l i z a t i o n .  social  the t o t a l  other  use o f the a g r i c u l t u r a l  p h y s i c a l c h a r a c t e r i s t i c s o f the s i t e  analyzed  2.  T h i s t h e s i s adds two  criterion  picture will  xi i i  ACKNOWLEDGEMENT  I would l i k e , f i r s t o f a l l , to e x p r e s s my s i n c e r e thanks and a p p r e c i a t i o n f o r the v a l u a b l e c o n t r i b u t i o n s  of  P r o f e s s o r Brahm Wiesman and Dr. Terence McGee.  My  a p p r e c i a t i o n i s a l s o addressed to the Canadian  International  Development Agency (CIDA) f o r i t s a l s o l i k e to thank my b e a u t i f u l  assistance.  I would  and d e s e r v i n g w i f e ,  J u l i a n a , and s o n s , Burhan, Tonny, Ford and Jimmy, and daughter, Mercy, f o r t h e i r and encouragement.  patience, f i d e l i t y ,  understanding  1  CHAPTER I  INTRODUCTION  1.  Background  Indonesia justice ensuring  Information  i s today s t r u g g l i n g to produce g r e a t e r e q u i t y and  i n development, a l o n g s i d e national  u n i t y while  f i v e y e a r development plan emphasis was  i t s e a r l i e r national  s p u r r i n g economic growth.  (Repelita I ) , i n i t i a t e d  put on promoting n a t i o n a l  u n i t y and  because these were the important p r i o r i t i e s  economic  been a c h i e v e d  the economy p a r t l y r e h a b i l i t a t e d .  range o f i s s u e s emerged i n I n d o n e s i a .  to matters o f e q u i t y - - o f s h a r i n g the concern  o f the problems a r i s i n g conditions a l s o the  realization  various  and  had  and  alone  development because  in social  p a r t s o f the  and  country.  may  and  economic  There  increase  was  rather  For t h i s reason the second f i v e y e a r  meaning some combination o f the  national  b e n e f i t s o f economic progress —  that sectoral planning  regions  the  These i s s u e s r e l a t e d l a r g e l y  ( R e p e l i t a I I ) i n c l u d e d a new  hierarchy o f planning  rehabilitation,  economic s t a b i l i t y , a  from the wide d i s p a r i t i e s  than decrease these problems. development p l a n  and  for regional planning  t h a t e x i s t e d i n the  1 969,  o f R e p e l i t a I a measure o f u n i t y  With the achievement o f t h i s p o l i t i c a l  they produced a new  first  immediately f o l l o w i n g  Towards the end  new  of  In the  in April  change o f power. and  goals  social  following:  and  s e c t o r a l plans a t the  emphasis on  planning  f o r the p r o v i n c e s ;  regional  a t the  center  planning, for a  integration of  r e g i o n a l l e v e l , t a k i n g i n t o account  2  regional  g o a l s ; s p a t i a l a s p e c t s o f s e c t o r a l p l a n n i n g ; and d e v o l u t i o n  of planning r e s p o n s i b i l i t y  In 1974, the p r i n c i p a l  to t h e v a r i o u s l e v e l s o f l o c a l  government.  o b j e c t i v e s o f Indonesian r e g i o n a l  development  were f o r m u l a t e d i n a s e r i e s o f d i r e c t i v e s by the P e o p l e ' s Assembly.  They  were to a c h i e v e a balance between r e g i o n a l and s e c t o r a l  to  development;  reduce i n e q u a l i t i e s  i n the r a t e o f development between p r o v i n c e s ; to  h e l p the p r o v i n c i a l  governments s o l v e l a r g e - s c a l e p r o v i n c i a l  problems;  to improve t h e p l a n n i n g , development and t a x i n g c a p a c i t i e s o f provinces.  the  These d i r e c t i v e s have been t r a n s l a t e d by the N a t i o n a l  Development P l a n n i n g Agency (Bappenas) i n t o f o u r development g o a l s : 1)  To e q u a l i z e development between r e g i o n s and to p r e v e n t  differences  i n l e v e l s o f development;  2)  large  To reap the h i g h e s t  possible  benefits  from the p o t e n t i a l  o f the d i f f e r e n t r e g i o n s , both from the  national  development p o i n t o f view and from t h a t o f the r e g i o n .  goal i n c l u d e s t r a n s m i g r a t i o n ;  3)  To develop m u t u a l l y  profitable  economic c o n n e c t i o n s between p r o v i n c e s i n the c o n t e x t o f a national  economy.  The c r e a t i o n o f r e g i o n a l  r e s p e c t to urban m a n u f a c t u r i n g objective; "border"  4)  This  unified  groups o f p r o v i n c e s w i t h  growth c e n t e r s i s an a s s o c i a t e d  To develop "backward" r e g i o n s , " c r i t i c a l "  r e g i o n s , and  regions.  Succinctly, it  can be s a i d t h a t r e g i o n a l  I n d o n e s i a has the dual o b j e c t i v e s : a l l o c a t i o n through i n t e g r a t i n g region and;  b)  a)  development p l a n n i n g  to improve e f f i c i e n c y  sectoral projects  to reduce i n t e r r e g i o n a l  in  in resource  and programs i n each  disparities  in  development.  During the l a s t decade, the government o f I n d o n e s i a has conducted  3  several was  regional  planning  studies.  The  " f e l t need" f o r these  s t r o n g among Indonesian exponents o f r e g i o n a l  foreign  donors s e e k i n g  a framework f o r t h e i r  as well  as among i n t e r n a t i o n a l c o n s u l t a n t s  the end  o f 1981,  almost a l l p r o v i n c e s  o f West I r i a n , have been  Due  to the  an and  l a c k o f funds and  the is  studies  Regional Board  s t a t e d i n the  compilation  i n the  e x p l i c i t objectives (TOR).  concerned r e g i o n .  several  implicit objectives.  the s t r e n g t h e n i n g  to t h e i r  subject  The  e x p l i c i t o b j e c t i v e s mentioned above, the One  The  o f information  the two  job t r a i n i n g " .  staff,  with  foreign for a l l of  first  required  second i s to  regions.  objective for recommend  In a d d i t i o n  s t u d i e s have a l s o  o f these o b j e c t i v e s has Indonesian c o u n t e r p a r t s  A second i m p l i c i t o b j e c t i v e o f the o f regional  the  Department o f P u b l i c Works,  development s t r a t e g i e s f o r the  the  province  Development D i v i s i o n o f  general  o f knowledge from experts  Towards  (BAPPENAS) i n c o n s u l t a t i o n  terms o f r e f e r e n c e  a systematic  development p l a n n i n g  donors.  Department o f Home A f f a i r s , r e q u e s t e d  There a r e , i n g e n e r a l , two  to p r o v i d e  a d v i s i n g the  among  programs,  i n I n d o n e s i a , except the  implementing agency, i n most cases the  assistance.  loan  of experienced planning  Development P l a n n i n g  more: r e c e n t l y the  grant and  and  studied.  government o f Indonesia through the the N a t i o n a l  planning  studies  development p l a n n i n g  been the through  s t u d i e s has  i n s t i t u t i o n s and  to  had transfer "on been process.  4  2.  Problem Statement  Seen from the nature  o f the o b j e c t i v e s s t a t e d above, the  o f r e g i o n a l development s t u d i e s can o n l y be viewed as broad recommendations. mented.  They need to be e l a b o r a t e d  Stemming from the West Sumatra Regional  conducted i n 1971,  the West Pasaman Study was  o f an " i n t e g r a t e d area a model  before  development p l a n " and  f o r area-wide p l a n n i n g i n  With f i v e  German e x p e r t s  planning  they are  Planning  considered  results  imple-  Study (WSRPS) as an  example  i s expected to serve  Indonesia.  ( I D R — I n s t i t u t e f o r Deyelopjnent  Research,  West Germany) and e i g h t Indonesian c o u n t e r p a r t s ,  the Development  f o r West Pasaman was  i t was  submitted  7, 1975.  From the  drawn up i n 1975  and  Chairman o f S t e e r i n g Committee on A p r i l the team was  concerned t h a t the p l a n be implemented.  team d i d not analyze l a n d use needs o f the  each and every region.  approach concerned with  to  Plan  the  outset,  Accordingly,  s e c t o r o f the economy and  the  the diverse  They aimed r a t h e r at a " s h o r t - c u t "  the implementation o f some major p r o p o s a l s .  e f f o r t s were c o n c e n t r a t e d  on  the s e c t o r s they  development i n West Pasaman which they  called  f e l t most u r g e n t l y  team as opposed to what might be p e r c e i v e d as  Their  required  "strategic sectors".  However, d e f i n i t i o n o f "needs" i s s u b j e c t to value  The  as  judgements o f  the  " b a s i c needs" by s o c i e t y .  u n d e r l y i n g i d e a o f the s h o r t - c u t approach i s t h a t a r e g i o n a l  development p l a n i s o f value o n l y i f as many o f i t s p r o p o s a l s  are  5  realized within consider its  as s h o r t a time as p o s s i b l e .  C l e a r l y t h i s does n o t  c l o s e l y which socioeconomic groups might b e n e f i t most from  realization.  Moreover, i n i d e n t i f y i n g meaningful  projects  the team  b e l i e v e d t h a t , besides b e i n g i n accordance with the p o l i c y makers' objectives^  the p r o j e c t p r o p o s a l s must f i n d the approval o f p r o s p e c t i v e  i n v e s t o r s , be they p r i v a t e o r p u b l i c , domestic, f o r e i g n o r m u l t i national  .  This  p r a c t i c e creates  being d i s p r o p o r t i o n a t e l y the  prospective  the problem o f p r o j e c t s e l e c t i o n  skewed i n f a v o r o f maximizing the p r o f i t s o f  e n t r e p r e n e u r s as opposed t o s a t i s f y i n g the v i s i b l e  needs  o f the people o f t h e r e g i o n .  Having a n a l y z e d the e x i s t i n g c o n d i t i o n s team concluded t h a t the l a c k o f an e f f i c i e n t was  i n the study a r e a , the transportation  the main cause o f West Pasaman's underdevelopment.  team f o r m u l a t e d the f o l l o w i n g o b j e c t i v e s external  At the end,  f o r West Pasaman:  and i n t e r n a l a c c e s s i b i l i t y o f West Pasaman; 2)  emigration  from  the a r e a ;  network  1) improving  reducing  3) i n c r e a s i n g the p e r c a p i t a income o f the  farmers; 4) c r e a t i n g a d d i t i o n a l employment w i t h i n  the a g r i c u l t u r a l  s e c t o r ; 5) di v e r s i f y i n g the l a b o r market by c r e a t i n g new jobs the  a g r i c u l t u r a l sector  (WPDP, 1975 p.  outside  165).  1)  The team emphasized the policy-maker's o b j e c t i v e s c e n t r a l government (p. 161).  as those o f the  2)  SIPEF, a . f o r e i g n company which i s o p e r a t i n g i n North Sumatra p r i m a r i l y i n o i l palm p r o d u c t i o n was d e v i s e d as a p o t e n t i a l i n v e s t o r f o r o i l palm p r o d u c t i o n i n O p h i r . There was no e f f o r t made t o i d e n t i f y l o c a l o r domestic e n t r e p r e n e u r s to p a r t i c i p a t e i n West Pasaman development.  6  Based upon the above g o a l s , the team suggested the c r u c i a l f o r West Pasaman between 1975-1985 i n c l u d e the  1)  projects  following:  The e s t a b l i s h m e n t o f a new main road from Simpang Empat to Mangapoh (see map 1}.  2)  An o i l  palm s m a l l h o l d e r  3)  Feeder road programs  4)  Making o p e r a t i o n a l of small  5)  project.  0975-1985).  the c e n t r a l  p l a c e concept by the  towns.  A settlement  scheme f o r the A i r Runding a r e a .  (WPDP, 1975 p.  224).  Of these c r u c i a l p r o j e c t s , the f i r s t two were s t r o n g l y and i n o r d e r to speed up the p r o c e s s o f t h e i r feasibility  improvement  recommended  implementation, a separate  study f o r the road p r o j e c t was commissioned and e x e c u t e d  a l o n g s i d e the team's o t h e r a c t i v i t i e s , w h i l e the f e a s i b i Hi t y s t u d y the o i l  for  palm p r o j e c t was conducted by the WPDP team.  Whether o r not the l a c k o f an e f f i c i e n t cause o f West Pasaman s s h o r t c o m i n g s , i t 1  new r o a d p a r a l l e l  transport  network  i s the main  can be t a k e n f o r granted t h a t a  to the c o a s t i s n e e d e d , c o n n e c t i n g Simpang Empat, Manggopoh,  and Padang (see map 1 ) .  It  s h o u l d s a t i s f y the r o l e o f t r a n s p o r t a t i o n  in  7  8  development as s t a t e d  by Owen:  T r a n s p o r t a t i o n has s p e c i a l s i g n i f i c a n c e because o f the pervasive role o f mobility i n f a c i l i t a t i n g other objectives. T r a n s p o r t i s a n e c e s s a r y i n g r e d i e n t o f n e a r l y every aspect o f economic and s o c i a l development, i t p l a y s a key r o l e i n g e t t i n g l a n d i n t o p r o d u c t i o n , i n marketing a g r i c u l t u r a l commodities, and i n making f o r e s t and mineral wealth accessible. I t i s a s i g n i f i c a n t f a c t o r i n the development o f i n d u s t r y , i n the expansion o f t r a d e , i n the conduct o f h e a l t h and e d u c a t i o n programs, and i n the exchange o f ideas. (Owen, 1964 p. 1 ) .  As s t a t e d  previously,  on those s e c t o r s Pasaman. the  the team i n t e n d e d to c o n c e n t r a t e i t s e f f o r t s  which were u r g e n t l y  needed  f o r development i n West  However, the urgency o f development was  i n t e r e s t s o f people o u t s i d e  the r e g i o n ,  seemingly d i r e c t e d a t  even o u t s i d e  Indonesia.  Before d e l i n e a t i n g p r o j e c t p r o p o s a l s the team had a l r e a d y i d e n t i f i e d the  r e c i p i e n t groups which were i n t e r e s t e d i n , and a f f e c t e d by, the  p l a n n i n g f o r West Pasaman, <as  Pasaman  Bukittinggi  :  :  Bupati's  follows:  (Regent) O f f i c e  Kabupaten  (District) Authorities  Kecamata.n  (Sub-District)  A g r i c u l t u r a l Development (ADP) German T e c h n i c a l  Padang  :  BAPPEDA (Regional Provincial  Authorities  Project  Cooperation  Development  Sectoral  Planning  Departments  Board)  9  Jakarta  :  BAPPENAS ( N a t i o n a l Development P l a n n i n g  Board)  IBRD M i s s i o n and A d v i s o r s UNICEF/FAO/ADB  Germany  :  B.MZ ( M i n i s t r y BFE,  f o r Economic  Cooperations)  KFW, DSE, GTZ ( O r g a n i z a t i o n s a d m i n i s t e r i n g  Technical  and C a p i t a l  Aid Projects)  Parliament (WPDP, 1975a, p. 101  The  e x t e n t to which the two c r u c i a l  meet the b a s i c needs o f the people  p r o j e c t s mentioned above can  i n West Pasaman i s q u e s t i o n a b l e .  As f a r as the o i l palm p r o j e c t i s concerned,  components o f economic  a n a l y s i s , i . e . B e n e f i t Cost  Ratio  and  (IRR) were t h e o n l y c r i t e r i a  it.  I n t e r n a l Rate o f Return Social  (BCR), Net Present Value  (NPV),  used to j u s t i f y  a s p e c t s were not c o n s i d e r e d i n the f e a s i b i l i t y  study.  The  team s t a t e d t h a t the o i l palm p r o j e c t would reduce r e g i o n a l income disparities with  (WPDP, 1975b, p. 4 ) , but i t seems they were o n l y  gross r e g i o n a l income d i s p a r i t i e s , and d i d not take  the p o s s i b l e impact potential  account,  o f the p r o j e c t on income d i s t r i b u t i o n o r the  use o f water r e s o u r c e s  to m i t i g a t e food shortage  i n the study area and i n I n d o n e s i a . focus o f t h i s  into  concerned  research.  Addressing  problems  these q u e s t i o n s  i s the  10  3.  The O b j e c t i v e s o f the Study  In view o f the problems s t a t e d aboye, t h i s r e s e a r c h attempts to i n v e s t i g a t e the i m p l i c a t i o n s o f u s i n g the d e s i g n a t e d p r o d u c t i o n and t o search agricultural  products.  f o r i t s most a p p r o p r i a t e  l a n d f o r o i l palm  use f o r other  The gross area needed f o r the o i l palm p r o j e c t  as proposed by the WPDP team amounted to 24,000 ha, o f which 20,000 ha would be devoted t o a s m a l l h o l d e r system, and the remaining  4,000 ha  would be used by the Nucleus E s t a t e s , which f u n c t i o n s as a p r o c e s s i n g u n i t and f o r marketing t h e ' f i n i s h e d product.  Of these  24,000 ha more than h a l f O3,000 ha) belongs to t h e  government and i s known as the former Ophir O i l Palm E s t a t e which was e s t a b l i s h e d i n 1930. War.  However i t was abandoned a f t e r the Second World  Thus t h e o i l palm p r o j e c t proposed by the WPDP team i s a  rehabilitation of this  former p r o j e c t .  i n d i v i d u a l s and communes (tanah  The remainder belongs to  ulayat).  As there i s n o . c l e a r  informa-  t i o n about who would be the c u l t i v a t o r s o f the government land and where they would come from, f i e l d on  the non-government l a n d .  i n v e s t i g a t i o n s f o r t h i s research  concentrated  T h i s l a n d i s l o c a t e d i n the northern  part  o f Kecamatan Pasaman which c o n s i s t s o f Kenagarian A i r Gadang, Lingkung 3) Aur, Aur Kuning, and Kapar land i n t h i s area oil 3)  .  T h i s study  covers  the a p p r o p r i a t e n e s s o f  f o r a g r i c u l t u r a l , i n g e n e r a l , and wetland paddy and  palm p r o d u c t i o n  i nparticular.  Three f a c t o r s , the p h y s i c a l  The WPDP (West Pasaman Development Planning) team had proposed t h a t o i l palm be c u l t i v a t e d on roughly 11,000 h e c t a r e s o f t h i s a r e a , a c c o r d i n g to a small h o l d e r , a p r i n c i p l e s i m i l a r t o the r e - e s t a b l i s h ment o f the Ophir E s t a t e , s i t u a t e d i n the southern p a r t o f Kecamatan Pasaman (see map 2 ) .  RENCANA PEMBANGUNAN PASAMAN BARAT WEST PASAMAN DEVELOPMENT PLANNING  Legend Kukou habupatan toufcoU hKMtitwi •  Ibukota  O  Tampat LaiMtyi  ..  .  fcaneganan  Cipiiii of Kabupatm Capd«l ol Kacamaian Nagan twadQuvtw Qitm ptaca  Bala* prcoam  Pravncial bontor  Bataa kotwpalan tobupatan bordef BaUt fcacamalan Kacamatan boroa' .  Balai kanaqanan  Nagan botdoi  Baias cancana pw-nbangunan  BorOvr of ir>a Planting Reg on  C ± H,voo k « 0  MAP  Z  12  characteristics  o f the s i t e , the s o c i a l  environment, and economic  feasi-  b i l i t y were chosen as the c r i t e r i a to determine l a n d use a p p r o p r i a t e n e s s . B r i e f l y , the o b j e c t i v e s o f the r e s e a r c h are d e f i n e d as f o l l o w s :  1.  To review  the contemporary t h e o r i e s o f development and  their  r e l e v a n c e to the proposed o i l palm p r o j e c t .  2.  3.  To e v a l u a t e the b a s i c needs, p r i m a r i l y food p r o d u c t i o n , o f the indigenous  people  To examine  the p o s s i b l e use o f the land d e s i g n a t e d  for  o f Kecamatan  food p r o d u c t i o n , mainly  Pasaman^.  f o r wet r i c e  cultivation.  4.  To e v a l u a t e the a p p r o p r i a t e use o f the land under  5.  To draw p o l i c y process  4)  f o r o i l palm  study.  c o n c l u s i o n f o r the area development p l a n n i n g  i n Indonesia.  Kecamatan Pasaman has been taken as a boundary o f t h i s study. The main reason f o r t h i s i s t h a t the l a n d i n q u e s t i o n i s l o c a t e d there.  13  4.  The S i g n i f i c a n c e o f the Study  I n d o n e s i a i s f i f t h amongst the c o u n t r i e s o f the World i n p o p u l a t i o n , exceeded o n l y by C h i n a , I n d i a , the U . S . S . R . and the United S t a t e s .  It  has a good c l i m a t e  for  farming and a l s o has a  s u r p l u s o f l a n d s u i t a b l e f o r food p r o d u c t i o n .  However, the people  and government are c o n t i n u o u s l y f a c e d w i t h the food p r o b l e m , as can be seen i n Table 1.  The Table suggests t h a t the b a s i c food s u p p l y i s s t i l l problem i n I n d o n e s i a ' s economic development.  a critical  Many attempts  have been  d i r e c t e d to overcome t h i s p r o b l e m , such as the use o f High Y i e l d i n g Varieties  (HYVs), the use o f f e r t i l i z e r ,  improvement o f i r r i g a t i o n  p e s t and d i s e a s e c o n t r o l ,  n e t w o r k s , and the e x p a n s i o n o f c u l t i v a t e d a r e a s ,  e s p e c i a l l y i n the Outer I s l a n d s  .  The Department o f A g r i c u l t u r e  given high p r i o r i t y to r i c e , the main f o o d s t u f f i n REPELITA I and REPELITA rapidly.  However, i t s  the  and i t s  o f the Indonesian p e o p l e ,  p r o d u c t i o n has expanded  i n c r e a s e d p r o d u c t i o n i s not k e e p i n g up w i t h  demand o f the growing p o p u l a t i o n  has  and i n c r e a s e d per c a p i t a  the  consumption  as average r e a l income rose a t about 5 per cent per y e a r d u r i n g Repelita II.  Cereal d e f i c i t s  have c o n t i n u e d t o grow, as shown i n T a b l e 1 ,  and m a l n u t r i t i o n has remained a major f a c t o f l i f e i n  Indonesia  ( M e a r s , 1978).  5)  Outer I s l a n d s denote the Indonesian t e r r i t o r y e x c l u d i n g Java and Madura. E x t e n s i f i c a t i o n i s no l o n g e r p o s s i b l e i n Java due to unavailability of land.  6)  REPELITA II—The Second F i v e Year Plan  (1974/75-1978/79).  14  Table 1  Imports o f B a s i c Foods, 1968-1978 ('000  Year  tons)  M i l l e d Rice  Soybeans  1968  628  0.2  367  1969  604  1 .2  294  1970  956  -  444  1971  490  0.3  155  1972  735  0.2  151  1973  1,660  0.1  690  1974  1 ,074  0.15  675  1975  672  17.8  717  1976  1 ,281  171.7  967  1977  1,950  89.1  763  1 .850  120.0  1 ,080  1978  (est.)  Source:  Wheat and F l o u r  D i c k , H. "Survey o f Recent Development",  Bulletin  o f Indonesian Economic S t u d i e s , V o l . XV No. 1 March 1979, p. 35.  15  As a r e s u l t , hopes f o r s e l f s u f f i c i e n c y p r e v i o u s l y on  r i c e are now  attention  has  expressed  i n terms o f food s e l f s u f f i c i e n c y .  been given to p a l a w i j a  maize, c a s s a v a ,  soybean, and  ment, o f f i c i a l l y and  decades.  with  One  o f Indonesia's  direction  for agricultural  If i t s potential  t h i s c o u l d exacerbate and  production  problems f o r  on the Outer I s l a n d s .  i t s considerable  i s a p a r t o f the Outer be  used f o r i r r i g a t i o n .  the e x i s t i n g endemic food shortages Secondly,  i n view o f the low food w i l l  reach o f the m a j o r i t y o f the people F u r t h e r , o v e r - r e l i a n c e on  a g r e a t e r g u l f i n the balance  Indonesia.  region  per c a p i t a income  continue  in this  o f the  to remain  r e g i o n and  the  the i m p o r t a t i o n o f food would c r e a t e  o f payment d e f i c i t s o f the c o u n t r y - - a  t h a t i s a l r e a d y p o s i n g a s e r i o u s c h a l l e n g e to governments and in  Islands  l a n d uses, are displaced.,  o f the mass o f the p o p u l a t i o n , imported  country.  growing  i n which p o l i c y t h i n k i n g i s once  Many o f i t s r i v e r s can  the n a t i o n a t l a r g e .  beyond the  critical  focus o f t h i s r e s e a r c h , with  food p r o d u c t i o n  the  p u b l i c acknowledge-  u n o f f i c i a l l y , t h a t to keep food p r o d u c t i o n  West Pasaman, as the  l o c a t e d i n Sumatra.  during  rice.  again t u r n i n g i s . to expand food p r o d u c t i o n  potential  More  food) c r o p s , such as  i n c r e a s i n g awareness and  ahead o f p o p u l a t i o n would be one at l e a s t two  (secondary  groundnuts which were n e g l e c t e d  p a s t decade i n the p r e o c c u p a t i o n  R e c e n t l y , there was  concentrated  probl  planners  16  5.  Methodology  T h i s study e v a l u t e s  the most a p p r o p r i a t e  governmental l a n d designated  use o f the non-  f o r o i l palm p r o d u c t i o n .  The p h y s i c a l  c h a r a c t e r i s t i c s o f the s i t e , the s o c i a l  environment, and economic  f e a s i b i l i t y were chosen as the c r i t e r i a  f o r t h a t purpose.  research  i s the r e s u l t o f the study o f the r e l e v a n t  d i s c u s s i o n s , i n t e r v i e w s , and f i e l d o b s e r v a t i o n .  This  literature,  Three l e v e l s o f  government, the c e n t r a l  government  ( J a k a r t a ) , the p r o v i n c i a l government,  (Padang), and the l o c a l  government  (Lub.uk S i k a p i n g ) were  In J a k a r t a , i n t e n s i v e d i s c u s s i o n s were h e l d with t h e of:  Bappenas  Cthe N a t i o n a l  Development P l a n n i n g  D i r e c t o r a t e o f Planning  o f Food Crop P r o d u c t i o n , General o f E s t a t e Directorate  officials  Agency), t h e  Directorate  Cthe D i r e c t o r a t e o f I r r i g a t i o n ,  General o f Water Resources Development the  consulted.  and Programming), the D i r e c t o r a t e  the Bureau o f P l a n n i n g  General  and the D i r e c t o r a t e  Crops o f the M i n i s t r y o f A g r i c u l t u r e , and the  General o f A g r a r i a  Cthe D i r e c t o r a t e o f Land Use) o f the  M i n i s t r y o f Home A f f a i r s .  At the p r o v i n c i a l l e v e l several  (.Padang) there were d i s c u s s i o n s  s e c t o r a l agencies such a s :  the P u b l i c Works S e r v i c e  D i v i s i o n ) , the A g r i c u l t u r a l E x t e n s i o n S e r v i c e , and the Bappeda  Pasaman were a l s o  S e r v i c e , the S m a l l h o l d e r  Cthe P r o v i n c i a l Development P l a n n i n g  The German r e p r e s e n t a t i v e s  to ADP  contacted.  with  (Area  (Irrigation Plantation Board).  Development Program) West  17  In Lubuk S i k a p i n g , the l o c a l and  government o f f i c i a l s were  the development o f West Pasaman was d i s c u s s e d .  visited  In West Pasaman  an i n t e n s i v e d i s c u s s i o n was conducted w i t h the f i e l d .manager o f PTP V I , a state-owned company which runs the Nucleus E s t a t e i n the former Estate.  The d i s c u s s i o n was c o n t i n u e d  in Pabatu^  complete data and i n f o r m a t i o n about the Ophir  Ophir  (North Sumatra), where  O i l palm p r o j e c t i s  available.  All  data and i n f o r m a t i o n about the p h y s i c a l c h a r a c t e r i s t i c s o f the  s i t e and economic f a c t o r s which are needed f o r the e v a l u a t i o n o f the use o f l a n d being s t u d i e d were c o l l e c t e d  from the agencies  Data and i n f o r m a t i o n c o n c e r n i n g  the s o c i a l  the  area.  farmers  living  i n the study  from each K e n a g a r i a n — v i l l a g e (one w a l i n a g a r i  The  mentioned above.  environment was c o l l e c t e d  S i x t y farmers  (.fifteen  was to determine  their to the  as well as to f i n d out what k i n d o f p r o j e c t o r program the  government s h o u l d develop income.  i n the study  area i n o r d e r to i n c r e a s e the  The main purpose o f i n t e r v i e w i n g the w a l i n a g a r i s  was to c o l l e c t data  and i n f o r m a t i o n on l a n d t e n u r e .  the w a l i n a g a r i s were asked t h e i r o p i n i o n , as farmers,  7)  heads  from each Kenagarian) were i n t e r v i e w e d .  o p i n i o n about the o i l palm p r o j e c t i n Ophir and i t s e x t e n s i o n  farmers'  farmers  u n i t ) and f o u r Wal i n a g a r i s ~ v i 11 age  purpose o f i n t e r v i e w i n g the farmers  study area  from  In a d d i t i o n , about the o i l  Pabatu i s the main o f f i c e o f PTP V I . When I was i n West Pasaman i n the summer, 1980, I was t o l d t h a t PTP VI i s going to run the Nucleus E s t a t e i n the Ophir a r e a . In summer 1981, when I was i n t h a t a r e a , the PTP VI j u s t s t a r t e d i t s a c t i v i t i e s i n Ophir t o run the Nucleus E s t a t e .  18  palm p r o j e c t and  any o t h e r p r o j e c t or program which c o u l d  i n c r e a s e the farmers'  The  income i n the study  directly  area.  q u e s t i o n n a i r e used f o r these i n t e r v i e w s can be seen i n  Appendices 1 and  2, and  the r e s u l t s are presented  i n Chapter  V.  19  CHAPTER II  THE THEORY OF DEVELOPMENT:  1.  A LITERATURE REVIEW  Introduction  Until  r e c e n t l y , the economic theory o f developed  capitalist  s t a t e s , which i s u s u a l l y c a l l e d the modern theory o f economic has been the most w i d e l y accepted paradigm f o r development The theory suggests  s a v i n g and investment  a h e a l t h y "development c y c l e " .  are e s s e n t i a l  development,  CAdelman,  components o f  Thus a major f e a t u r e o f development  economics i s c e n t e r e d on the g e n e r a t i o n o f s a v i n g s , the a v a i l a b i l i t y investment  o p p o r t u n i t i e s and t h e i r p r o d u c t i v i t y .  investment  will  investment  capita w i l l generate  I t i s assumed  of  that  a u t o m a t i c a l l y take p l a c e p r o v i d e d s a v i n g s and investment  o p p o r t u n i t i e s are both a v a i l a b l e . capital  1975).  which w i l l  increase.  savings.  Saving w i l l  create a surplus f o r  c r e a t e more o u t p u t , which means GNP p e r  Once a g a i n , an i n c r e a s e i n income per c a p i t a  The p r i n c i p a l  and Domar who adopted Keynesian  originators o f this economics  will  theory are Harrord  CHirschman, 1958 p. 30).  20  2.  B a l a n c e d Growth Theory  H i s t o r i c a l l y , the modern t h e o r y o f development has s u c c e s s f u l l y been a p p l i e d i n the i n d u s t r i a l  countries.  Based on t h i s  success,  most o f the l e a d e r s o f d e v e l o p i n g c o u n t r i e s , i n c l u d i n g I n d o n e s i a , p a r t i c u l a r l y a f t e r the New Order regime became p o w e r f u l , i n 1966, have h i g h l y a c c l a i m e d t h i s  development t h e o r y as a panacea f o r  their  economic p r o b l e m s .  D u r i n g the 1950s many economic t h e o r i s t s c e n t e r e d t h e i r a n a l y s i s on the a p p l i c a t i o n o f modern economic t h e o r y i n the d e v e l o p i n g c o u n t r i e s . They found t h a t the t h e o r y d i d not worlc as w e l l developed c o u n t r i e s .  did in  the  The economic s t r u c t u r e o f underdeveloped c o u n t r i e s ,  which i s p r i m a r i l y a g r i c u l t u r a l demonstration e f f e c t  as i t  ( L e w i s , 19.55.p. 218; L e w i s , 1954 pp 4 4 8 - 4 4 9 ) ,  (.Nurkse, 1953 p. 6 8 ) , i m p e r f e c t maintenance o f law  and o r d e r and p o l i t i c a l  stability  (.Bauer and Yamey, 1957) have been the  main f a c t o r s a s s o c i a t e d w i t h the f a i l u r e o f t h i s t h e o r y i n the d e v e l o p i n g nations.  For example, i n a d d i t i o n to the problem o f c a p i t a l  formation  i n underdeveloped c o u n t r i e s , the d e m o n s t r a t i o n e f f e c t has a n e g a t i v e effect,  as s t a t e d by N u r k s e :  The modern communications and the s p r e a d o f knowledge are so r a p i d and e f f e c t i v e t h a t the i n h a b i t a n t s o f poor c o u n t r i e s know a l l about the high, s t a n d a r d o f consumption e n j o y e d by most people i n r i c h c o u n t r i e s such as the U . S . , and t h a t t h e r e i s a s t r o n g d e s i r e and t e m p t a t i o n to e n j o y as much o f t h i s a t t r a c t i v e way o f l i v i n g as incomes p e r m i t . It follows that a high income and consumption l e v e l i n an advanced c o u n t r y can do harm i n t h a t i t tends f.o reduce the domestic means o f  21  c a p i t a l f o r m a t i o n i n the underdeveloped c o u n t r i e s ; i t puts e x t r a p r e s s u r e on c o u n t r i e s w i t h a r e l a t i v e l y low income to spend a high p r o p o r t i o n o f i t . (.Nurkse, 1953 p. 6 8 ) .  There  has been c o n t r o v e r s y about t h i s  theory.  The  first  school o f  thought, which i s known as the balanced growth a d v o c a t e s , proposed  that  investment s h o u l d be d i v e r s i f i e d o v e r a broad range o f i n d u s t r i e s .  It  was  argued  t h a t each i n d u s t r y would then generate a demand f o r the goods  o f the o t h e r i n d u s t r i e s s u f f i c i e n t words, when investment spend  part of t h e i r  encourages  to keep a l l o f them v i a b l e .  i s i n c r e a s e d the people who  incomes  are thus employed  on buying consumer goods, and  producers o f consumer goods to produce  gives more employment, and so the s p i r a l  In o t h e r  more.  this  This in turn  continues upward (Lewis, 1 9 5 5 ) .  B r i e f l y , the main argument o f the balanced growth t h e o r i s t s investment  p r o j e c t s t h a t might  taken t o g e t h e r , be p r o f i t a b l e Several  criticisms  (Fleming, 1955;  be i n d i v i d u a l l y  u n p r o f i t a b l e would, when  (Rosenstein-Rodan,  1943;  Nurkse,  1953).  have been made o f the balanced growth concepts  S i n g e r , 1949;  M y r d a l , 1957;  i s that  Hirschman,  1958).  22  3.  Unbalanced Growth Theory  In 1958 Hirschman argued t h a t the b i g push i m p l i e d by the t h e o r y o f balanced growth f a i l s and he developed the theory o f "unbalanced growth". is  He i n s i s t e d t h a t development i s a gradual  u n r e a l i s t i c to t h i n k  s e c t o r on a t r a d i t i o n a l was  p r o c e s s , and i t  i n terms o f super-imposing a l a r g e modern economy.  Hirschman s unbalanced growth 1  i n s p i r e d by Perroux's concept o f "growth p o l e s " .  He  theory  strongly  suggests t h a t , i n o r d e r to ensure the continuance o f p r o d u c t i v e i n v e s t m e n t , the i n i t i a l  a c t i v i t y chosen s h o u l d be one t h a t  backward and forward l i n k a g e s  (p. 117).  He b e l i e v e s t h a t  might tend to p o l a r i z e around c e r t a i n i n i t i a l result of this  development w i l l  eventually t r i c k l e  s e c t o r s r a t h e r than on w i d e l y d i s p e r s e d p r o j e c t s . growth can be communicated  country to a n o t h e r .  His b a s i c argument  development  growth c e n t e r s .  However, the  down to o t h e r a r e a s .  Thus, development s t r a t e g y s h o u l d be c o n c e n t r a t e d on  i s c e n t e r e d on how  maximizes  relatively,few  Hirschman's  argument  from one r e g i o n o r one  i s as f o l l o w s :  ...we may take i t f o r granted t h a t economic progress does not appear everywhere a t the same time and t h a t once i t has appeared powerful f o r c e s make f o r a s p a t i a l c o n c e n t r a t i o n o f economic growth around the i n i t i a l s t a r t i n g p o i n t s . Why s u b s t a n t i a l gains may be reaped from overcoming the " f r i c t i o n o f space" through aglomeration has been a n a l y z e d i n d e t a i l by the economic theory o f l o c a t i o n . In a d d i t i o n to the l o c a t i o n a l advantages o f f e r e d by e x i s t i n g s e t t l e m e n t s o t h e r s come from nearness to a growing c e n t e r where an i n d u s t r i a l atmosphere has come i n t o being with i t s s p e c i a l r e c e p t i v i t y to i n n o v a t i o n s and e n t e r p r i s e . Whatever the r e a s o n , there can be l i t t l e doubt t h a t an economy, to l i f t i t s e l f to h i g h e r income l e v e l s , must and w i l l f i r s t develop w i t h i n i t s e l f one o r s e v e r a l r e g i o n a l c e n t e r s o f economic s t r e n g t h . T h i s need f o r the emergence o f "growing p o i n t s " o r "growth p o l e s " i n the course o f the development  23  process means t h a t i n t e r n a t i o n a l and i n t e r r e g i o n a l i n e q u a l i t y o f growth i s an i n e v i t a b l e concomitant and c o n d i t i o n o f growth i t s e l f. T h u s , i n the g e o g r a p h i c a l s e n s e , growth i s n e c e s s a r i l y u n b a l a n c e d . However, w h i l e the r e g i o n a l s e t t i n g r e v e a l s unbalanced growth a t i t s most o b v i o u s ; i t perhaps does n o t show i t a t i t s b e s t . In a n a l y z i n g the p r o c e s s o f unbalanced g r o w t h , we c o u l d always show t h a t an advance a t one p o i n t s e t s up p r e s s u r e s , t e n s i o n s , and compulsions toward growth a t subsequent p o i n t s . But i f a l l o f t h e s e . p o i n t s f a l l w i t h i n the same p r i v i l e g e d growth s p a c e , the f o r c e s t h a t make f o r t r a n s m i s s i o n o f growth from one c o u n t r y , one r e g i o n o r one group o f persons to a n o t h e r w i l l be s i n g u l a r l y weak. ( H i r s c h m a n , 1958 p. 1 8 3 - 1 8 4 ) .  A c c o r d i n g to H i r s c h m a n , the advantage o f " u n b a l a n c e d growth" " b a l a n c e d growth" which s t r e s s e s t h a t e v e r y a c t i v i t y with every o t h e r ,  expands i n  over  step  i s t h a t the former l e a v e s c o n s i d e r a b l e scope f o r i n d u c e d  i n v e s t m e n t d e c i s i o n s and t h e r e f o r e  economizes on a . s c a r c e r e s o u r c e ,  namely, genuine d e c i s i o n making ( H i r s c h m a n , 1958 p.  62-63).  In p o s t u l a t i n g h i s unbalanced growth t h e o r y , Hirschman spoke o f "trickling  down" and " p o l a r i z a t i o n " . e f f e c t s ,  the r e l a t i o n s h i p o f a growth p o i n t and i t s trickling  the terms he uses to  hinterland.  The most  explain important  down e f f e c t s are generated by purchases and i n v e s t m e n t made  i n the h i n t e r l a n d by the growth p o i n t s .  In a d d i t i o n , the growth  point  may absorb some o f the d i s g u i s e d unemployment o f the h i n t e r l a n d ,  which  means the marginal p r o d u c t i v i t y l e v e l s o f the  hinterland  a l s o take p l a c e . relatively  will  o f l a b o r and per c a p i t a increase.  consumption  But p o l a r i z a t i o n e f f e c t s may  C o m p e t i t i o n from the more developed a r e a may depress  inefficient  m a n u f a c t u r i n g and e x p o r t a c t i v i t i e s  i n the l e s s  developed a r e a , and the former may produce a " b r a i n d r a i n " from the l a t t e r , r a t h e r than c r e a t e o p p o r t u n i t i e s  for t h e i r  d i s g u i s e d unemployed.  24  Working independently in a d i f f e r e n t part of the world, Myrdal (1957) had already postulated the same thought as Hirschman.  Myrdal  stresses that "in the normal case c i r c u l a r causation is a more adequate hypothesis than stable equilibrium for the theoretical analysis of a spatial process"  (p. 20-21).  His main theme was that economic  development would continue through a process of c i r c u l a r and cumulative causation.  He found that whatever the reason for the i n i t i a l  expansion of a growth center, thereafter cumulatively expanding economies would f o r t i f y i t s growth at the expense of other less developed areas. Geographically, growth would be transmitted through "spread" and "backwash" e f f e c t s , which correspond closely to Hirschman's t r i c k l i n g down and polarization e f f e c t s .  Myrdal points out that development usually starts in certain regions of a nation because of t h e i r locational advantage or because of some h i s t o r i c a l accident.  Once one region has achieved a development advantage  over the rest of the nation, certain forces w i l l immediately begin to operate.  Myrdal amplified the e f f e c t of the force by w r i t i n g :  It i s easy to see how expansion in one l o c a l i t y has 'backwash e f f e c t s ' in other l o c a l i t i e s . More s p e c i f i c a l l y the movement of labor, c a p i t a l , goods and services do not by themselves counteract the natural tendency to regional equality. By themselves, migration, capital movements and trade are rather the media through which the cumulative process evolves— upwards in the lucky regions and downwards i n the unlucky ones. In general, i f they have positive results for the former, t h e i r effects on the l a t t e r are negative. Against the backwash effects there are, however, also certain centrifugal "spread e f f e c t s " of the expansionary momentum from the centres of economic expansion to other regions. It is natural that the whole region around a nodal centre of  25  e x p a n s i o n s h o u l d gain from the i n c r e a s i n g o u t l e t s o f a g r i c u l t u r a l p r o d u c t s and be s t i m u l a t e d to t e c h n i c a l advance a l l a l o n g the l i n e . There i s a l s o a n o t h e r l i n e o f c e n t r i f u g a l s p r e a d e f f e c t s to l o c a l i t i e s f u r t h e r away, where f a v o u r a b l e c o n d i t i o n s e x i s t f o r p r o d u c i n g raw m a t e r i a l s f o r the growing i n d u s t r i e s i n the c e n t r e s . ( M y r d a l , 1957 p. 2 7 - 3 1 ) .  In c o n c l u d i n g h i s argument Myrdal p o s t u l a t e s t h a t the h i g h e r o f economic development t h a t a c o u n t r y has a l r e a d y a t t a i n e d , the the s p r e a d e f f e c t s w i l l  u s u a l l y be ( p .  34).  It  seems t h i s  is  level stronger  confirmed  e m p i r i c a l l y by W i l l i a m s o n (1965) when he w r i t e s :  . . . e x p e r i e n c e suggests t h a t i n c r e a s i n g r e g i o n a l i n e q u a l i t y i s generated d u r i n g the e a r l y development s t a g e s , w h i l e mature growth has produced r e g i o n a l convergence o r a r e d u c t i o n in d i f f e r e n t i a l s , (p. 1 9 9 ) .  D e s p i t e the f a c t  t h a t Myrdal  (1957) and Hirschman (1958) have  s i m i l a r concepts o f a n a l y s i s i n t h e i r w o r k s , t h e r e are c o n s i d e r a b l e d i f f e r e n c e s i n emphasis.  Hirschman was more o p t i m i s t i c  about the l o n g -  run f u t u r e o f the l e s s - d e v e l o p e d c o u n t r i e s and a l s o r e l a t e d h i s explicitly  to l e s s - d e v e l o p e d a r e a s w i t h i n c o u n t r i e s .  theory  While Myrdal was  more c a u t i o u s about the consequences o f i n d u c e d g r o w t h , the  cumulative  advantages e x p e r i e n c e d i n growth p o i n t s would cause backwash e f f e c t s prevail  i n most o t h e r p l a c e s .  Hirschman seemed to take f o r  that strong forces eventually w i l l tion effects  to  granted  c r e a t e a t u r n i n g p o i n t once p o l a r i z a -  have proceeded f o r some t i m e .  26  4.  V i a b i l i t y o f Modern Economic Theory i n Developing  Countries  M y r d a l s and Hirschman's i d e a o f unbalanced growth has dominated 1  development s t r a t e g i e s idea o f t h i s  f o r the p a s t three decades.  development s t r a t e g y , a l s o c a l l e d  The u n d e r l y i n g  growth pole  strategy,  has been t h a t i t would be i n e f f i c i e n t and i n e f f e c t i v e to spread developmental i n v e s t m e n t t h i n l y throughout the n a t i o n a l  territory.  I n s t e a d , i t i s b e t t e r to s e l e c t key urban areas f o r c o n c e n t r a t e d ment programs  t h a t would b e n e f i t  invest-  from economies o f s c a l e and e x t e r n a l  economies o f a glome r a t i on.  E x p e r i e n c e s o f many d e v e l o p i n g c o u n t r i e s have proved t h a t growth pole s t r a t e g y has been r e a s o n a b l y e f f e c t i v e it  this  i n r a i s i n g GNP, but  has f a i l e d to reach the l i v e s o f o r d i n a r y people i n terms o f j o b s ,  income d i s t r i b u t i o n , and the b a s i c a l l e v i a t i o n o f c r i t i c a l (Grant, 1 973; Adelman,  1975; Adelman  And towards the end o f the 1960's  poverty  and M o r r i s 1973; A r i e f , 1977).  Dudley Seers r a i s e d some fundamental  q u e s t i o n s c o n c e r n i n g the meaning o f development which a r e addressed to p o v e r t y , unemployment and i n e q u a l i t y .  The q u e s t i o n s to ask about a country's development a r e t h e r e f o r e : What has been happening to p o v e r t y ? What has been happening to unemployment? What has been happening to inequality? I f a l l three o f these have d e c l i n e d from high l e v e l s , then beyond doubt t h i s has been a - p e r i o d o f development f o r the c o u n t r y concerned. I f one o r two o f these c e n t r a l problems have been growing worse, e s p e c i a l l y i f a l l t h r e e have, i t would be strange t o c a l l the r e s u l t "development", even i f per c a p i t a income doubled. ( S e e r s , 1969 p. 3 ) .  27  The pattern of development in Mexico is a typical example of Seers' questions.  While this country has experienced an increased  per capita income, unemployment, inequality and the poverty level of the  mass of the population has remained unchanged or even increased.  Empirical evidence for this failure has been shown by Grant:  The experience of most developing countries over the past decade indicates.that a rising GNP growth rate alone is no guaranteee against worsening poverty. Mexico, for example, has been very successful by traditional standards; i t s GNP has risen by 6 or 7 per cent annually for the past 15 years. Yet, at the same time, unemployment in Mexico has been increasing'*, and the income disparity between the rich and the poor has clearly been widening. This is not only because of Mexico's very rapid population growth... It i s also because government policies have bypassed the small, labor-intensive producers throughout Mexico and encouraged production primarily through large farms and urban-based factories... Half of Mexico's industrial production has been located in its capital city... the jobs, housing, education, and health f a c i l i t i e s provided by government have generally favored higher income groups. In the early 1950's the total income of the top fifth of Mexican population was 10 times that of the lowest f i f t h ; by 1 969, i t was 16 times as great. (Grant, 1973 p. 7).  In line with Grant's findings, Arief (1977) observed that rapid growth in GNP per capita does not automatically result in a higher standard of living for the majority of people in Indonesia.  He  indicated that the development of the modern sector was financed at the expense of the traditional agricultural sector.  Arief further writes:  ... the implementation of the GNP growth oriented model tends to sacrifice the traditional sector... The industrialization strategy in Indonesia which is importdependent import substitution for the purpose of catering . to the domestic market can be considered as a strategy which sacrifices the agricultural sector since i t does not depend on domestic agriculture for raw materials.  28  Indonesian economic p o l i c i e s and p r a c t i c e s which were b i a s e d toward ;the modern and urban s e c t o r s were accompanied a l s o by a p a t t e r n on behaviour o f the r u l i n g e l i t e and the members o f the bureaucracy which i s d e s t r u c t i v e to the attainment o f p o p u l a r w e l f a r e as i t c r e a t e d d i s t o r t i o n s i n the economic process. ( A r i e f , 1977 p. 21-59).  In a d d i t i o n to the example given  above, Adelman  not o n l y i s there no  automatic t r i c k l e  on the  development process  c o n t r a r y , the  up i n f a v o r o f the middle c l a s s e s and realized that this  industrialization  i n the t h i r d w o r l d . very l i t t l e operation  The not o n l y  recognized  down o f development b e n e f i t s ; leads  the  t y p i c a l l y to a  rich.  trickle-  Robert McNamara a l s o  s t r a t e g y does not work p r o p e r l y  t h a t the World Bank i t s e l f had  a t t e n t i o n to s u b s i s t e n c e  a g r i c u l t u r e i n i t s 25 y e a r s  paid of  (McNamara, 1973).  i n v a l i d i t y o f b a s i c assumptions o f growth c e n t r e theory i s found i n the  countries.  developing  c o u n t r i e s , but a l s o i n the  Moseley's e m p i r i c a l s t u d i e s  transmission l e d him  He  (1975) notes t h a t  (Moseley, 1973)  about the  impacts o f growth c e n t r e s i n E a s t A n g l i a and  towns and  rural  i n v e s t d i r e c t l y i n these  growth-  B r i t t a n y have  to conclude t h a t i f the o b j e c t i v e o f r e g i o n a l p o l i c y  b e n e f i t small  developed  i s to  a r e a s , then i t would be a d v i s a b l e  to  places.  Pred's study on i n t e r - u r b a n  transmission  o f growth i n advanced  economies suggests t h a t the d i s a p p o i n t i n g r e c o r d o f growth centre  and  growth p o l e p o l i c i e s i n advanced economies i s i n some measure a t t r i b u t a b l e to mistaken assumptions c o n c e r n i n g the end  Pred concluded  that:  inter-urban  growth t r a n s m i s s i o n .  At  29  ... i t must be acknowledged t h a t no r e g i o n a l p l a n n i n g p o l i c y i s l i k e l y to be e i t h e r goal c o n s i s t e n t o r as s u c c e s s f u l as a n t i c i p a t e d unless i t s f o r m u l a t i o n i s preceded by s t u d i e s e s t a b l i s h i n g the p e c u l i a r u n d e r l y i n g s t r u c t u r e o f growth t r a n s m i s s i o n i n t e r d e p e n d e n c e s w i t h i n the concerned r e g i o n a l and n a t i o n a l system o f c i t i e s . . . r e g i o n a l p l a n n e r s cannot c o n t i n u e to operate under the premise t h a t income and employment o p p o r t u n i t i e s w i l l a u t o m a t i c a l l y expand r a p i d l y in a growth c e n t r e and i t s s u r r o u n d i n g r e g i o n merely as a consequence o f the implementation o f e x p l i c i t l o c a t i o n a l d e c i s i o n s , such as the growth c e n t r e assignment o f a new manufacturing f a c i l i t y o r government o f f i c e . I n s t e a d , ... i t i s n e c e s s a r y t h a t , where p o s s i b l e , there be some minimal c o o r d i n a t i o n o f the e x p l i c i t and i m p l i c i t l o c a t i o n a l d e c i s i o n making o f both p r i v a t e c o r p o r a t i o n s and government o r g a n i z a tions. (Pred, 1976 p. 169).  30  5.  A l t e r n a t i v e Development  Strategies  Having r e a l i z e d t h a t the t r i c k l e properly  i n developing  to deplore  down approach d i d not work  c o u n t r i e s , i t has r e c e n t l y become  the use o f the modern theory  fashionable  o f economic development, which  i s based on an u r b a n - i n d u s t r i a l o r i e n t a t i o n .  Friedmann's work  on 'A S p a t i a l Framework f o r Rural  i n Poor N a t i o n s '  Development  that "rural  development i n poor c o u n t r i e s  of national  priorities  of a spatial  priorities"  reordering  i n the use o f investment funds and the a d o p t i o n  framework f o r the f o r m u l a t i o n  p o l i c i e s and program"  r e q u i r e s a major  stressed  and e x e c u t i o n  (Friedmann, 1974 p . 4 ) .  o f the  By " r e o r d e r i n g  he means t h a t a process o f economic  appropriate  national  growth should  be  " d i r e c t e d towards i n c r e a s i n g p r o s p e r i t y and e q u a l i t y among the populat i o n ; economic development should .be d i r e c t e d towards s e l f which b u i l d s on e x i s t i n g knowledge structures  and seeks to t r a n s f o r m  from w i t h i n ; the s t r a t e g y o f u r b a n - i n d u s t r i a l  be changed t o another s t r a t e g y i n which improvement production the  i s seen as a necessary p r e c o n d i t i o n  urban-industrial  think o f i t as ever r e a c h i n g  traditional growth  should  in agricultural  f o r f u r t h e r development i n  s e c t o r " (Friedmann, 1974 p. 5 ) .  development must be viewed as a c o n t i n u i n g  generation  He suggested t h a t  "rural  process and i t i s f u t i l e to  a R o s t o v i a n " t a k e - o f f " stage"  (Friedmann, 1974  p. 30). The r u r a l well-being countries.  development approach, as a means f o r promoting the economic  o f poor r u r a l  p e o p l e , i s not a new  For example, B r i t i s h  approach i n the t h i r d w o r l d  administrators  1930 s t r i e d to e s t a b l i s h c e r t a i n o r g a n i z a t i o n s 1  several  v i l l a g e s i n Pakistan  during  the 1920's and  and i n s t i t u t i o n s i n  as a means to overcome the v i l l a g e s '  31  backwardness and  Despite on  rural  the  poverty  f a c t t h a t there  development  Friedmann and  (Ahmed, 1980  p.  36).  have been many s c h o l a r s  (Friedmann, 1974;  Douglass,, 1975), o n l y  L e l e , 1975;  s t r a t e g y i n the  developing  countries.  In 1975,  Conference i n Nagoya, Japan, Friedmann and development" as a p r o m i s i n g s t r a t e g y argued t h a t the  trickle  Haque, e t . al  Friedmann's and  study suggest an a l t e r n a t i v e s t r a t e g y to r e p l a c e  Douglass  the  industrialization, Nations  Douglass proposed  "agropolitan  countries.  untenable and  They  proposed  that  a strategy of accelerated  rural  human needs, a more equal  d i s t r i b u t i o n o f economic b e n e f i t s , the d i r e c t  involvement o f l o c a l based on the  The  development s h o u l d  1977;  0975)  1  a t a United  f o r developing  down s t r a t e g y was  concentrating  people i n the  activation of rural  "agropolitan  be o r i e n t e d to  process o f development, and  p e o p l e , a g r i c u l t u r e and  development" s t r a t e g y was  based on  growth  resources.  their  findings  in assessing  the r e s u l t s o f the s t r a t e g y o f a c c e l e r a t e d  i n s i x Asian  c o u n t r i e s , namely, I n d i a , I n d o n e s i a , West M a l a y s i a ,  P h i l i p p i n e s , Republic major f i n d i n g s : growth o f t o t a l  o f Korea and  Thailand.  The  population,  urban economy was  greater  i n o n l y a few  by no means ready to p r o v i d e  full,  strategy  food p r o d u c t i o n  and  has  resulted in a substantial neglect  the emphasis on e x p o r t s has  their the  migration;  urban  centres;  productive,  employment to everyone; 4) income i n e q u a l i t y i s i n c r e a s i n g ; 5) traditional  the  than  r e f l e c t i n g large scale rural-urban  2) "modern" development i s h i g h l y c o n c e n t r a t e d 3) the  industrialization  f o l l o w i n g are  1) urban growth i n every c o u n t r y was  basic  the  o f domestic  l e d farmers to a l l o c a t e  32  t h e i r l a b o r and (Friedmann and  The  l a n d away from food Douglass, 1975  pp.  to the p r o d u c t i o n  the so c a l l e d  with  development s t r a t e g y was  district".  s e r v i c e s , o f f - f a r m j o b s , and  An  agropolitan  i s s e l f governing.  an average p o p u l a t i o n  d e n s i t y o f at l e a s t 200  meter, c o n t a i n a core  town o f 10  commuting r a d i u s o f 5-10  and  Douglass, 1975  retaining local fering capital internal  have a t o t a l  p. 43).  savings,  The  persons per square  population  o f 50  be  industrialization i n t o the  to r u r a l  district  regimes are reaching  strategy.  (Friedmann  Friedmann and  p.  the  Douglass  unit for planning  53).  agropolitan  a l t e r n a t i v e to r e p l a c e  However, to what e x t e n t  financed  trans-  changing  development through d e c e n t r a l i z e d  the  this strategy  can  c o u n t r i e s ' s i t u a t i o n s , i n which a u t h o r i t a r i a n  so endemic, i s q u e s t i o n a b l e .  institutional  thousand  i s the a p p r o p r i a t e  Douglass, 1975  travel  d i s t r i c t would be  a r e a s , and  in favor o f a g r i c u l t u r e .  viewed as a p r o m i s i n g  developing  a  hour's  to 150  a t o o l , at l e a s t , to slow down u r b a n i z a t i o n ,  development can  kilo-  thousand i n h a b i t a n t s with  f u n c t i o n s o f the  d e c i s i o n making (Friedmann and  As  supplies  Normally i t would have  (or a p p r o x i m a t e l y one  from the primate c i t y  terms o f t r a d e  district  of  s u b s t i t u t i n g v o l u n t e e r work f o r t a x e s ,  devising a policy of spatial  fit  to 25  kilometers  suggested t h a t the a g r o p o l i t a n  and  to  urban development through the e s t a b l i s h m e n t  "agropolitan  time by b i c y c l e ) and  crops  7-20).  main i d e a o f the a g r o p o l i t a n  integrate rural  o f cash  and  political  Would the  a u t h o r i t a r i a n regime a l l o w  Would the  rich e l i t e  I t would r e q u i r e  reform  to adopt t h i s  far strategy.  s e l f government a t l o c a l  v o l u n t a r i l y give up both p o l i t i c a l  level?  power and  wealth  by  33  to permit the  r e a l i z a t i o n o f these goals?  The  p r o m i s i n g a l t e r n a t i v e development s t r a t e g y on  the answer to these  The strategy  search has  agropolitan the  continued.  One  development s t r a t e g y had Labour O f f i c e (ILO)  been emerging from the  1969.  I t was  based on  conventional  the  advocated the  t h i r d world c o u n t r i e s .  the  not  recognizes  s u f f i c e , and  i n the  t h i r d world  Conceptually,  certain  irrespective of should  t h a t there  1976  be  jobs.  employment-oriented i s a need to  i n e q u a l i t y (ILO,  World Employment  1976).  Conference  approach to development  nations.  b a s i c needs have two  s h e l t e r and  by and  elements.  f o r the  The  for private  c l o t h i n g are o b v i o u s l y  household equipment and  services provided  that this  b a s i c needs s t r a t e g y as an  c e r t a i n minimum requirements o f a f a m i l y adequate food,  return  to poverty and  r e c o g n i t i o n , the«IL0 at the  f o r m a l l y developed a new  approach  l a r g e s t number o f p r o d u c t i v e  i n t i m a t e l y connect employment i s s u e s this  This  recognition that instead of a l l o c a t i n g invest-  y e a r s l a t e r , however, ILO  Based on  " b a s i c needs"  income d i s t r i b u t i o n i m p l i c a t i o n s . , the c h o i c e  s t r a t e g y , by i t s e l f , w i l l  1  ILO's World Employment Program launched i n  those p r o j e c t s which c r e a t e d Several  Douglass  been f o r m a l l y p r e s e n t e d i n Nagoya,  ment funds to p r o j e c t s t h a t y i e l d e d the h i g h e s t employment and  extent,  development  y e a r a f t e r Friedmann's and  approach to development i n the had  depends, to some  this  questions.  f o r an a l t e r n a t i v e to the  International  a p p l i c a b i l i t y of  furniture.  The  first  includes  consumption:  i n c l u d e d , as would  be  second i n c l u d e s e s s e n t i a l  community at l a r g e , such as s a f e  drinking  34  water, s a n i t a t i o n , p u b l i c t r a n s p o r t and (ILO,  1976  p.  t i o n o f b a s i c needs.  growth are both r e q u i r e d  The  strategy  focuses  s i d e ; there  must be adequate goods and  and,  same time, t h e r e  poor to buy  educational  these goods and  on  to a c h i e v e the  the  supply  and  in order  When the  the  services.  In s h o r t , the  b a s i c needs  to improve t h e i r well  s t r a t e g y o r i g i n a t e d , i t was  c r i t i c i z e d on  approach and  c l e a r r e l a t i o n s h i p between the  economic development  between p r o d u c t i o n  plans  (e.g. and  the  i s i n i m i c a l to basic  s a t i s f a c t i o n o f b a s i c needs  per c a p i t a income).  Ensuring  consistency  e f f e c t i v e demand i s another o b s t a c l e  required  short cut  growth.  For example,  strative  (1981) concludes t h a t the  that  needs  Changes i n p o l i t i c a l , economic and  Lee  and  grounds  implementing t h i s s t r a t e g y . s t r u c t u r e s would be  strategy  goods  s t r a t e g y would imply i n terms o f s p e c i f i c economic p o l i c i e s .  and  the  being.  Indeed, i t i s not easy to secure agreement on what the  i s no  demand  must be adequate p u r c h a s i n g power by  the b a s i c needs approach i s a w e l f a r e  there  satisfac-  s e r v i c e s o f f e r e d to poor people  aims a t i n c r e a s i n g the access o f the world's poor to v i t a l services  facilities  32).  R e d i s t r i b u t i o n and  a t the  h e a l t h and  to make t h i s s t r a t e g y  to  admini-  operate.  b a s i c needs approach does not o f f e r a simple  f o r s o l v i n g the problem o f mass p o v e r t y .  He  states:  Apart from the r a t h e r obvious p o i n t t h a t a r e d i s t r i b u t i o n o f wealth and income w i l l be r e s i s t e d by s t r o n g l y entrenched i n t e r e s t s , i t i s a l s o important to r e a l i z e t h a t seemingly innocuous p r e s c r i p t i o n s such as ' g r e a t e r d e c e n t r a l i z a t i o n ' and ' g r e a t e r l o c a l s e l f - r e l i a n c e ' conceal p o t e n t i a l c o n f l i c t s o f interest. The o l d p a t t e r n o f development based on 'top down' c e n t r a l i z e d p l a n n i n g has c r e a t e d vested i n t e r e s t s which would r e s i s t a s h i f t towards g r e a t e r d e v o l u t i o n o f power to r e g i o n a l  35  and l o c a l  units.  To l e a d e r s o f the t h i r d w o r l d p r e o c c u p i e d w i t h m o d e r n i z a t i o n and the e x t e n s i o n o f n a t i o n a l power, ' b a s i c n e e d s ' i s u n l i k e l y to prove a t t r a c t i v e as a r a l l y i n g c a l l to i n s p i r e n a t i o n a l m o b i l i z a t i o n (p. 121).  36  6.  C o n c l u d i n g Remarks  The  balanced and  unbalanced  i s s u e s i n the 1950's.  The  growth t h e o r i e s became c o n t r o v e r s i a l  balanced  growth t h e o r i s t s argued  ment s h o u l d be d i v e r s i f i e d over a broad o t h e r hand, the unbalanced  throughout key  the n a t i o n a l  range o f i n d u s t r i e s .  growth t h e o r i s t s argued  i n e f f i c i e n t and i n e f f e c t i v e  that invest-  urban areas f o r c o n c e n t r a t e d investment  the  t h a t i t would be  to spread developmental  t e r r i t o r y ; they argued  On  investments  thinly  t h a t i t i s b e t t e r to s e l e c t  programs t h a t would  benefit  from economies o f s c a l e and e x t e r n a l economies o f a g l o m e r a t i o n .  During the l a s t t h r e e decades, most governments have a p p l i e d the "unbalanced  growth" t h e o r y to t h e i r development e f f o r t s .  has been r e a s o n a b l y e f f e c t i v e i n r a i s i n g GNP. increasingly evident, p a r t i c u l a r l y  However, i t has  f i n d i n g s o f most s c h o l a r s tend to say t h a t the unbalanced the growth c e n t e r s  1  developing  does not a u t o m a t i c a l l y reduce  i n e q u a l i t y o r p r o v i d e s u f f i c i e n t p r o d u c t i v e employment.  based on  n o t i o n (urban i n d u s t r i a l  i s wrong.  Richardson  experiences  growth paradigm,  s t r a t e g y ) i s not unemploy-  They imply t h a t the p r i n c i p l e o f p o l a r i z a t i o n  and Richardson  i n L a t i n America,  poverty  Empirical  a b l e to s o l v e the problem o f p o v e r t y , income d i s t r i b u t i o n , and ment i n d e v e l o p i n g n a t i o n s .  policy become  from the e x p e r i e n c e o f the  c o u n t r i e s , t h a t r a p i d growth i n GNP and  This  argued  (1975), however, based on  their  that:  The disenchantment with growth c e n t e r p o l i c i e s i n many c o u n t r i e s i s not evidence t h a t the p r i n c i p l e o f p o l a r i z a t i o n i s wrong. On the c o n t r a r y , i t r e f l e c t s the over-optimum and s h o r t - r u n time h o r i z o n o f r e g i o n a l p o l i c y - m a k e r s , the  37  f a i l u r e o f s u s t a i n e d p o l i t i c a l w i l l , the use o f d e f i c i e n t investment c r i t e r i a , bad l o c a t i o n a l c h o i c e s and l a c k o f i m a g i n a t i o n i n d e v i s i n g a p p r o p r i a t e p o l i c y instrument (p.  The can  argument a l o n g  be s i m p l i f i e d .  strategy.  the  The  l i n e o f development t h e o r i e s d i s c u s s e d  They argue t h a t major investment must c o n t i n u e to.be areas and  urban development would be a t the con-group are  the  t h a t attempts to d e c e n t r a l i z e .  c o s t o f f u t u r e economic growth.  advocates o f d e c e n t r a l i z e d investment and  development, though they b e l i e v e t h a t expansion o f GNP major goal  should  of national  of strategy  be  p o l i c y and  design,  d e c e n t r a l i z e d and  hierarchy, and  i n small  Ruddle, 1978  Rodwin  pp.  dispersed  to the lower end  towns, v i l l a g e s , and  rural  a c t u a l l y t r i e d to g r a f t the  for lagging areas.  for regional center  primary  investments  o f the  hinterlands  the  spatial  (Rondinelli  46-48).  (1963) has  with the n o t i o n  be  as the  they argue t h a t developmental  The  dispersed  should  view economic c r i t e r i a  extreme advocates by p r o p o s i n g a s t r a t e g y o f tion"  above  pro-group are the advocates o f a c e n t r a l i z a t i o n  c e n t r a l i z e d in metropolitan  standard  169).  views o f these  "concentrated-decentraliza-  However, what Rodwin suggested was  t h a t induced urban growth c e n t e r s  development p o l i c y .  Therefore,  two  should  consistent  be the  basis  i t i s viewed as a growth  strategy.  Having r e a l i z e d the n e g a t i v e development t h e o r i s t s have t r i e d and  Douglass  the  ILO  (1975) proposed an  e f f e c t o f the to search  growth c e n t e r  for alternatives.  "agropolitan  strategy, Friedman  development" s t r a t e g y  (1976) proposed a " b a s i c needs" approach.  Theoretically,  and  38  agropolitan  development and b a s i c  promising s t r a t e g i e s .  needs s t r a t e g i e s  can be viewed as  However, without r e s t r u c t u r i n g  economic and i n s t i t u t i o n a l  political,  frameworks o f the non s o c i a l i s t d e v e l o p i n g  countries,  i t i s hard to see the a p p l i c a b i l i t y o f these development  strategies  i n these  countries.  39  CHAPTER I I I  THE THIRD FIVE YEAR PLAN (REPELITA I I I ) , 1979/80-1983/84 AND REGIONAL DEVELOPMENT PLANNING  IN INDONESIA  In c h a p t e r I I , the t h e o r y o f development has been d i s c u s s e d and reviewed.  In t h i s c h a p t e r , R e p e l i t a  I I I (.1979/80-1983/84) and r e g i o n a l  development p l a n n i n g  i n Indonesia i s b r i e f l y  see  discussed  how the t h e o r i e s  o f regional  reviewed i n an attempt to  above r e l a t e t o the i d e a and implementation  development p l a n n i n g  i n Indonesia.  Today, Indonesia i s implementing i t s t h i r d Repelita  III i s a continuation  p a r t i c u l a r l y Repelita  and enhancement o f the p r e v i o u s  I I . L i k e the o t h e r two R e p e l i t a s , t h i s  III i s an i n d i c a t i v e plan programs and p r o j e c t s .  containing  t o a high  (especially the as  objectives, targets,  For R e p e l i t a  II).  For R e p e l i t a  f i r s t o b j e c t i v e o f development f o l l o w e d the second and t h i r d o b j e c t i v e s .  s t a t e d i n t h e Main O u t l i n e s  o f State  Repelita  I I I has been  by e q u i t y  I I I , equity  has been put as  by e f f i c i e n c y and s t a b i l i t y  These o b j e c t i v e s Policies  have been  (Garis-Garis  Negara-GHBN) known as the T r i l o g y o f Development tahun  plans,  I and I I , p r i o r i t y had  r a t e o f economic growth f o l l o w e d  f o r Repelita  This  policies,  The main d i f f e r e n c e i s t h a t R e p e l i t a  d i r e c t e d towards e q u i t y and j u s t i c e . been given  f i v e year plan.  Besar Haluan  (Ketetapan MPR No. IV  1978).  B r i e f l y , the f o l l o w i n g a r e t h e o b j e c t i v e s  clearly  o f Repelita I I I :  40  1.  Equitable  d i s t r i b u t i o n o f development and  towards a c h i e v i n g  2.  A hi gh  3.  Healthy and  The benefits The  j u s t i c e f o r the  people.  r a t e o f economic development growth.  dynamic n a t i o n a l  f i r s t objective, equity, to a l l s t r a t a o f the  stability.  addresses the  population  and  d i s p e r s a l o f development  to a l l geographic a r e a s .  second o b j e c t i v e , - e f f i c i e n c y , i s r e l a t e d to a s a t i s f a c t o r y r a t e  growth to i n c r e a s e and  social  i t s results  a per c a p i t a  s o c i e t y ' s r e s o u r c e base and  basis.  The  output on  an  of  absolute  third objective, stabilization, is  concerned with s t a b l e p r i c e s , f u l l  employment, and  stable  socio-political  conditions.  Emphasising the ted t h i s o b j e c t i v e Pemerataan) as  1.  The  importance o f e q u i t y , the  president  i n t o "Eight-Avenues o f E q u i t y "  has  elabora-  (Delapan J a l u r  follows:  d i s p e r s a l o f an adequate supply o f b a s i c needs, p a r t i c u l a r l y  o f food, c l o t h i n g and  shelter.  2.  The  d i s p e r s a l o f e d u c a t i o n and  health  facilities.  3.  The  dispersal of increasing  income.  4.  The  d i s p e r s a l o f employment  opportunities.  41  5.  The d i s p e r s a l o f o p p o r t u n i t i e s  to e n t e r b u s i n e s s a c t i v i t i e s .  6.  The d i s p e r s a l o f o p p o r t u n i t i e s  to p a r t i c i p a t e  activity,  particularly  The d i s p e r s a l o f o p p o r t u n i t i e s  8.  The d i s p e r s a l o f r e g i o n a l  it  to have  justice.  development programs.  As has been s t a t e d i n c h a p t e r I,  Repelita II,  development  f o r young people and women.  7.  a t the end o f R e p e l i t a I,  in  although i t  e q u i t y became an emerging i s s u e was not e x p l i c i t l y  mentioned  in  has always been the aim o f the government to improve  c o n d i t i o n s o f the l e s s developed s e c t o r s o r g r o u p s , and r e g i o n s s p e c i f i c programs, p r o j e c t s  the  through  and p o l i c i e s .  Government e f f o r t s to s o l v e the problem o f e q u i t y , which have developed s i n c e R e p e l i t a II  and c o n t i n u e i n R e p e l i t a I I I ,  development grants and s p e c i f i e d development g r a n t s . consist of provincial grant,  village  development g r a n t ,  grants and p r o v i n c i a l  district  consist  of:  Development  or municipal  grants  development  development program (PDP).  The  s p e c i f i e d development g r a n t s a r e : the p r i m a r y s c h o o l development h e a l t h c e n t e r development g r a n t and t r a n s m i g r a t i o n difference  development.  grant, The  between those two k i n d s o f grants i s t h a t the l a t t e r i s  n a r r o w l y s p e c i f i e d and they are s e c t o r a l development grants c o n t r i b u t e s  grants.  How each o f  to r e d u c i n g r e g i o n a l  d i s p a r i t i e s and unemployment i s b r i e f l y  these  inequality,  p r e s e n t e d below.  very  income  42  Provincial  Development Grant  Before R e p e l i t a ADO  II the  provincial financial  system was  ( A l l o k a s i Devisa Otomatis)--an Automatic Foreign  Allocation.  T h i s system a u t o m a t i c a l l y  10% o f i t s export e a r n i n g s .  I t was  based Exchange  a l l o c a t e d to each  found t h a t the ADO  to e x p o r t more and  backward r e g i o n s .  Since  Repelita  changed to "a minimum grant" The  b e n e f i t e d more than the  establishment at  the  and  II  "national  disparities.  plans  The  Board.(Bappeda)  ( p r e s i d e n t i a l decree No.  15,  In a d d i t i o n ,  with the n a t i o n a l  c o n s u l t a t i o n " , to c o o r d i n a t e  plan,  regional  the  plans,  c o n s u l t a t i o n " were e s t a b l i s h e d .  D i s t r i c t or Municipal  Development Grant  T h i s program began with R e p e l i t a  I.  development grant  unemployment.  grant  It i s  i s a c o r o l l a r y o f t h i s system.  to i n t e g r a t e r e g i o n a l  s o - c a l l e d "regional  grant.  l e s s developed areas than to the more  beginning o f Repelita  in order  region.  P r o v i n c i a l Development P l a n n i n g  1974)  been  p r o v i s i o n o f more  g r a d u a l l y minimize r e g i o n a l  o f the  dated March 18,  system has  used f o r r o u t i n e e x p e n d i t u r e s .  development funds to the  and  i s a kind o f unspecified  expected t h a t , through t h i s system, the  developed ones w i l l  were i n a  poor  f o r the l e a s t developed  p r o v i n c i a l development grant  However, i t cannot be  I I , the ADO  region  system  generated more imbalance as the more developed r e g i o n s position  on  i s to m i t i g a t e  i s directed to:  The  main purpose o f t h i s The  use  1) l a b o r i n t e n s i v e a c t i v i t i e s ;  of 2)  the small  43  p r o j e c t s which are t e c h n i c a l l y easy to handle by d i s t r i c t o r m u n i c i p a l a g e n c i e s ; and 3.) p r o j e c t s which people and the development  d i r e c t l y b e n e f i t the  o f the r e g i o n .  Since the b a s i s o f the a l l o c a t i o n o f these funds i s p o p u l a t i o n , on the assumption t h a t the more p e o p l e , the b i g g e r the problem o f employment, t h e r e has been much c r i t i c i s m d i r e c t e d towards i t . As most o f the p o p u l a t i o n  live  i n Java ( a p p r o x i m a t e l y 6 4 % ) , i t i s  thought t h a t t h i s problem, though i t can reduce unemployment to some e x t e n t , may  c)  further create regional  V i l l a g e Development  Grant  The main purpose o f t h i s villages  disparities.  grant i s to induce development  through the "gotong royong"  d i f f e r e n c e between t h i s  (mutual  wage employment because  h e l p ) system.  grant and the f i r s t two  above i s t h a t the funds under t h i s system may  i n the The  grants mentioned  not be used f o r  l a b o r i s the c o n t r i b u t i o n o f the people as  a c o u n t e r p a r t o f the grant.  This  grant i s a l l o c a t e d e q u a l l y to  almost a l l v i l l a g e s , d i s r e g a r d i n g t h e i r s i z e , p o p u l a t i o n , and o f development.  I t has been  shown t h a t the grant i s very useful  i n encouraging people to p a r t i c i p a t e i n p r o v i d i n g f o r t h e i r immediate  needs.  level  own  In a d d i t i o n , the grant i s viewed by the v i l l a g e r s  as a token o f g r a t i t u d e o f the n a t i o n a l  government to them.  44  Provincial  Area Development Program (PPP)  T h i s program was designed USAID a s s i s t a n c e . ties o f local which w i l l  by the government o f I n d o n e s i a ,  1) improve t h e c a p a b i l i -  T h i s program seeks t o :  government t o undertake r u r a l  i n c r e a s e the p r o d u c t i v e  local  o f the r u r a l the  rural  poor; and 3) most i m p o r t a n t l y ,  and p r o c e s s - o r i e n t e d ,  to  i n c r e a s e the income  i n c r e a s e the income o f  T h i s program i s viewed as  i n t h a t i t attempts an i n t r o -  s p e c t i v e and e v o l u t i o n a r y approach to improving ment.  poor;  government agencies  government a c t i v i t i e s which w i l l  poor w i t h i n the p r o j e c t a r e a s .  experimental  development a c t i v i t i e s  c a p a c i t y o f the r u r a l  2) improve the c a p a b i l i t i e s o f key c e n t r a l support  with  l o c a l p r o j e c t manage-  So f a r , the budget f o r t h i s program i s d e r i v e d mainly from  f o r e i g n a s s i s t a n c e loans and g r a n t s .  The  1) i t i s g e n e r a l l y more  b a s i c assumptions o f t h i s program a r e :  effective  to c o n c e n t r a t e  one's e f f o r t s visible  on a few p r i o r i t y problems than to d i s p e r s e  in a l l directions;  impact and more e f f e c t i v e  a geographical  2) t h e r e  i s more l i k e l i h o o d o f  a d m i n i s t r a t i o n by m a i n t a i n i n g  focus w i t h i n t a r g e t t e d p r o v i n c e s ; 3) outputs  process-oriented;  4) t h e r e  i s a need f o r f l e x i b l e  must be  implementation.  Based on the assumptions mentioned above, the b a s i c approach to the design  of individual  PDP's has been t o :  socioeconomic-administrative p r o v i n c e s ; 2) s e l e c t limited  conditions within  a typical  number o f contiguous  1) i d e n t i f y the  geographical  participating  r e g i o n composed o f a  d i s t r i c t s w i t h i n the p r o v i n c e s ;  45  3) study i n more depth the s o c i o e c o n o m i c - a d m i n i s t r a t i v e  conditions  w i t h i n the a r e a , c o n c e n t r a t i n g on the c o n s t r a i n t s to r a i s i n g the  incomes o f the r u r a l  government  4) review s y s t e m a t i c a l l y a l l l o c a l  programs, a c t i v i t i e s ,  t a r g e t e d , on a s s i s t i n g situation;  poor;  f u n c t i o n s which a r e , o r c o u l d be  the r u r a l  poor t o improve t h e i r  economic  5) i d e n t i f y a l i m i t e d number o f i n t e r r e l a t e d  intervention  p o i n t s where o u t s i d e a s s i s t a n c e c o u l d r e s u l t i n s i g n i f i c a n t government p r o j e c t management improvements being achieved; activities,  and i n the program  6) d e s c r i b e and a n a l y z e these l o c a l  functions in s u f f i c i e n t detail  f o r improvement  i n the sought a f t e r  f o r each o f the p r o v i n c i a l  "thrusts"  (USAID, 1 978).  I t i s hoped t h a t the P r o v i n c i a l  Area Development  c o n s i s t o f numerous m u l t i - s e c t o r a l  small  Program w i l l  p r o j e c t s which w i l l  a d i r e c t e f f e c t on the income o f the poor p e o p l e . the  programs,  7) design a broad and n e c e s s a r i l y  p r e l i m i n a r y implementation plan identified  goals  to determine the types  and magnitude o f a s s i s t a n c e which would r e s u l t program improvements; and  local  have  The nature o f  program r e q u i r e s a bottom up approach o r "development from  below"  (Stflhr, 1981 ).  The implementation o f the PDP began i n the p r o v i n c e o f C e n t r a l  Java  and Aceh i n 1978/1979 f o l l o w e d by Bengkulu, South Kalimantan, Nusa Tenggara Timur and East Java i n 1979/1980 and West Java and Nusa Tenggara Barat i n 1980/1981.  46  e)  P r i m a r y School and H e a l t h Center Development Grants  These two k i n d s o f development grants and t r a n s m i g r a t i o n c l a s s i f i e d as a s p e c i f i e d development g r a n t s y s t e m . purpose o f t h i s  are  The main  grant system i s to speed up the s e c t o r a l d e v e l o p -  ment i n the r e g i o n s , and to o b t a i n a b e t t e r s p a t i a l d i s t r i b u t i o n facilities  i n the r e g i o n s .  of  The p r i m a r y s c h o o l and h e a l t h c e n t e r  grant system i s i n l i n e w i t h the b a s i c needs a p p r o a c h .  f)  Transmi g r a t i on  S i n c e the e a r l y 1 9 0 0 ' s t r a n s m i g r a t i o n  has c o n t i n u e d as an  important  program w i t h dual g o a l s o f r e l i e v i n g the p o p u l a t i o n burden i n Java and B a l i w h i l e s i m u l t a n e o u s l y d e v e l o p i n g the o t h e r r e g i o n s o f country.  In r e c e n t y e a r s the t r a n s m i g r a t i o n  been d i r e c t e d a t r e g i o n a l  development goals w i t h the  o f Java b e i n g de-emphasized i n o f f i c i a l Repelita III,  p o l i c y has  the  officially  depopulation  p o l i c y statements.  During  h a l f a m i l l i o n families of Java's population w i l l  be  moved t o the Outer I s l a n d s .  From the view p o i n t o f the development grants d i s c u s s e d a b o v e ,  it  i s c l e a r t h a t t h e r e have been numerous programs which have been l a u n c h e d s i n c e R e p e l i t a I and R e p e l i t a I I . being continued. and i m p l i c i t l y  These e f f o r t s  In R e p e l i t a I I I r e f l e c t national  d i r e c t e d toward r e g i o n a l  policies  development.  i n t e n d e d to a c h i e v e b e t t e r e q u i t y , p a r t i c u l a r l y o f v i e w , but not l e s s i m p o r t a n t ,  these e f f o r t s  are  explicitly  These p o l i c i e s are  from the s p a t i a l  point  a l s o from the p e r s o n a l o r group  point  47  o f view.  I t has been r e a l i z e d by the government t h a t development cannot  be handled by the n a t i o n a l government alone.  Full  participation of a l l  l e v e l s o f government and o f the masses o f the people i s needed to achieve  the o b j e c t i v e o f development.  Despite  the f a c t t h a t n a t i o n a l government has p a i d more and more  a t t e n t i o n to the lower 1 e v e l s o f government, the a u t h o r i t y f o r development is s t i l l the  s t r o n g l y h e l d by the c e n t r a l government.  l a s t seven y e a r s , there  as a l o g i c a l  has been a change i n p l a n n i n g  during  organization  consequence o f p r e s i d e n t i a l decree i n 1974 c o n c e r n i n g  institution o f Provincial this  Conceptually,  Development P l a n n i n g  Board (BAPPEDA).  decree i t has been s t a t e d t h a t BAPPEDA i s r e s p o n s i b l e  the  Under  f o r the  c o o r d i n a t i o n and i n t e g r a t i o n o f a l l p l a n n i n g a c t i v i t i e s a t the p r o v i n c i a l level.  T h i s i m p l i e s t h a t there has been a d e v o l u t i o n o f p l a n n i n g  from the c e n t e r t o the lower l e v e l  o f planning.  seems to be o n l y i n an a b s t r a c t sense.  However, t h i s  or provincial  plans.  This  devolution  For example, the experience  shown t h a t BAPPEDA has not been s t r o n g enough to c o o r d i n a t e regional  tasks  unsuccessful  has  and i n t e g r a t e  attempt i s not merely  because o f the BAPPEDA's i n c a p a b i l i t y , but mostly because o f the o r g a n i z a tional central  structure i t s e l t .  The head o f the p r o v i n c i a l  government's r e p r e s e n t a t i v e f o r t h a t department i n the p r o v i n c e  concerned are one and the same p e r s o n .  As a c e n t r a l government's employee  he i s apt to hear c e n t r a l ' s i n s t r u c t i o n s r a t h e r than  Another example i s the f i n a n c i a l and  the lower l e v e l  intends  department and the  o f governments.  to give the p r o v i n c e s ,  provincial's.  r e l a t i o n s h i p s between the c e n t r a l The c e n t r a l government  certainly  d i s t r i c t s or municipalities a larger  48  s l i c e o f the n a t i o n a l  revenue.  T h i s i s e v i d e n c e d by c e n t r a l  government's c o n t r i b u t i o n to the  development i n Sulawesi  the p e r i o d o f 1973/74 to 1978/79 as  TABLE 2:  for  follows:  CENTRAL GOVERNMENT CONTRIBUTION  TO  DEVELOPMENT BUDGET tl973/74 to 1978/79) (PERCENTAGE)  1973/74  Province  1974/75  1975/76  1976/77  1977/78  1978/79  South Sulawesi  90.6  83.9  85.7  88.4  90.7  90.9  Central  69.9  75.5  83.5  80.7  82.9  86.5  86.9.  88.5  86.9  84.1  88.8  Sulawesi  -  Southeast Sulawesi North Sulawesi  67.7  77.5  66.4  84.3  83.1  87.2  Unweighted Average  78.8  80.9  81 .0  85.0  85.2  88.3  Source:  Cummings, H.  However, the determined by the through the  At the  use  (1980 P.11)  of this  BAPPENAS and  delegation  central level  entrusted  a u t h o r i t y to the  u n i t s , the o v e r a l l  board i s not o n l y a p l a n n i n g  responsibility for  Development P l a n n i n g  Board  o r g a n i z a t i o n , i t a l s o has  than  provinces.  ( J a k a r t a ) , although c e n t r a l government  to the N a t i o n a l  large  c e n t r a l - s e c t o r a l departments r a t h e r  of financial  ments have t h e i r p l a n n i n g is  c e n t r a l government budget i s by and  departplanning  (BAPPENAS).  budgetary  This  functions  49  i.e. all  the a l l o c a t i o n o f development e x p e n d i t u r e s p r o j e c t s and programs f i n a n c e d by the c e n t r a l  determined by the n a t i o n a l central  government s t i l l  government i n J a k a r t a .  .  So f a r ,  almost  development budget are It  seems t h a t  the  has a f e a r o f a l l o w i n g the d e v o l u t i o n o f power  and r e s p o n s i b i l i t y to go too f a r ,  g e t t i n g out o f hand and d e s t r o y i n g the  u n i t y o f I n d o n e s i a which has been so c a r e f u l l y n u r t e r e d o v e r the y e a r s s i n c e the o l d o r d e r was deposed.  B r i e f l y , based on the d i s c u s s i o n given a b o v e , a l t h o u g h t h e r e has been d e v o l u t i o n o f p l a n n i n g t a s k s to BAPPEDA o r the p r o v i n c i a l l e v e l ,  it  can be concluded t h a t the n a t u r e o f r e g i o n a l development p l a n n i n g i n Indonesia i s s t i l l  following primarily  "top-down" a p p r o a c h .  One c a n , however, argue t h a t by c o n s i d e r i n g the  presence o f p l a n n i n g i n s t i t u t i o n s regional  the "development from above" o r  a t p r o v i n c i a l and d i s t r i c t  levels,  development p l a n n i n g i n I n d o n e s i a a l s o i n c l u d e s a "bottom-up"  element.  8).  The Chairman o f the N a t i o n a l Development P l a n n i n g Board (BAPPENAS) i s a l s o M i n i s t e r o f S t a t e f o r Economy, Finance and I n d u s t r y (EKUIN), a s u p r a - c o o r d i n a t i n g department o f s t a t e , and a Chairman o f the Committee f o r Economic S t a b i l i z a t i o n .  50  CHAPTER IV  WEST PASAMAN AND ITS CRUCIAL PROJECTS  It  has been s t a t e d i n Chapter  I t h a t the WPDP team proposed  crucial  projects  crucial  p r o j e c t s , i . e . the road and o i l paljnri p r o j e c t s were s t r o n g l y  recommended.  f o r the ten y e a r p e r i o d 0975-1 985).  five  The f i r s t two  How do these two p r o j e c t s f i t i n t o the socio-economic  c o n d i t i o n s o f the study area and what a r e the l i k e l y impacts p r o j e c t s on t h e s o c i e t y ? t h e i r basic  food needs?  the main purpose  1.  of this  Socio-cultural  o f these  Have the people o f West Pasaman a l r e a d y met S e a r c h i n g o u t the answer t o these q u e s t i o n s i s chapter.  C o n d i t i o n s o f West Pasaman  Most o f the socio-economic  c o n d i t i o n s o f the study area  presented  here are taken  from the "Development Plan f o r West Pasaman/Sumatra"  WPDP (1975a).  West Pasaman i s p a r t o f the Kabupaten  in  ( d i s t r i c t ) Pasaman  the n o r t h e r n c o r n e r o f the p r o v i n c e o f West Sumatra.  I t comprises  the Kecamatan ( . s u b - d i s t r i c t ) , Talamau, Pasaman, Lembah M e l i n t a n g and Sungai  Beremas w i t h a p o p u l a t i o n o f 200,494 i n h a b i t a n t s i n 1980 o f  Manangkabau, T a p a n u l i , and Javanese The it  presence  origin  (census Penduduk Pasaman, 1980).  o f these three e t h n i c groups i n West Pasaman  distinguishes  from E a s t Pasaman i n which the l a s t two groups are n e g l i g i b l e .  Of the t h r e e e t h n i c groups r e s i d i n g i n West Pasaman, the Minangkabau group was the f i r s t  to occupy and use the a r e a .  As the f i r s t  settlers,  51  they possessed  the r i g h t t o "tanah  M a n d a h i l i n g group i s viewed i.e.  u l a y a t " (communal l a n d ) .  as immigrants  The  from the s u r r o u n d i n g a r e a s ,  the area to the north o f West Pasaman known as T a p a n u l i .  e x i s t e n c e o f Javanese  i n West Pasaman was  Batak  started  under the Dutch  ment by b r i n g i n g i n i n d e n t u r e d l a b o u r e r s (buruh kontrak) developed o i l palm e s t a t e i n Ophir i n 1930.  The  S i n c e 1953  govern-  f o r the newly . the  Indonesian  government has been encouraging a t r a n s m i g r a t i o n p r o j e c t i n West Pasaman, a d d i n g Javanese new  t r a n s m i g r a n t s to e x i s t i n g s e t t l e m e n t s and i n t r o d u c i n g  s e t t l m e n t schemes.  U n l i k e the f i r s t Javanese  came as i n d e n t u r e d l a b o u r e r s , the Javanese in  the tanah  i n West Pasaman,  who  t r a n s m i g r a n t s were r e s e t t l e d  u l a y a t (communal l a n d s ) w h i l e the former o c c u p i e d the  government l a n d s , i . e . the Ophir o i l palm c o n c e s s i o n .  West Pasaman happens to c o n t a i n the major c o n s t i t u e n t s which make up the p a t t e r n o f Indonesian  c u l t u r e as a whole.  c u l t u r e s meet, namely,, the m a t r i l i n i a l patrilinial group). in  The  (the Batak M a n d a h i l i n g ) and  cannot  In  (the Minangkabau group), the the b i l a t e r a l  d i f f e r e n c e s i n the area o f o r i g i n  e t h n i c groups m a i n t a i n i n g t h e i r own be e a s i l y  Here the t h r e e p r i n c i p a l  Javanese  and c u l t u r e have r e s u l t e d  characteristics.  As a r e s u l t , they  assimilated.  a d d i t i o n to c u l t u r a l  d i f f e r e n c e s between the t h r e e e t h n i c  a d i f f e r e n t i n t e r p r e t a t i o n o f the same r e l i g i o n s  groups,  (Islam) has l e s s e n e d  the p o s s i b i l i t y o f a s s i m i l a t i o n between the Javanese groups.  (the  and the Minangkabau  Land tenure problems haye a l s o made t h i s s i t u a t i o n become more  52  c o m p l i c a t e d e s p e c i a l l y f o r t h e Javanese s e t t l e r s who c u l t i v a t e ulayat  (communal l a n d ) .  Although tanah  tanah  the n i n i k mamak (.informal l e a d e r s ) v o l u n t a r i l y r e l e a s e d t h e i r  u l a y a t to be used by t h e Javanese t r a n s m i g r a n t s , they  expected  and even s t i p u l a t e d , t h a t the Javanese s e t t l e r s s h o u l d be completely 9)  i n c o r p o r a t e d i n t o the adat condition i s really  ' community, i . e . adat Minangkabau.  difficult  to f u l f i l  s i n c e adat Minangkabau, as a  system o f i d e n t i f i c a t i o n , i s s t r e n g t h e n e d Islamic r e l i g i o n .  by i t s r e l a t i o n  and  to the  I t i s t r u e t h a t the Javanese r e s e t t l e r s a r e Moslem,  however, f o r the Javanese i n West Pasaman, r e l i g i o n central  This  does n o t p l a y a  r o l e i n t h e i r l i v e s and does n o t c o n s t i t u t e a matter o f l i f e  death as f o r the Minangkabau and Batak M a n d a h i l i n g who l i v e i n  West Pasaman.  The  d i f f e r e n c e s i n the r e l i g i o n  interpretation  i s e v i d e n c e d by  the C a t h o l i c m i s s i o n a r i e s ' a c t i v i t i e s i n the t r a n s m i g r a n t (WPDP, 1975a pp. 91-92).  settlements  Those a c t i v i t i e s were not met with  hostility  from t h e Javanese s e t t l e r s as they were by the Minangkabau and the Batak M a n d a h i l i n g any o t h e r r e l i g i o n cultural to  life.  groups.  For t h e Minangkabau s o c i e t y , p e n e t r a t i o n o f  i s c o n s i d e r e d as b e i n g p e r i l o u s f o r i t s own s o c i o -  The r e a d i n e s s o f n i n i k mamak ( i n f o r m a l l e a d e r s )  bestow t h e i r communal  l a n d on the Javanese t r a n s m i g r a n t s was based  on the e x p e c t a t i o n t h a t the Javanese s e t t l e r s would be observant o f t h e i r  9)  Adat i s a p a r t o f c u l t u r e which i s p a r t i c u l a r l y concerned with the arrangement o f the t r a i t s o f a t r i b e . I t can take e i t h e r a w r i t t e n or unwritten form, but i t i s mostly u n w r i t t e n .  53  (Minangkabau) s o c i o - c u l t u r a l s e t t l e r s who  would l i k e  communal l a n d a l l o t t e d  life.  T h i s i m p l i e s t h a t any  Javanese  to c o n v e r t h i s r e l i g i o n must a l s o to him.  r e l e a s e the  Thus, f o r the Javanese who  communal l a n d t h e r e i s no freedom  to choose  cultivate  to c o n v e r t t h e i r  Keeping these f a c t s i n mind, one might expect t h a t t h i s c o n t r a d i c t i o n would be more obvious , i f the two  ethnic  groups  religion.  social (Minangkabau  and Javanese) p a r t i c i p a t e d i n the p r o j e c t which i s l o c a t e d on the government l a n d l i k e the O p h i r a r e a , as adat Minangkabau i s no l o n g e r a p r e c o n d i t i o n f o r Javanese not wish  The  r e s e t t l e r s , w h i l e the indigenous people  the presence o f t h e i r adat  two  intruders.  e t h n i c groups, Minangkabau and Batak  known as "perantau", or the people who t h a t both e t h n i c significant  groups  difference i n their motivation.  fact  A l a c k o f good l a n d f o r  f o r t h i s e t h n i c group  M a n d a h i l i n g , can to m i g r a t e ^ .  The  f o r Minangkabau people to migrate can, to some e x t e n t , be  a t t r i b u t e d to t h e i r m a t r i l i n e a l  10)  D e s p i t e the  possess the same d e s i r e to m i g r a t e , t h e r e i s a  as a main reason  main reason  M a n d a h i l i n g , are  l i k e to m i g r a t e .  farming i n T a p a n u l i , the o r i g i n area o f the Batak be viewed  do  system.  L i k e many o t h e r m a t r i l i n e a l  D e f o r e s t a t i o n o f "cagar alam" ( w i l d l i f e f o r e s t ) i n Panti by l a n d s q u a t t e r s i s the evidence o f t h i s . In summer 1980, I was t o l d by Bupati ( r e g e n t ) o f Pasaman t h a t these l a n d s q u a t t e r s are people from T a p a n u l i . I happened to meet some o f these s q u a t t e r s before I reached West Pasaman, a l l o f them s t a t e d t h a t they were not s q u a t t e r s because they gave some money to the l o c a l o f f i c i a l o f "Dinas Kehutanan" ( f o r e s t r y s e r v i c e ) . They a l s o s t a t e d t h a t they would l i k e to farm, but they d i d not have access to the l a n d .  54  societies i t i s likely  that a "decisive  h o l d i s h e l d by the w i f e .  r o l e " i n a Minangkabau house-  Nairn 0 9 7 6 ) p o i n t e d o u t t h a t t h i s  "decisive  r o l e " has an i n f l u e n c e on the d i v o r c e r a t e s and polygamous a f f a i r s as well  as on the m i g r a t i o n  Reducing  emmigration  rate.  from the area o f West Pasaman i s one o f . t h e  development o b j e c t i v e s s p e c i f i e d by the WPDP team (see C h a p t e r . I ) . T h i s i m p l i e s t h a t the e s t a b l i s h m e n t o f the road p r o j e c t and o i l palm project will like  prevent people  from m i g r a t i n g .  For the e t h n i c groups  Minangkabau and Batak M a n d a h i l i n g , i t might be wrong to assume  t h a t two c r u c i a l  projects will  be a b l e to keep them i n West Pasaman.  the c o n t r a r y , the road p r o j e c t w i l l  probably  speed  m i g r a t i o n process as i t p r o v i d e s good a c c e s s i b i l i t y  ID  Padang  .  On  up the r u r a l - u r b a n to urban areas  I t c o u l d be p o s s i b l e t h a t the road p r o j e c t w i l l  like  siphon o f f  the n a t u r a l r e s o u r c e s as.well as human r e s o u r c e s  ( e n t r e p r e n e u r s ) o f the  study area  (Myrdal, 1957;  ("backwash" o r " p o l a r i z a t i o n " e f f e c t )  Hirschman, 1958).  Another p o s s i b i l i t y i s t h a t the o i l palm p r o j e c t  p r e c i p i t a t e the exodus o f the r u r a l project will  i s implemented, t h e r e w i l l  For example, i f the o i l palm  be a p o s s i b i l i t y  widen income d i s p a r i t i e s o f the r e s i d e n t s .  not p a r t i c i p a t e i n the p r o j e c t w i l l participants. job  poor.  that i t  The r e s i d e n t s who do  be l e s s prosperous  As a r e s u l t the former w i l l  will  than  project  p r o b a b l y t r y to seek o t h e r  o p p o r t u n i t i e s i n urban a r e a s , e.g. Padang; the road p r o j e c t  will  enable them to do s o . Once they decide t o move t o an urban a r e a , t h e r e will  be a v e r y small p o s s i b i l i t y o f t h e i r  going back to West Pasaman  11)  I f the road p r o j e c t was a l r e a d y i n o p e r a t i o n , the r u r a l people o f West Pasaman can reach Padang w i t h i n 3 hours o r s o , a t p r e s e n t i t takes a t l e a s t 10 hours.  55  as  they w i l l  be ashamed o f being, c a l l e d  "coward"  (pengecut).  i s p a r t i c u l a r l y true o f the Minangkabau and Batak  A d m i n i s t r a t i v e l y , the nagari government system i n I n d o n e s i a .  This  groups.  ( v i l l a g e ) i s the.lowest l e v e l The presence o f the v i l l a g e  o f the  council  o f r e p r e s e n t a t i v e s (Dewan Perwakilaa Rakyat Nagari o r DPRN) and t h e traditional  village  council  of v i l l a g e administration Sumatra) d i f f e r was  (Kerapatan N a g a r i ) makes the mechanism  i n the study area  from the r e s t o f Indonesia  to c o n s i s t o f r e p r e s e n t a t i v e s  the community. (informal pandai  The t r a d i t i o n a l  l e a d e r s ) , a l i m ulama  (pundits)  (village  The  functions  Figure  1).  social  wali  nagari  groups i n  v i l l a g e c o u n c i l , composed o f n i n i k mamak (.religious d i g n i t a r i e s ) and c e r d i k  as an a d v i s o r y  committee t o the w a l i  nagari  i s a s o r t o f mayor who i s nominated and e l e c t e d by  head a r e s a n c t i o n e d compensation  f o r a term o f f i v e y e a r s .  head o f the v i l l a g e community, and as such, v e s t e d  government's a u t h o r i t y .  He i s with the  Thus, s p e c i a l r i g h t s and d u t i e s o f the v i l l a g e  by the government, which p r o v i d e s  him with p a r t i a l •  f o r the time and l a b o r expended t o perform h i s work.  n i n i k mamak which i s bound up with a l i m ulama and c e r d i k  to form kerapatan n a g a r i , p l a y s  administration.  a decisive role i n village  Without the consent o f these t r a d i t i o n a l  f u n c t i o n a r i e s , h a r d l y any e n t e r p r i s e can be c a r r i e d out. experts,  The DPRN  head).  the o f f i c i a l  pandai  (see  from t h e v a r i o u s  the v o t i n g i n h a b i t a n t s o f the v i l l a g e  The  (and the r e s t o f West  they a r e s t i l l  responsible  village S i n c e , as adat  f o r many spheres o f d a i l y  village  56  BAGAN MEKANISME PEMERINTAHAN NAGARI MECHANISM of NAGARI ADMINISTRATION  Kerapatan Nagari - Ninik Mamak - Alim Ulama - Cerdik P a n d a i  Wali Nagari  D P R N  a — _  Sekretaris Nagari  (Legislative)  Ninik Mamak Ccrdik Pandai  Alim Ulama  Kcpala Kaum Kcpala Waris  Anak  Kemenakan  Rakya t  Command Komando  Coordination Koordinasi  Election Pemilihan  Informal Connection Perhubungan Informil  57  life  and  due  considered  to t h e i r  high s o c i a l  be  Recently,  stumbled over the o p p o s i t i o n o f the adat f u n c t i o n a r i e s ,  to q u i t h i s o f f i c e before  h i s f i v e y e a r term e l a p s e d  I t i s not an easy task to govern a v i l l a g e with powerful  s t a n d i n g , they can  as the backbone o f Minangkabau v i l l a g e s o c i e t y .  the w a l i nagari who had  unchallenged  group behind  the  such a  (WPDP, 1975a).  traditionally  scenes.  With r e g a r d to the nagari a d m i n i s t r a t i o n i n West Pasaman, more s e r i o u s problems might a r i s e where t r a n s m i g r a t i o n schemes have moved i n t o the l i v i n g space o f t r a d i t i o n a l deeply  rooted c u l t u r a l  this  R e f l e c t i n g the  d i f f e r e n c e s between the Javanese and  Minangkabau, the r e s e t t l e r s Minangkabau s o c i a l  groups.  1  the  communities are i n c o r p o r a t e d i i i the  system o n l y i n the a d m i n i s t r a t i v e sense, and  i n c o r p o r a t i o n i s very  incomplete.  even  58  2.  Economic P a t t e r n s  A g r i c u l t u r e i s the most important  s e c t o r o f West Pasaman s 1  economy.  I t accounts  about 80%  o f the p o p u l a t i o n draw the m a j o r i t y o f t h e i r income from t h i s  sector.  f o r an e s t i m a t e d 66% o f the r e g i o n a l product  Rice c u l t i v a t i o n , i n terms o f the acreage  dominant a g r i c u l t u r a l correlates  very c l o s e l y with  l a r g e r agglomerations reflected  s e c t o r i n West Pasaman. the d i s t r i b u t i o n  o f Minangkabau and  cultivated,  Wet  rice  i s the  cultivation  o f the p o p u l a t i o n .  Bakak M a n d a h i l i n g  by r e l a t i v e l y l a r g e areas o f sawah; e i t h e r  and  The  groups are  normal sawah  (as  i n the case o f T a l u , Cubadak) o r more e x t e n s i v e l y used swamp r i c e  fields  (south o f Ujung Gading).  the  A l l the o t h e r sawah areas  c o i n c i d e with  l a r g e t r a n s m i g r a t i o n schemes (Desa Baru, K i n a l i , Kota t i n g the h i g h e r i n t e n s i t y  o f a g r i c u l t u r e i n these  Baru) thus  settlments.  o f market a c c e s s , Javanese small hoi ders s t i l l focus on wet which serves as both  Besides and in  the main food and  Irrespective  rice  o t h e r s p i c e s , coconut  and  cultivation  crop.  r i c e c u l t i v a t i o n , p e r e n n i a l c r o p s , such as rubber, c o f f e e are c u l t i v a t e d .  cloves  Rubber i s grown  Paraman Ampalu, S i l a p a n g , P a r i t and Simpang D i n g i n , w h i l e  o t h e r s p i c e s are c o n c e n t r a t e d and  cash  indica-  cloves  and  i n the core area around Simpang Empat  a l o n g the. road to Ujung Gading and  i n the Batak M a n d a h i l i n g  areas  near Paraman Ampalu.  Dry l a n d c u l t i v a t i o n intensity, pindah).  permanent  o f annual  crops occur i n two  (tegalan) or s h i f t i n g c u l t i v a t i o n  Most o f the permanent dry l a n d c u l t i v a t i o n  systems o f (ladang  different  berpindah-  o f the annual  crops  59  is concentrated tion i s s t i l l  i n the core area around Simpang Empat.  w i d e l y p r a c t i s e d i n West Pasaman.  West Pasaman area covered l a t e n t reserve  are a g r i c u l t u r a l l y  is  l a n d use data  (.2,185 h a ) , coconut  or cinnamon  form o f a g r i c u l t u r e .  I t i s estimated  Cor roughly 8,000 ha)  The average r o t a t i o n  i s about 7 to 8 years  the main crop c u l t i v a t e d  cloves  Roughly, 43% o f the  under secondary v e g e t a t i o n  used each y e a r .  shifting cultivation  Agricultural  area  cultiva-  by secondary v e g e t a t i o n can be c o n s i d e r e d as a  f o r t h i s most e x t e n s i v e  t h a t 4% o f the t o t a l  Shifting  periods o f  CWPDP, 1975a).  f o r West Pasaman i n 1974 shows t h a t  (.10,863 ha) f o l l o w e d by rubber (2,077 h a ) , c o f f e e (1 ,384  C665 ha) (.WPDP, 1 975a).  e x c l u s i v e l y run by s m a l l h o l d e r s .  rice  (6,537 ha),  ha) c a s s i a vera  A g r i c u l t u r e i n West Pasaman today i s  The d a i l y working time r a r e l y exceeds  s i x hours with an average o f two persons p e r f a m i l y spending  most o f t h e i r  time on farm work.  The in  marketing o f a g r i c u l t u r a l  produces i n West Pasaman takes  v i l l a g e markets and through d e a l e r s and agents.  daily  goods a r e traded  by the farmers' products  wives.  In t h e market  price of agricultural  The  d e a l e r s have a s t r o n g i n f l u e n c e on a g r i c u l t u r a l  a r e r e l a t e d t o the h a r v e s t product  f l u c t u a t i o n s a r e two reasons  the p o s i t i o n o f d e a l e r s i n r e l a t i o n t o the s m a l l h o l d e r s marketing system by a chain o f middlemen operates  and  Csystem i j o n ) .  shortage  prices. which make  i n West Pasaman.  f o r the s m a l l h o l d e r i s the f r e q u e n t combination C r e d i t s are mostly  times.  so s t r o n g .  detrimental credits  (pasar)  The v a r i a t i o n s i n volume  and  S c a t t e r e d supply and seasonal  place  A Most  o f marketing  given d u r i n g seasons o f  e i t h e r i n k i n d - - c a l c u l a t e d at the high p r i c e s then  v a l i d — or  60  i n cash which does n o t buy very much a t t h a t time.  When these  credits  are r e p a i d by the s m a l l h o l d e r a f t e r h a r v e s t , a much lower  price  Thus, the i n t e r e s t can reach as much as a hundred p e r c e n t  annually.  The main reason l a c k o f the  farmers'  institutional producer's  f o r the c o n d i t i o n o f the marketing response  r e a c t i o n s to p r i c e d e c l i n e i n rubber  p r i c e s observed  an almost  complete p r o d u c t i o n s t o p .  their activities  d u r i n g 1974/75 r e s u l t e d i n  If prices fall  which ensures  below t h i s p o i n t they change  on q u i c k l y opened up dry l a n d  F o r e s t r y and f i s h i n g are a l s o economic a c t i v i t i e s Almost one h a l f o f the area i s covered o f West Sumatra s c o a s t l i n e 1  administered forests.  the purchase o f a  towards food crop p r o d u c t i o n such as dry r i c e ,  cassava and sweet potatoes  West Pasaman.  For example,  The minimum p r i c e f o r rubber i s  by the s m a l l h o l d e r s a t a l e v e l  minimum q u a n t i t y o f r i c e .  i n the  (.WPDP, 1975a) r e v e a l t h a t the  f l u c t u a t i o n s are very q u i c k .  the sharp  calculated  system i s n o t the  to market i n c e n t i v e s , but l i e s  s e t up. V a r i o u s o b s e r v a t i o n s  prevails.  by primary  i n West Pasaman.  I s l a n d s ) belongs to  About t w o - t h i r d s o f the e x i s t i n g primary  A small q u a n t i t y o f wood f o r l o c a l  (ladang).  f o r e s t and about 25%  ( e x c l u d i n g the Mentawai  by the f o r e s t r y s e r v i c e (Dinas  maize,  forests are  Kehutanan). as government use i n c o n s t r u c t i o n and  f u r n i t u r e making and f o r f i r e wood i s cut a l l over the a r e a , p r o v i d i n g an additional  income f o r l o c a l  farmers  and f i s h e r m a n .  Roughly 10% o f West Pasaman's p o p u l a t i o n depend w h o l l y , o r p a r t i a l l y , on  fishing.  fishermen  From WPDP f i e l d  s u r v e y s , i t was gathered  that nearly a l l  i n West Pasaman are engaged i n a g r i c u l t u r e d u r i n g the n o n - f i s h i n g  61  season.  F u r t h e r m o r e , o l d p e o p l e , women and c h i l d r e n , who do not  partici-  pate i n f i s h i n g f i n d p a r t time o c c u p a t i o n s a p a r t from a g r i c u l t u r e , i n p r o d u c t i o n of s t r a w f o r c i g a r e t t e s boat b u i l d i n g and o t h e r  Cfrom n i p a palm l e a v e s ) , i n  the  trade,  handicrafts.  Simple p r o c e s s i n g f o r the p r o d u c t i o n o f food s t u f f s , b u i l d i n g m a t e r i a l s , f u r n i t u r e and o t h e r everyday, u t e n s i l s can be found throughout  the r e g i o n .  T h i s household i n d u s t r y i s done by very s m a l l e n t e r p r i s e s u s i n g the s i m p l e s t o f equipment and p r o d u c i n g p r e d o m i n a n t l y  f o r the l o c a l m a r k e t .  the p r o c e s s i n g u n i t s are run by p a r t time farmers and f o r e s t r y In view o f the o r g a n i z a t i o n o f these a c t i v i t i e s , i t  i s hardly  Very o f t e n laborers. justified  to speak o f a c l e a r l y d i s c e r n i b l e secondary s e c t o r o f the economy.  On the w h o l e , p r o c e s s i n g , both o f a g r i c u l t u r a l  and f o r e s t r y  products  are home-market i n d u s t r i e s , f o l l o w i n g a very l o c a l and s l o w l y expanding demand.  P r o c e s s i n g p l a n t s w o r k i n g f o r e x p o r t are few i n number and  employees.  Rubber s h e e t s are the o n l y ones to be e x c l u s i v e l y e x p o r t e d ,  w h i l e o n l y small q u a n t i t i e s o f o t h e r p r o d u c t s such as c o f f e e , cassava chips  (kerupuk)  and s p i c e s are s o l d o u t s i d e the r e g i o n .  Among the wood  m a n u f a c t u r i n g e n t e r p r i s e s , boat b u i l d i n g i n A i r Bangis and Sasak i s for i t s export-orientation.  It  notable  c a t e r s not o n l y to the demand o f l o c a l  f i s h e r m e n , but a l s o f o r s h i p s up to 100 DWT o r d e r e d by c l i e n t s from Padang.  E a r n i n g s o f the e n t r e p r e n e u r s i n the study a r e a are s m a l l , not above the f a r m e r s ' activities  a v e r a g e , and r i s k i s minimal s i n c e the  are o f t e n o n l y a source o f a d d i t i o n a l  non-agricultural  income f o r the  families.  Household i n d u s t r y i n West Pasaman does not seem to r e q u i r e s p e c i a l o r a l a r g e amount o f c a p i t a l .  skills  62  3.  B a s i c Food Needs o f the West Pasamanian  Indonesia i s well it  known as an a g r a r i a n c o u n t r y .  has not been s e l f - s u f f i c i e n t i n food.  an average these  o f 460 thousand  figures,  thousand  after  were even g r e a t e r , r i s i n g to 763  By 1977 t h i s  tons o f r i c e , 89.1 thousand  figure  had r i s e n  to 1,950  tons o f soybeans and 763  1960, w i t h i t s E i g h t - Y e a r O v e r a l l  thousand  attention  Development P l a n , the governto the food problem.  I t was  t h a t the country would be s e l f - s u p p o r t i n g i n r i c e by 1962.  However, t h i s  t a r g e t was not reached and d u r i n g the p e r i o d o f 1961-1964  more than one m i l l i o n  Since Repelita  tons o f r i c e were imported  annually.  I 0969/70-1973/74) food p r o d u c t i o n , p a r t i c u l a r l y  has r e c e i v e d very high p r i o r i t y .  Repelita  objectives.  III states that s e l f - s u f f i c i e n c y  i n food i s one o f i t s  o f farming p r a c t i c e s and expansion o f c u l t i v a t e d  A v a i l a b i l i t y o f i r r i g a t i o n networks i s c r i t i c a l particularly  continue to grow ( D i c k ,  The i n c r e a s e i n r i c e p r o d u c t i o n i s to be accomplished  by i n t e n s i f i c a t i o n  f o r these  efforts,  intensi fi cation.  The expansion  of cultivated  rice,  However, r i c e imports and o t h e r b a s i c  food i m p o r t s , such as soybeans and wheat and f l o u r 1979).  c o s t o f imports  ( D i c k , 1979 p. 35).  ment o f Indonesia p a i d s p e c i a l expected  a n n u a l l y and  tons i n 1956, and a c c o u n t i n g f o r 13% o f the t o t a l  tons o f wheat and f l o u r  In  During the p e r i o d o f 1921-1940  tons o f r i c e had to be imported  independence,  ( H a d i w i d j a j a , 1970 p.. 19). thousand  Nevertheless,  areas f o r r i c e c u l t i v a t i o n  i n Java  both areas.  63  through i n t e n s i f i c a t i o n  has almost reached i t s peak.  Hence, the  p r o m i s i n g areas f o r food p r o d u c t i o n are i n the Outer I s l a n d s .  In l i n e with the p r i n c i p l e o f the e q u i t a b l e d i s t r i b u t i o n o f development and s o c i a l  j u s t i c e , as the f i r s t o b j e c t i v e o f R e p e l i t a  I I I , the government  o f the p r o v i n c e o f West Sumatra has decided on the b a s i c human needs approach to meet the o b j e c t i v e o f development i n t h a t p r o v i n c e .  Based on  the r e s u l t o f the study conducted by the D i r e c t o r a t e o f Land Use  (Direktorat  T a t a Guna Tanah, 1976), u s i n g nine e s s e n t i a l  commodities (sembilan bahan  pokok) as a means o f d e t e r m i n i n g the poverty l i n e , the p r o v i n c i a l ment has i d e n t i f i e d the l a g g i n g areas which are c a l l e d In the meantime, West Sumatra has been d i v i d e d i n t o Regions  (A, B., C, D and E ) .  "kecamatan m i s k i n " .  five  Development  Development Region A, w i t h i t s c e n t e r  L u b u k s i k a p i n g , comprises a l l Kabupaten Pasaman. Development Sub-Region I and I I .  It i s divided  into  West Pasaman belongs to Development Sub-  Region I and t h r e e out o f i t s f o u r Kecamatan  (sub d i s t r i c t ) ,  Kecamatan Sungai Beremas, Kecamatan Talamau and Kecamatan are c l a s s i f i e d  govern-  as "Kecamatan m i s k i n "  (Repelita  namely  Lembah M e l i n t a n g  I I I , Sumatera B a r a t , p. 175).  Thus, Kecamatan Pasaman as the focus o f t h i s s t u d y , a c c o r d i n g to t h i s classification  i s e c o n o m i c a l l y aboye those three kecamatans.  The average c a l o r i e consumption i n West Sumatra o f 2,161 i s above the minimum requirement o f 1,900 c a l o r i e s . e s t i m a t e d t h a t 42% o f the p r o v i n c i a l requirements and most o f them l i v e  However,  calories i t is  p o p u l a t i o n are below the minimum,  i n Development Region A.  I t i s also  e s t i m a t e d t h a t the people i n Development Region A are the s m a l l e s t consumers o f p r o t e i n ,  f a r below 40 grams per c a p i t a per day ( R e p e l i t a I I I ,  64  Sumatera B a r a t ) .  By  using 1979 s t a t i s t i c a l  for population and r i c e p r o d u c t i o n  data  Csee Tables 2 and 3), i t i s found t h a t the average r i c e p r o d u c t i o n per capita o f West Pasaman i s about 127.9 the average r i c e 140  I f the c a l c u l a t i o n  aggregated 103.7  i s based on the kecamatan l e v e l  f i g u r e ) , the r i c e p r o d u c t i o n  kg and  134.2  below  ( D i r e k t o r a t Tata Guna Tanah,  kg f o r Kecamatan Pasaman., 103.4  187.7  This figure i s f a r  f i g u r e used by the D i r e c t o r a t e o f Land  kg o f r i c e per c a p i t a per y e a r  p. 12).  and  consumption  kg.  Use,  1976  (non-  f i g u r e s per c a p i t a are as f o l l o w s :  kg f o r Kecamatan Lembah  kg f o r Kecamatan Talamau and  Kecamatan  Melintang Sungai.  Beremas r e s p e c t i v e l y .  I t i s t r u e t h a t the people  o f West Pasaman grow o t h e r  foods, such as maize, cassava and  sweet p o t a t o e s , however, i t i s not  used as a main d i e t i n the study area and income.  I t i s f o r t h a t reason  excluded  from t h i s  agricultural  i s s o l d as a source o f cash  t h a t those three  food crops have been  calculation.  I t i s q u i t e c l e a r t h a t , even assuming t h a t t h e r e i s no r i c e flow out o f West Pasaman, the b a s i c food needs o f the people Pasaman have not y e t been met. areas  I f t h e r e are no i.additional  f o r r i c e p r o d u c t i o n , t h i s shortage w i l l  i n the y e a r s  to come.  I f the l o c a l  i n West  cultivated  a u t o m a t i c a l l y become l a r g e r  government does not want to be  with a more s e r i o u s problem about t h i s f o r food p r o d u c t i o n s h o u l d be  production  reserved.  food s h o r t a g e , the s u i t a b l e  faced land  65  TABLE.3:  POPULATION OF WEST PASAMAN BY NAGARI,  1979  TOTAL POPULATION Kecamatan Talamau  42,593  1. 2. 3. 4. 5.  6,571 7,133 7,976 11,297 9,616  Kenagarian Tal u - " Sinurut - " Kajai - " Cubadak - " Simpang Tonang  Kecamatan Pasaman  66,960  1. 2. 3. 4. 5. 6. 7. 8.  9,117 8,695 5,500 5,232 7,112 3,263 19,487 8,554  Kenagarian - " - " - " - " - " - " 11  Aur Kuning Lingkung Aur A i r Gadang Kapar Sasak Katiagan Kinali Koto Baru  Kecamatan Lembah M e l i n t a n g  45,271  1. 2. 3. 4.  19,100 13,930 8,625 • 3,616  Kenagarian - " - " - " -  Ujung Gading Sungai Aur Rabi Jonggor Muara Kiawai  Kecamatan Sungai 1. 2. 3. 4.  Beremas  29,639  Kenagarian A i r Bangis - " Parit - " Batahan - " Desa Baru  7,540 9,325 8,933 3,841  TOTAL (WEST PASAMAN)  urce:  Pasaman Dalam Angka, 1979  184,463  (pp. 152-155)  66  TABLE 4:  AREA HARVESTED, YIELD RATE AND TOTAL  PRODUCTION IN RICE PADDIES IN WEST PASAMAN (1979)  Area  Harvested  Y i e l d Rate  Total  Production  Kecamatan wetl and  upland  (ha)  wetl and  upland  (ton/ha)  wetland  upland  (ton) 1)  Talamau  4,137  272  3.40  1 .85  14,031  502  Pasaman  3,602  152  3.44  1.37  12,408  208  Lembah Mel i n t a n g  3,211  632  2.32  1.66  7,458  1,052  Sungai Beremas  2,130  1 ,796  2.65  0.89  5,638  1 ,593  2,852  3.02  1.18  39,535  TOTAL  1)  13,080  dry unhusked  Source:  rice  C a l c u l a t e d from "Pasaman Dal am Angka, 1979" (p. 205)  3,355  67  4.  Crucial  Projects  As s t a t e d p r e v i o u s l y , team proposed f i v e c r u c i a l development o b j e c t i v e s crucial  f o r a ten y e a r p e r i o d  (1975-1985) the WPDP  p r o j e c t s as a means f o r a c h i e v i n g  f o r West Pasaman.  The economic goals  the o f these  projects are:  1.  To i n c r e a s e  regional  income.  2.  To i n c r e a s e  3.  To improve the balance o f payments.  4.  To improve f a m i l y  income.  5.  To reduce r e g i o n a l  income  employment.  disparities.  (WPDP, 1975b p.4)  Since t h i s  study i s p r i m a r i l y r e l a t e d to the second c r u c i a l  project,  i . e . an o i l palm s m a l l h o l d e r  p r o j e c t , the l a s t three  crucial  will  A new main road p r o j e c t  (Simpang Empat -  hot be d i s c u s s e d  Manggopoh) w i l l precondition  4.1  b r i e f l y be d i s c u s s e d  because i t i s l i k e l y  to be a  f o r the o i l palm u n d e r t a k i n g .  The Main Road  This  here.  projects  Project  main road p r o j e c t c o n s i s t s o f two s e c t i o n s :  Section  A,  68  Simpang Em-pat - Manggopoh, 72 km and S e c t i o n B, Manggopoh - Lubuk 69 km.  The former  Alung,  i s a completely new c o n s t r u c t i o n and the l a t t e r i s  an improvement i n o r d e r t o achieve the same s t a n d a r d as the p r e c e d i n g section  (.see .Map  1).  The WPDP team concluded  t h a t the l a c k o f an  e f f i c i e n t t r a n s p o r t network i s the main cause o f West Pasaman's backwardness.  The l a c k o f an e f f i c i e n t t r a n s p o r t network i s a t t r i b u t e d t o the  very poor c o n d i t i o n o f the road and i t s alignment,  e s p e c i a l l y from T a l u  to P a n t i , where i t meets the t r a n s Sumatra highway.  A c c o r d i n g t o the  WPDP team, i t seems the improvement o f the T a l u - Panti s e c t i o n difficult  due to l a n d s l i d e and curve problems.  i s very  The u n d e r l y i n g i d e a o f  p r o p o s i n g a new road from Simpang Empat to Maggopoh was based on t h i s technical  problem.  Without a r g u i n g whether i t i s s u f f i c i e n t  e s t a b l i s h m e n t o f a new road, undoubtedly g r e a t e r i n f l u e n c e on the p r o p o s a l .  the o i l palm p r o j e c t had a  For example, i f the a g r i c u l t u r a l  products o f West Pasaman were d e s t i n e d f o r the people its  f o r the  i n West Sumatra and  s u r r o u n d i n g p r o v i n c e s , t h e road alignment would p r o b a b l y be d i f f e r e n t  (see Map 3 ) .  In o t h e r words, t e c h n i c a l  viewed as the main o b s t a c l e .  problems would probably n o t be  T h e r e f o r e t h e road and o i l palm p r o j e c t s a r e  m u t u a l l y s u p p o r t i v e ; without an o i l palm p r o j e c t , t h e r e would be no new road proposal desirable). oil  (.probably Or, without  the T a l u - Panti s e c t i o n improvement would be more the e s t a b l i s h m e n t o f a new road t h e r e would be no  palm p r o j e c t as s t a t e d i n WPDP's O p e r a t i o n a l  Programmes:  The s t a r t i n g p o i n t o f the whole p r o j e c t depends l a r g e l y on the d e c i s i o n t o b u i l d the road c o n n e c t i o n from Manggopoh to Simpang Empat. As soon as a d e f i n i t e , p o s i t i v e d e c i s i o n i s taken t o go ahead with t h i s road, t h e Nucleus E s t a t e w i l l begin with c l e a r i n g the l a n d , w h i l e the f a c t o r y w i l l be b u i l t i n y e a r 2 and 3 i n o r d e r t o be ready f o r the f i r s t h a r v e s t i n y e a r 4. (WPDP, 1975a p. 1/12).  RENCANA PEMBANGUNAN PASAMAN BARAT WEST PASAMAN DEVELOPMENT PLANNING  CD  Legend isufcota luitxjttatift  Capital of Kabupaia*.  Q ttiukflU kacamalan  fi)  Capital ot Kocamatan  •  Ibukota k*n*u*n»n  NagaM hoadquanar  0  Tampal Lamnya  Othtv ptaca  .  Bala* propmaf  Pfowtc*/bonlaf  —  B«<U k»Oup4t«XI K«bup«l*«l tKMQW  _ _ _ _  Baiai kacamatan  Kacamalan ewdM  Bataa fctnoQanan Nagan OorOW  Scale 1: 500000  T a l u . P n*<* 3  HAP 3  StcU  70  Another concern standard. fication is  with  r e s p e c t t o t h i s road p r o j e c t i s the road  I t i s proposed to be c l a s s  l i e o f Bina Marga's road  CDirectorate General o f Highway C o n s t r u c t i o n ) .  classi-  As t h i s  standard  q u i t e h i g h , i t means t h a t the c o s t per k i l o m e t e r i s a l s o h i g h , and the  WPDP team was t h e r e f o r e f o r c e d to e n l a r g e  the s i z e o f the o i l palm p r o j e c t  i n t o the p r i v a t e , c l a n and communal l a n d s , an a d d i t i o n a l 11,000 ha, i n order to j u s t i f y  the road p r o j e c t .  T h i s was done without  g a t i o n of the p h y s i c a l c h a r a c t e r i s t i c s and the s o c i a l  further i n v e s t i -  environment o f the  extended a r e a .  As s t a t e d e a r l i e r , the consent  o f the t r a d i t i o n a l  nagari f u n c t i o n -  a r i e s Ckerapatan nagari) i s a b s o l u t e l y necessary f o r the implementation of the p r o j e c t to be c a r r i e d out i n t h e i r a r e a . palm p r o j e c t , p a r t i c u l a r l y  When  designing the o i l  the extended area on non-government l a n d ,  there was no c o n t a c t with e i t h e r the W a l i n a g a r i s , as formal Kerapatan N a g a r i , as informal l e a d e r s .  l e a d e r s , or  I t seems the team n e g l e c t e d  this,  though i t s a y s ,  When the p r o j e c t i s extended onto v i l l a g e o r c l a n l a n d agreements with the formal and i n f o r m a l l e a d e r s must be reached. An a b s o l u t e p r e c o n d i t i o n i s t h a t the c o n t r a c t s between farmers on t h i s l a n d and the PM are c o u n t e r s i g n e d by the W a l i n a g a r i . His s i g n a t u r e should then be regarded as a guarantee o f l o n g term l a n d t e n u r e . CWPDP, 1975a p. 1/13)  In o r d e r t o put t h i s problem i n t o t h e c o n t e x t of t h i s study, the proposed o i l palm p r o j e c t w i l l  first  be summarized as f o l l o w s .  71  4.2  THE OIL PALM PROJECT  The focus  WPDP team viewed the o i l palm s m a l l h o l d e r p r o j e c t as the c e n t r a l  f o r West Pasaman's economic development.  this project are:  The major o b j e c t i v e s o f  (1) t o i n t r o d u c e s m a l l h o l d e r o i l palm p r o d u c t i o n t o  West Pasaman; (2) t o i n c r e a s e f a m i l y income, (3) t o c r e a t e employment o p p o r t u n i t i e s and (4) t o earn  The The  f o r e i g n echange.  p r o j e c t area i s l o c a t e d i n the Kecamatan  gross area necessary  ( s u b d i s t r i c t ) Pasaman.  f o r the p r o j e c t amounts to 24,000 ha, o f which  20,000 ha i s to be devoted t o a s m a l l h o l d e r system with  the remaining  4,000 ha t o be used by the Nucleus E s t a t e .  The the  Nucleus E s t a t e i s t o be e s t a b l i s h e d on government l a n d ,  former Ophir  specifies  E s t a t e e n t r u s t e d t o the m i l i t a r y .  t h a t "the Nucleus E s t a t e w i l l  The WPDP proposal  be run by SIPEF, a commercial  p l a n t a t i o n company a l r e a d y o p e r a t i n g i n North Sumatra" (WPDP, 1975b p. 1/8).  One o f the b a s i c f u n c t i o n s o f the Nucleus E s t a t e i s to p r o v i d e  the s u r r o u n d i n g include:  s m a l l h o l d e r s with  a variety o f services.  These w i l l  i n f o r m a t i o n , a d v i c e and recommendations about o i l palm produc-  t i o n , techniques,  the p r o v i s i o n o f p l a n t i n g m a t e r i a l , the p r o c e s s i n g  o f t h e i r o i l palm f r u i t p r o d u c t i o n by a p r o c e s s i n g u n i t t o be b u i l t and  12)  Most o f the i n f o r m a t i o n presented i n t h i s s e c t i o n i s taken from the " O p e r a t i o n a l Program f o r West Pasaman/Sumatra", a volume produced by the WPDP team i n 1975. A d e t a i l e d f e a s i b i l i t y study o f the o i l palm p r o j e c t was presented i n t h a t volume.  72  managed by the Nucleus E s t a t e , and the e x t e r n a l marketing and e x p o r t of  the  finished  The  product.  WPDP proposal  a l l o t s each s m a l l h o l d e r 5 ha, 4 ha o f which i s to  be devoted t o o i l palm c u l t i v a t i o n .  The remaining  hectare  by the s m a l l h o l d e r t o meet h i s f a m i l y ' s food needs.  i s to be used  In the i n i t i a l  year  (year 0 ) , the farmer i s to be giyen c r e d i t s u b s i d i e s t o c a r r y him through the  first  e i g h t months.  During  the non p r o d u c t i v e  four year  phase o f the o i l palm, the s m a l l h o l d e r i s to make h i s l i v i n g from the p r o d u c t i o n o f food c r o p s .  the o i l palm f r u i t  instructions  The  of  mechanical,  f o r the Nucleus E s t a t e a c c o r d i n g to i t s  through the P r o j e c t Management.  WPDP proposal  does not p r o v i d e  for a direct  the Nucleus E s t a t e and the S m a l l h o l d e r s . for  primarily  As f a r as o i l palm p r o d u c t i o n i s  concerned, the s m a l l h o l d e r ' s r o l e appears t o be e s s e n t i a l l y producing  immature  r e l a t i o n s h i p between  I n s t e a d , the WPDP plan  a P r o j e c t Management (PM) body to f a c i l i t a t e the  day-to-day  provides activities  the s m a l l h o l d e r area and to c o - o r d i n a t e arrangements between the  Smallholders  and the Nucleus E s t a t e .  whether the PM's personnel  The proposal  does n o t s p e c i f y  would be p u b l i c o f f i c i a l s o r p r o v i n c i a l  government r e p r e s e n t a t i v e s .  The main t a s k o f the PM i s t o o r g a n i z e , c o - o r d i n a t e , and  implement a l l S m a l l h o l d e r  activities.  (.1) the c o - o r d i n a t i o n and c o n t r o l  supervise,  This function includes:  o f Smal 1 hoi der o p e r a t i o n s ;  (.2) the  73  p r o v i s i o n o f p l a n t i n g m a t e r i a l and seeds f o r i n t e r c r o p s ; (3) the marketing o f the o i l palm f r u i t , (4) the p r o v i s i o n o f c r e d i t transportation unit);  i n c l u d i n g weight and q u a l i t y c o n t r o l ;  f a c i l i t i e s ; (5) the p r o v i s i o n o f f r u i t  from the s m a l l h o l d e r s '  p l o t s to the f a c t o r y  (6) the c o n s t r u c t i o n o f farm roads  (7) the development o f e x t e n s i o n there  i s the need f o r (1)  ties;  (2) l a n d s u r v e y s ;  The  ( w i t h i n the p r o j e c t a r e a ) and  s e r v i c e s and n u r s e r i e s .  l a n d n e g o t i a t i o n s with  In a d d i t i o n ,  the v i l l a g e a u t h o r i -  (3) l a n d c l e a r i n g and (4) p l a n t i n g .  P r o j e c t Management body i s to p r o v i d e ' t h e  between the S m a l l h o l d e r s  only  link  and the Nucleus E s t a t e and to r e p r e s e n t  the S m a l l h o l d e r  i n t e r e s t s i n d e a l i n g s with  all  and m a t e r i a l  information  (processing  the Nucleus E s t a t e .  Thus,  from the Nucleus E s t a t e i s d i s s e m i n a t e d  by the PM to the S m a l l h o l d e r s .  And, a l l o i l palm f r u i t  i s marketed and  t r a n s p o r t e d by the PM, under c o n t r a c t , as the o n l y buyer o f the farmer's production  and as the s o l e s u p p l i e r t o t h e Nucleus E s t a t e f a c t o r y .  PROJECT MANAGEMENT Organization Transport  Monetary Receipts >  NUCLEUS ESTATE  Oil Export  Processings Marketings  f  SMALLHOLDERS , (  Fruit Cul t i v a t i o n  FIGURE 2: ORGANIZATIONAL STRUCTURE OF THE OIL PALM PROJECT  74  Even b e f o r e the p r o j e c t  gets o f f the paper,  however, t h e r e are  some g l a r i n g l i m i t a t i o n s both i n tbe p r o p o s a l ' s f o r m u l a t i o n and i n the a c t u a l  The  project.  team seems to have f o r g o t t e n i t s i m p a r t i a l  with the r e s p o n s i b i l i t y and  r o l e as  planner,  f u n c t i o n to p r o y i d e the decision-makers  i n f o r m a t i o n on, and e v a l u a t i o n o f , the p r o j e c t ' s f e a s i b i l i t y bility. and  I n s t e a d , the team appears  to f u n c t i o n , based on  and  facts,  f o r m u l a t i o n s which are not p r e s e n t e d to be weighed as  with  desirafigures  alternatives,  but to be accepted as the s o l e d i r e c t i o n the programme i s to f o l l o w . Thus, i t s t a t e s t h a t SIPEF w i l l  run the Nucleus  Estate without  r e g a r d to  o t h e r p o s s i b l e o p e r a t o r s or o r g a n i z a t i o n a l a l t e r n a t i v e s .  The  proposal tends  expense o f s o c i a l feasibility to  study r e s t r i c t s -much o f i t s examination  an e x p l a n a t i o n o f c u l t i v a t i o n t e c h n i q u e s . f o r the way  restrictive agricultural initiative  a s p e c t s a t the  and economic f a c t o r s t h a t s h o u l d be c o n s i d e r e d .  seems to be expressed  and  to c o n c e n t r a t e on the t e c h n i c a l  will  o f the  be i n hands o f the PM and  Smallholders  For example, l i t t l e  the S m a l l h o l d e r s w i l l  and economic c o n t r o l  The  concern  deal w i t h  the  by which d e c i s i o n making the Nucleus  Estate.  As a procurement body between the S m a l l h o l d e r s and the Nucleus the PM w i l l  get a-commission o f 15% o f the farmers'  deduction o f 15%  f o r the Nucleus  E s t a t e , based on  T h i s i m p l i e s t h a t the S m a l l h o l d e r s w i l l And  gross y i e l d  after a  the w o r l d market  o n l y get 72.25% o f t h e i r  Estate  price.  gross  yield.  the economic a c t i v i t i e s o f the S m a l l h o l d e r s depend on the world,market  price.  In a d d i t i o n , the S m a l l h o l d e r i s a l s o a dependent o f the PM as well  75  as o f the Nucleus  Estate.  Moreover, the WPDP team d i d n o t mention the  reason why the PM s h o u l d get 15% o f the farmers' d e d u c t i o n o f 15% f o r the Nucleus PM,  gross y i e l d  ( a f t e r the  E s t a t e ) as i t s commission.  which d e a l s w i t h , o r takes care o f , both the Nucleus  Ideally, the  E s t a t e and the  S m a l l h o l d e r s , s h o u l d get a commission from the Nucleus E s t a t e .  A deduction o f 15% o f the farmers' gross y i e l d  f o r the Nucleus  Estate  1 3) is  r e s e r v e d t o cover the e x p o r t ta-xes o f 10% and CESS l e v y  per kg which i s to be borne by the Nucleus i s not c l e a r l y s t a t e d .  Estate.  The S m a l l h o l d e r s w i l l  sell  Again, t h i s their  fruit  as the o n l y buyer and the s o l e o i l palm f r u i t s u p p l i e r t o . t h e E s t a t e , but, they S m a l l h o l d e r s have to be charged T h i s apparent  o f Rp 2.6 deduction t o the PM Nucleus  f o r export taxes.  unfairness i s not e x p l a i n e d .  At the end o f the f e a s i b i l i t y  s t u d y , the WPDP team concludes  that:  By u s i n g a ~\2% i n t e r e s t r a t e and the p r i c e p e r kg o f US <£44 f.o.b. for  palm o i l , the o v e r a l l  (IRR o f 19.4%  p r o j e c t has an I n t e r n a l  and a B e n e f i t  Cost R a t i o (BCR)  Since the IRR i s above the Indonesian •BCR i s g r e a t e r than  The  13)  Rate o f Return  o f 2.35.  bank r a t e o f 12%,  and the  1, the p r o j e c t i s f e a s i b l e .  p r o j e c t e d farm incomes were e s t i m a t e d t o exceed  Rp 160.000 p e r  Cess l e v y i s a s p e c i a l c o n t r i b u t i o n p a i d by the grower. i s addressed f o r r e s e a r c h purposes.  T h i s fund  76  month, which i s roughly 16 times the average 1974 farm income i n West Pasaman.  However, even the most casual e v a l u a t i o n o f these r e s u l t s l e a d s to c e r t a i n c r i t i c i s m o f t h e i r economic a n a l y s i s .  The f i g u r e s f o r the IRR  and BCR, mentioned above, t o t a l l y depend on the assumptions made by the team.  I f the assumptions were changed, d i f f e r e n t  f o r the IRR and BCR.  The f i g u r e o f a p r o j e c t e d  g r e a t as the t r a d i t i o n a l compared  f i g u r e s would be o b t a i n e d  farm income, 16 times as  farm income, i s a l s o d e c e p t i v e as the team  farm incomes from farms o f q u i t e a d i f f e r e n t s i z e .  from a 5 ha farm would, o f c o u r s e , be h i g h e r than the income farm*^.  The income from a 1.18 ha  Moreover, the.team was n o t able to show what impact the o i l palm  p r o j e c t would have on the r e g i o n .  F o r example, the team concluded  that:  Given the l o c a l consumption and s a v i n g s p a t t e r n , s a v i n g s a r e o f t e n spent on j e w e l r y , an i n c r e a s e i n the gold t r a d e i s t o be expected. CWPDP, 1975b p. 1/48).  T h i s c o n c l u s i o n would imply t h a t s a v i n g s would n o t be a v a i l a b l e f o r development  f i n a n c i n g because they would be converted i n s t e a d to j e w e l r y .  Thus, there would be no a d d i t i o n a l project.  formation expected from the  T h i s would mean t h a t the o i l palm p r o j e c t would have no impact  on r e g i o n a l  14)  capital  growth.  1.18 ha i s the average farm s i z e i n the study area based on i n t e r v i e w s with farmers and w a l i n a g a r i conducted d u r i n g the summer o f 1981.  77  CHAPTER V  THE  1.  RESULTS OF THE  STUDY  Introduction  In Chapter  IV we  supporting in r i c e .  have seen t h a t West Pasaman i s s t i l l The  f a r from s e l f -  f i g u r e s on a kecamatan b a s i s show t h a t o n l y  Kecamatan Talamau i s able to meet i t s food needs i n terms o f r i c e t i o n per c a p i t a  0 8 7 . 7 kg).  O03.4 kg).  the Ophir o i l palm e s t a t e p r o j e c t as proposed  WPDP team to the n o r t h e r n p a r t o f Kecamatan Pasaman, i . e . Kapar, Aur present  (103.7  Kecamatan Pasaman i s the second lowest  a f t e r Kecamatan Lembah M e l i n g t a n g  By e x t e n d i n g  produc-  by  the  Kenagarian  Kuning, Lingkung Aur and A i r Gadang, i n which a p a r t o f the  r i c e p r o d u c t i o n comes from, the b a s i c food supply o f Kecamatan  Pasaman, as well as West Pasaman as a whole, would be p l a c e d i n an even more severe p o s i t i o n .  Almost one  thousand h e c t a r e s o f the land  proposed  f o r o i l palm i s c u l t i v a t e d w i t h paddy.  Whether the area under study s h o u l d be devoted or to o t h e r a g r i c u l t u r a l  to o i l palm c u l t i v a t i o n  food p r o d u c t i o n and t r e e crops which the  have been f a m i l i a r w i t h , i s the main concern  o f t h i s chapter.  As s t a t e d  e a r l i e r , three f a c t o r s , i . e . the p h y s i c a l c h a r a c t e r i s t i c s o f the the s o c i a l  environment and economic a s p e c t s were chosen as the  f o r t h a t purpose.  \  farmers  land,  criteria  kg)  78  2.,  Physical  The  Characteristics  discussion o f physical  characteristics  l a n d and water r e s o u r c e s , and addresses  in this section  covers  the p o s s i b l e use o f the non-government 15)  l a n d f o r food p r o d u c t i o n and o t h e r n o n - o i l  palm t r e e crops  boundary o f the l a n d i n q u e s t i o n can be seen on Map  2  .  The  (.approximately  11,000 h a ) . Andosols and accounts rocks p r e v a i l 23.7%  formed on young a n d e s i t i c t u f f are predominant i n the a r e a , f o r 64.8%  (6»934'.ha),  1.5%  are both well  by Humic-Glei. to moderately  About 2.6% Andosols  i s o c c u p i e d by Low  and  latosolic  ( S i n o t e c h , 1979)..  have a moderate to high c o n t e n t o f o r g a n i c matter c a p a c i t y and w a t e r - h o l d i n g c a p a c i t y , but l a t o s o l i c low i n n i t r o g e n c o n t e n t .  15)  soils  occupy Humic-Glei  i n the area  nitrogen f e r t i l i z e r  low  Andosols g e n e r a l l y  and are high i n exchange soils  tend to be  G e n e r a l l y , andosols and  s o i l s are s u i t a b l e f o r r i c e crop c u l t i v a t i o n . additional  p a r t and  igneous  d r a i n e d , s t r o n g l y a c i d i c i n r e a c t i o n , and  i n phosphorus f o r c u l t i v a t e d crops  permeable and  d e r i v e d from  over the r o l l i n g h i l l s o f the western  C2.530 ha) o f the a r e a .  and bout  Latosolic soils  However, f o r the  latosolic latter  i s necessary  S i n c e the f e a s i b i l i t y study f o r u s i n g the area f o r o i l palm p r o d u c t i o n had been conducted i n 1975, i t can be taken f o r granted t h a t i t i s p h y s i c a l l y s u i t a b l e f o r t h a t purpose.  79  The r e s u l t s o f S i n o t e c h ' s cation  criteria  for irrigation  (1979) s t u d y , based on l a n d purposes,  shows t h a t over  classifi-  four-  f i f t h s o f the l a n d i n the area may be c o n s i d e r e d as a r a b l e - i r r i g a b l e . Thus the area has a moderately rice  high p o t e n t i a l  f o r food, and i n p a r t i c u l a r ,  production.  Land use o f the study area i s dominated by brushwood and f o l l o w e d by a l a n g - a l a n g  (imperata  c y l i n d r i c a ) , upland  shifting  shrubbery cultiva-  t i o n and t r e e c r o p s , and paddy l a n d .  TABLE 5:  LAND USE OF THE STUDY AREA  Land-use type  Acreage (ha)  Percentage  988.75  9.25  Upland f o r s h i f t i n g - f a r m i n g and t r e e crops  2,564.94  23.99  Brushwood and Shrubbery  3,553.94  33.25  Alang-alang  2,841.25  26.58  Ponded/swampy lands  376.26  3.52  Settlements  265.00  3.41  10,690.14  100.00  Paddy l a n d  TOTAL  Source:  Sinotech  (1979) p. I I I . 2  Of the l a n d used f o r paddy c u l t i v a t i o n , o n l y about 545 ha are well  80  d r a i n e d and the r e s t season.  (443.75 ha) i s mostly water-logged  Hence i t i s o n l y used  f o r one  I t i s e s t i m a t e d t h a t more than one cultivated than 400  crop o f r i c e i n the dry  thousand  h e c t a r e s are used f o r secondary crops method.  season.  fruit  t r e e s , and  ( p a l a w i j a ) by the  of shifting  cultivation.  i n West Pasaman can p r o b a b l y be used  o r d e r to i n c r e a s e food p r o d u c t i o n .  One  for i r r i g a t i o n in  o f them i s Batang Tongar r i v e r  which flows a l o n g the e a s t e r n border o f the study a r e a (see Map  In Tongar,  1954,  293  the one  families  village  rice  cultivation  no r e a l i z a t i o n  (sawah) through  o f t h i s promise.  in  Kenagarian A i r Gadang.  c o n s t r u c t i o n o f the Batang Tongar i r r i g a t i o n p r o j e c t . there i s s t i l l  4).  o f Suriname r e p a t r i a t e s were r e s e t t l e d  i n the study area w i t h i n  They were promised wetland  less  A c o n s i d e r a b l e amount o f a l a n g - a l a n g  lands i n the study a r e a i s the r e s u l t  Many r i v e r s  wet  h e c t a r e s o f upland are  w i t h coconut, rubber, c l o v e s , c o f f e e and  shifting cultivation  d u r i n g the  the  Unfortunately,  Because o f the  disappointment, most o f these people moved to o t h e r p l a c e s l i k e Padang, Pekanbaru, Medan and even to J a k a r t a and o n l y 60 f a m i l i e s the v i l l a g e .  The  l e a d e r o f the group  now  live in  has s t a t e d t h a t none o f them would  have l e f t Suriname had they known t h a t Batang Tongar would not proceed (Interview, July  1981).  To be s e l f - s u f f i c i e n t i n food p r o d u c t i o n as one o f the o b j e c t i v e s of Repelita Sinotech's  I I I , the development o f i r r i g a t i o n i s e s s e n t i a l . (1979) study r e v e a l s t h a t a t o t a l  The  o f 4,079 ha o f brush  and  RENCANA PEMBANGUNAN PASAMAN BARAT WEST PASAMAN DEVELOPMENT PLANNING  'No, Legend. ®  CbufcoU kafiupatan  Capita* ol Kabupaian  Q  ibufcota kacamatan  Capital of Kacamatan  D  Tampat Lainnya  • kanag^nan  Bataa propinai  MaQarl haadquarta* O t h * ptac*  Prownctal borda*  Balai kaCupalan KaOvpatan Oontat __ _  B a i u kacamatan  Kacamatan boroar  Baui kanaganan  Nagan boftfer  Scale 1 : 500 000  givers MAP Zi  -  — —  82  grass lands i n the study area can  be r e c l a i m e d i n t o paddy lands  6,664 ha o r about 62% o f the study area can be p l a n t e d with a y e a r , i f the Batang Tongar p r o j e c t was  By  growing r i c e  under Economic A s p e c t s ) .  good l i v i n g on one  (see Table 61,  families of local  or national transmigrants. .  the i d e n t i f i e d  acreage  farm  f a c i l i t a t e 3,164  families  farm  possibility  i n order to more f u l l y u t i l i z e the  I t suggested  that further investigation  bank o f Batang Pasaman  (see Map  4)  desirable.  A f t e r the completion  o f the Batang Tongar p r o j e c t , the supply o f water  no l o n g e r be a c o n s t r a i n t to r i c e  ment, r i c e and  3,500 e x i s t i n g  the p r o j e c t can  o f the area to the west on the l e f t  will  family should  (see c a l c u l a t i o n  S i n o t e c h study a l s o p o i n t e d out t h a t there i s some  water r e s o u r c e o f Batang Tongar.  was  t h a t one  hectare  In a d d i t i o n to the  i n the study area  o f extending  twice  T h e r e f o r e , the Batang Tongar p r o j e c t can  accommodate 6,664 f a m i l i e s .  The  rice  built.  twice a y e a r , i t i s e s t i m a t e d  be a b l e to make a r e a s o n a b l y  and  v a r i e t y and  cultural  production.  Through l a n d  improvement, b e t t e r f e r t i l i z a t i o n , pest  d i s e a s e c o n t r o l , and water management i t i s expected  b e i n g s t u d i e d , the output o f paddy r i c e w i l l ( S i n o t e c h , 1979  develop-  t h a t f o r the l a n d  be 47,034 tons a year  p. x v i ) .  Thus, from the view p o i n t o f optimum use o f the l a n d and water r e s o u r c e s , and  i n o r d e r to i n c r e a s e r i c e p r o d u c t i o n to meet the  food needs  83  TABLE 6:  KENAGARIAN, DESA AND  POPULATION OF 16 DESAS  AFFECTED BY THE PROPOSED BATANG TONGAR PROJECT  Kenagarian/Desa  I.  II.  AUR  4,788 1 ,965 2,127 696  LINGKUNG  6,929  AIR 1. 2. 3. 4. 5.  IV.  KUNING  AUR  Koto Dal am Koto S i b i l u a n Sibadagung Koto T i n g g i Batang Bi u Bandarjo Rimbo Candung  1,304 962 1,134 845 998 1,054 632  GADANG  5,141  Batang L i n g k i n Tongar Batang Umpai Durian Hutan P a s i r Bintungan  1,352 583 947 657 1 ,602  KAPAR 1. Kapar Utara  661  17,519  TOTAL  Source:  16)  0 980)  1. Padang Tujuh 2. Sukamenanti 3. Lembah Binuang  1. 2. 3. 4. 5. 6. 7. III.  Population  ;  1 6 )  09791  1)  Sinotech  2)  Sensus Penduduk Kabupaten  Pasaman  0980)  I t i s assumed t h a t the average f a m i l y s i z e i n the study area i s 5.  84  o f the people i n the study a r e a , as well  as West Pasaman, t h e r e are  s t r o n g arguments i n favour o f t h e implementation project.  o f the Batang  Tongar  85  3.  Socio-Cultural  Environment  By l o o k i n g a t the major o b j e c t i v e s o f the o i l palm p r o j e c t  (under  IV 4.2), i t i s apparent t h a t the WPDP team attempted to modernize the traditional  economy o f West Pasaman by l i n k i n g i t t o i n t e r n a t i o n a l  markets through o i l palm p r o d u c t i o n . of conventional  development t h e o r y ,  T h i s i s i n l i n e w i t h the p r i n c i p l e t h a t i s , t o give the s u b s i s t e n c e  s e c t o r a b i g push i n t o the modern world and i n t o the i n t e r n a t i o n a l market economy (Lappe, e t . a l , 1977).  In a n a l y z i n g the  the e x i s t i n g c o n d i t i o n s o f West Pasaman i n o r d e r  potential bottlenecks  to find  f o r f u r t h e r development, the WPDP team concen-  t r a t e d i t s e f f o r t s on the i d e n t i f i c a t i o n o f the l a g g i n g s e c t o r and concluded t h a t "the l a c k o f an e f f i c i e n t  road network turned  the main cause o f many o f West Pasaman's shortcomings" As  o u t to.be -  (WPDP, 1975a p. 2 4 ) .  a r e s u l t , they s t r o n g l y recommended the c o n s t r u c t i o n o f a new road  Simpang Empat t o Manggopoh.  In c h o o s i n g the o t h e r  crucial  Page 6 ) , the team d i d n o t take i n t o account the s o c i a l i n h i b i t the implementation o f i t s p r o j e c t  from  p r o j e c t s (see  a s p e c t s which might  proposal.  There are many c i r c u m s t a n c e s where s o c i o - c u l t u r a l c o n d i t i o n s can inhibit  development e f f o r t s .  change and are c o n s e r v a t i v e For example, F o s t e r a village lacked  Sojneti.mes c e r t a i n peasant groups  i n t h e i r a t t i t u d e s towards economic development.  (1967). found s t r o n g evidence t h a t i n T z i n t s u n t z a n s  i n northern  1  Mexico, peasants espoused a c o n s e r v a t i s m and  i n t e r e s t i n e x p l o i t i n g new s o c i a l  According  resist  and economic o p p o r t u n i t i e s .  to F o s t e r , t h e - r e a s o n they do not take advantage o f a v a i l a b l e  86  o p p o r t u n i t i e s i s t h a t they b e l i e v e d i n d i v i d u a l at the c o s t o f o t h e r s .  The  improvement can o n l y be  use o f a v a i l a b l e o p p o r t u n i t i e s a c c o r d i n g to  F o s t e r ' s i n t e r p r e t a t i o n , would be p e r c e i v e d as l e a d i n g to socio-economic  While  i n e q u a l i t i e s and t o i n t e r n a l  the T z i n t z u n t z a n ' s peasants  increasing  conflict.  do not take advantage o f new  social  and economic o p p o r t u n i t i e s because they p e r c e i v e t h a t one's gain i s always a t the expense o f someone e l s e , the Indonesian Javanese  peasant  farms i n g e n e r a l , and  farmers, i n p a r t i c u l a r , tend to d i s m i s s these o p p o r t u n i -  t i e s because "they p l a c e e-xtremely high d i s c o u n t s to r i s k and u n c e r t a i n t y , particularly  the l a t t e r "  subsistence-minded  (Penny, 1 966).  The  and o t h e r kinds o f investment i f they d i d not adopt  t e c h n o l o g y , from  growing  o f new  crops,  are much lower than they would i n f a c t  such i n n o v a t i o n s .  T h i s type o f peasant  a narrow r i s k base, values s e c u r i t y h i g h l y .  get  farmer, with  Gains and l o s s e s are not  T h i s i s n e c e s s a r i l y so because the p o s s i b i l i t y o f a .  small  l o s s — w h i c h means someone must go h u n g r y — i s  equal  p o s s i b i l i t y o f a larger gain.  The  peasants.^ as  farmers, a c c o r d i n g to Penny, b e l i e v e t h a t the r e t u r n s  they would get from the use o f new  e q u a l l y weighted.  Indonesian  more important than  the  f i r s t o b j e c t i v e o f the o i l palm p r o j e c t i s to i n t r o d u c e an  i n n o v a t i v e s m a l l h o l d e r o i l palju p r o d u c t i o n i n West Pasaman.  A g a i n , the  team o v e r l o o k e d the f a c t t h a t i n n o v a t i o n i s a process w M c h takes time. . Many a g r i c u l t u r a l  i n n o v a t i o n s have s o c i a l , econo-mic and c u l t u r a l  consequences  t h a t make them l e s s d e s i r a b l e than the p r a c t i c e t h a t they s u b s t i t u t e . farmers'  d e c i s i o n s are u s u a l l y made i n terms o f what has  previous generations.  Economic n e c e s s i t y and  social  been done i n  p r e s s u r e s can  be  The  87  viewed  as b a s i c c o n s i d e r a t i o n s i n the farmers' d e c i s i o n to adopt  an  innovation.  Will project? colonial  the farmers o f West Pasaman a u t o m a t i c a l l y a c c e p t t h i s o i l palm I t i s t r u e t h a t o i l palm was period.  grown i n West Pasaman d u r i n g the  However, none o f the farmers  involved in i t s c u l t i v a t i o n . t h a t these farmers w i l l  i n West Pasaman were  T h e r e f o r e , i t i s not r e a s o n a b l e to assume  e a s i l y accept o i l palm as a replacement o f t h e i r  e x i s t i n g crops which have been i n h e r i t e d by t h e i r a n c e s t o r s .  On  the  c o n t r a r y , as has been shown by the r e s u l t s o f f i e l d o b s e r v a t i o n , t h e r e i s no i n d i c a t i o n t h a t the farmers i n the study area w i l l to  a d j u s t themselves  this innovation.  The  Indonesian  Penny (.1966 p. 27).  farmer's p e r c e p t i o n o f i n n o v a t i o n was  observed  He p o i n t e d out t h a t although income c o u l d be i n c r e a s e d  merely by a change i n the p a t t e r n o f r e s o u r c e use, o r by a small of  l a b o r from crop p r o d u c t i o n to r e p a i r work on the i r r i g a t i o n  or  by spending a l i t t l e money on  these o p p o r t u n i t i e s . do not attempt  fertilizer,  system,  the farmers tend to i g n o r e  Penny f u r t h e r says t h a t i n most o f I n d o n e s i a , farmers  For example, the growing o f papaya and o t h e r  the Depok area f o r the J a k a r t a market i s much more p r o f i t a b l e  growing  transfer  t o maximize t h e i r incomes, nor do they respond s t r o n g l y to  economic i n c e n t i v e s . in  by  fruit  than  food crops f o r s a l e , but o n l y a few farmers take advantage  of this  opportuni t y .  For  traditional  s o c i e t y , the process o f i n n o v a t i o n can, f o r a c e r t a i n  p e r i o d o f t i m e , be prevented by i t s d e e p l y - r o o t e d s o c i a l  value  system.  88  For example, the  Javanese v i l l a g e economy, a wet  to Geertz (.1963), p r o v i d e s  a place  for surplus  r i c e economy,  according  l a b o r though i t i s known  t h a t the p r o d u c t i v i t y o f the a d d i t i o n a l workers i s l e s s than the they w i l l  make on  the t o t a l  product.  Geertz c a l l s  d e c i s i o n the e t h i c o f "shared p o v e r t y " . the  use  o f the s i c k l e  knife  (.ani-ani).  social  pressure  this  claims  uneconomical  Some Javanese farmers know t h a t  f o r h a r v e s t i n g i s more p r o f i t a b l e than the c u t t i n g  However, they do not a g a i n s t t h i s new  More r e c e n t l y , however, the  the  s i c k l e because o f  the.,  system, as i t reduces work o p p o r t u n i t i e s .  change i n the  from "bawon" or open h a r v e s t t r a d i t i o n a l l y work with  use  system  traditional  harvest  arrangement  Cthe f i e l d i s open to a l l ,  who  a n i - a n i ) , to "tebasan" or c o n t r a c t h a r v e s t i n g  .  Cunder t h i s system, the more e f f i c i e n t s i c k l e i s used r a t h e r than the a n i ) has  gained  designed by harvesters  i n popularity.  farmers and  T h i s process  l a n d l o r d s as  crowding t h e i r f i e l d s  As a r e s u l t , the  social  and  o f change i s  purposely  " t a c t i c s to l i m i t the number o f  i n search  institutional  o f a wage" (White, 1979 arrangement at the  that provided  mechanisms f o r s h a r i n g o f employment and  are b e g i n n i n g  to break down, f o r example, the  is  ani-  village  earning  share o f the  p.  99). level  opportunities  harvest  laborers  reduced.  There i s an  assumption t h a t t e c h n o l o g i c a l  changes i n the economy and expectation  social  innovation  organization.  o f the WPDP team t h a t the s m a l l h o l d e r  a u t o m a t i c a l l y l e a d to a b e t t e r economy and  I t was  society.  production  and  people s u b s t a n t i a l l y reduced the l e d to an expansion o f ceremonial  l e a d to  probably  the  o i l palm i n n o v a t i o n  would  For example, S a l i s b u r y  C1962) observed t h a t d i s p l a c i n g o f stone axes by s t e e l Guinea Highland  will  ones among a  New  time spent on  subsistence  and  activities.  political  89  I t d i d not, however, produce much change i n the economy and  social  organization.  In order  to o b t a i n the  people's p e r c e p t i o n o f the s m a l l h o l d e r o i l  palm i n n o v a t i o n i n West Pasaman, i n t e r v i e w s were conducted d u r i n g summer o f 1981. o p i n i o n as  S i x t y farmers were i n t e r v i e w e d  Csee Appendix 1 ) .  Of these  were t a b u l a t e d because Question person, Question  No.  and  5 CQ05) was  Question  No.  t h a t the r e - e s t a b l i s h m e n t have no o p i n i o n  No.  consisting of  fourteen  fourteen questions, only  2 _CQQ2) ;was  not  o n l y 1.7%  eleven  o n l y answered by  4 CQQ4) r e s u l t e d i n a t o t a l l y n e g a t i v e  In response to Q01,  98.3%  their  to what p r o j e c t or program would be s o c i a l l y d e s i r a b l e .  Each farmer answered the same q u e s t i o n n a i r e questions  to determine  the  one  response  valid.  o f the  o f the Ophir  Csee Table 7 ) .  farmers were o f the  E s t a t e was  a good i d e a  opinion and  90  TABLE 7  :  FARMERS' OPINION OF THE OPHIR OIL PALM PROJECT  Farmers'  Good Idea  Kenagarian  Opinion  Don ' t Know  Bad  idea  %  No.  %  No.  %  No.  1.  A i r Gadang  1  5.7  14  93.3  0  0  2.  Lingkung Aur  0  0  15  100.0  0  0  3.  Aur Kunung  0  0  15  100.0  0  0  Kapar  0  0  15  100.0  0  0  TOTAL/AVERAGE  1  1 .7  59  98.3  0  0  4.  Almost a l l o f the respondents The  3.3% who  (96.7%) had seen o i l palm t r e e s .  had never seen them were from A i r Gadang (see Table 8 ) .  91  TABLE 8:  WHO HAVE SEEN OIL PALM TREES  FARMERS  Number and Percentage o f Respondent  Kenagarian  Have Seen  No.  Have Never Seen  %  %  No.  1.  Ai r Gadang  13  86.7  2  2.  Lingkung  15  100.0  0  0  3.  Aur  15  100.0  0  0  4.  Kapur  15  100.0  0  0  58  96.7  2  3.3  Aur  Kuning  TOTAL  In response to Question No.  6 aTT o f the respondents  of. the o p i n i o n t h a t they d i d not want to grow o i l palms on farms  f o r commercial  purposes  (see Table 9 ) .  13.2  (1001) were their  92 TABLE 9:  FARMERS WHO WANT TO GROW OIL PALM ON THEIR FARMS  D o n ' t Want t o Grow  Want to Grow  i\enagari an  No.  %  No.  ?0  1.  A i r Gadang  0  0  15  100 0  2.  Lingkung Aur  0  0  15  100 0  3.  Aur Kuning  0  0  15  100 0  4.  Kapar  0  0  15  100 0  0  0  60  100 0  TOTAL  I t was found t h a t none o f the respondents would l i k e to j o i n O p h i r O i l Palm P r o j e c t (see T a b l e 10)-. w a n t i n g to j o i n i t  T h e i r main reasons f o r  are shown i n Table 1.1.  the  not  A l l respondents s t a t e d t h a t  t h e y f i r s t needed e v i d e n c e o f some economic advantage and t h a t they d o n ' t want to be d i c t a t e d to by the Nucleus E s t a t e .  They f e l t t h a t  was s a f e r to grow r i c e and o t h e r crops t h a t they are f a m i l i a r w i t h than o i l  palm.  S u r p r i s i n g l y , 70% o f the respondents based t h e i r  on the p l e a s u r e time f a c t o r s . cultivation  They are o f the o p i n i o n t h a t o i l  i s too time consuming.  to l e a v e t h e i r  villages.  More than h a l f  (51.6%).  decision palm  (61.7%) do not want  (outmigrants),  would  f e e l ashamed to migrate such a s h o r t d i s t a n c e from t h e i r v i l l a g e  important  rather  The farmers i n the s t u d y area (Minangkabau  p e o p l e ) , who have been w e l l known as " p e r a n t a u "  the O p h i r s i t e .  it  Unfamiliarity with o i l  palm c u l t i v a t i o n  reason f o r t h e i r not w a n t i n g to j o i n the o i l  i s the  to least  palm p r o j e c t  93  TABLE 10::  FARMERS' RESPONSE TO THE  Like  OPHIR OIL  PALM PROJECT  Don't L i k e  to J o i n  to J o i n  Kenagarian  %  No.  No.  1.  A i r Gadang  0  0  15  100.0  2.  Lingkung  0  0  15  100.0  3.  Aur  0  0  15  100.0  4.  Kapar  0  0  15  100.0  60  100.0  Aur  Kuning  TOTAL/AVER.  The  respondents  i n t h e i r response t h e i r land extended project in  opposition  to o i l palm c u l t i v a t i o n was  to q u e s t i o n no. 9.'  confirmed  None o f them agreed to  devote  to o i l palm p r o d u c t i o n should the Ophir Palm P r o j e c t  to t h e i r areas  (see Table .12).  i n t e r e s t the farmers.  i n t h e i r areas  was  However, the f i r s t  f o r the c r e a t i o n  o f an i r r i g a t i o n  interested preference project  (see T a b l e 13).  I f the i r r i g a t i o n p r o j e c t was  built  they would c o n v e r t t h e i r upland to r i c e know" (see Table 14).. coconut t r e e s  plantation  More than twenty p e r c e n t were  the p o s s i b i l i t y o f a coconut p r o j e c t .  o f a l l the respondents  Nor d i d a rubber  be  The  are s t i l l  main reason  young.  96.7%  o f the respondents  growing w h i l e 3.3%  f o r the l a t t e r was  said  that  said "don't  their  3.  2.  1.  Aur Kuning  Lingkung Aur  Air Gadung zz.  o  46.7  33.3  100.0  cn o  - f i - j c n . c n  26.7  cr,  Kapur  cn  4.  TOTAL CO  a*  cn  cn  cn  cn  o  Not F a m i l i a r With O i l Palm Cultivation 3» 00  zz  o  Need Evidence  TO  m CO  100.0  100.0  100.0  100.0  100.0  m o  -o  o o TO  CTl  o  •  •  __l  cn  cn  cn  — J  cn  TO  o  100.0  100.0  100.0  100.0  100.0  Don't Want To Be D i c t a t e d To By The Nucleus E s t a t e  a  ZJZ  m 3=  - a  3="  TO  m TO  CO - a  TO  cn o  cn  cn  cn  cn  100.0  100.0  100.0  100.0  100.0  O  zz.  o  S a f e r To Grow Rice And Other Crops Which Have Been F a m i l i a r With  CD —I  O  ro  —  1  <o  60.0  o  co  zz.  o  Need Time For Pleasure  zz,  o  Don't Want Tn Mnvp \ \ 11 II l> I I v A Short Distance \J \J  53.3  66.7  46.7  80.0  cn  ro p,n o  73.3 ro  66.7  70.0 CO  o  \r  U  \J  lyj  95 TABLE  12: REACTION OF FARMERS TO DEVOTING  THEIR LAND TO OIL PALM CULTIVATION  Agree  No Idea  Disagree  Kenagarian No.  %  No.  %  No.  %  1.  Ai r Gadang  0  0  0  0  15  100.0  2.  Lingkung Aur  0  0  0  0  15  100.0  3.  Aur Kuning  0  0  0  0  15  100.0  4.  Kapur  0  0  0  0  15  100.0  0  0  0  0  60  100.0  TOTAL/AVER.  TABLE 13: FARMERS' PREFERENCE POTENTIAL PROJECTS  I r r i g.  TOWARDS  IN THEIR AREA  Rubber  Coconut  Coffee  Kenagarian No.  %  No.  %  No.  %  No.  %  1.  A i r Gadang  15  100.0  0  0.0  0  0.0  1  6.7  2.  Lingkung Aur  15  100.0  0  0.0  5  33.3  2  13.3  3.  Aur Kuning  15  100.0  1  6.7  2  13.3  2  13.3  4.  Kapar  15  100.0  0  0.0  6  40.0  0  0.0  60  100.0  1  1 .7  13  21.7  5  8.3  TOTAL/AVER.  96  TABLE 14: FARMERS' WILLINGNESS TO CONVERT THEIR LAND TO RICE GROWING  Wi 11 Convert  Don't. Know  Not Convert  Kenagarian  %  No.  No.  %  No.  %  1.  A i r Gadang  15  100.0  0  0.0  0  0.0  2.  Lingkung Aur  15  100.0  0.  0.0  0  0.0  3.  Aur Kuning  15  100.0  0  0.0  0  0.0  4.  Kapar  13  86.7  2  13.3  0  0.0  58  96.7  2  3.3  0  0.0  TOTAL/AVER.  The by t h e i r  respondents p r e f e r a n c e f o r an i r r i g a t i o n response to Question No. 12.  r e l e a s e any o f t h e i r  p r o j e c t was c o n f i r m e d  A l l o f them s t a t e d t h a t they would  land needed f o r i r r i g a t i o n  c a n a l s (see T a b l e 1-5)  and would not ask f o r compensation. TABLE 15: FARMERS' RESPONSE TOWARDS RELEASING LAND FOR A POTENTIAL  IRRIGATION  Release the  Land  PROJECT  Ask  Compensation  Kenagarian No.  %  No.  %  1.  A i r Gadang  15  100.0  0  0  2.  Lingkung Aur  15  100.0  0  0  3.  Aur Kuning  15  100.0  0  0  4.  Kapar  15  100.0 .  0  0  60  100.0  0  0  TOTAL/AVER.  TABLE 16:  THE AREA OF LAND CULTIVATED IN PADDY FOR SURVEY GROUP  Wetland  Upland  Rain fed  • Size  Aver.  Size  Aver.  Si ze  Aver.  (ha)  (ha/HH)  (ha)  Cha/HH)  (ha)  (ha/HH)  Total (ha)  Aver. Per HH (ha)  0.00  8.50  0.57  4.25  0.28  12.75  0.85  4.30  0.29  3.20  0.21  1 .80  0.12  9.30  0.62  Aur Kuning  6.00  0.40  2.40  0.16  0.50  0.03  8.90  0.59  Kapar  7.40  0.49  5.30  0.35  0  0.00  12.70  0.85  0.30  19.40  0.32  6.55  0.11  43.65  0.73  1.  A i r Gadang  2.  Lingkung Aur  3. 4.  TOTAL  0  17.7  TABLE 17:  THE ACREAGE OF LAND CULTIVATED WITH  TREE CROPS, PALAWIJA AND OTHERS FOR SURVEY GROUP  Rubber Kenagarian  Coconut  Clove  Coffee  Pal aweja & Others  s i ze  aver.  s i ze  aver.  size  aver.  size  aver.  size  aver.  (ha)  (ha/HH)  (ha)  (ha/HH)  (ha)  (ha/HH)  (ha)  (ha/HH)  (ha)  (ha/HH)  TOTAL (ha)  aver, per HH (ha)  1. A i r Gadang  1.75  0.12  1 .20  0.08  1.20  0.08  0.00  0.00  1 .40  0.09  5.55  0.37  2. Lingkung Aur  0.90  0.06  2.75  0.18  1 .80  0.12  0.50  0.03  1.10  0.07  7.05  0.47  3. Aur Kuning  2.80  0.19  1 .95  0.13  2.60  0.17  0.85  0.06  0.90  0.06  9.10  0.61  4. Kapar  0,00  0.00  . 3.30  0.22  0.90  0.06  0.00  0.00  1 .20  0.08  5.40  0.36  TOTAL/AVER.  5.45  0.09  9.20  0.15  6.50  0.11  1.35  0.02  4.60  0.08  27.10  0.45  99  With  regard to the s i z e o f l a n d h o i d i n g s , i t was found  on average, each  that,  respondent has 1.18 h e c t a r e s , o f which 0.73 h e c t a r e s  i s c u l t i v a t e d w i t h paddy (0.30 ha wetland paddy, 0.32 r a i n f e d paddy and 0.11 ha upland paddy) and 0.45 h e c t a r e w i t h t r e e crops and secondary crops  (see T a b l e s 16 and 1 7 ) .  I t seems d r a f t animals a r e q u i t e important f o r farming i n t h e study area.  In response to Question No. 14 one farmer w i l l , w i t h a d r a f t  animal on average, be a b l e to farm 2.27 h e c t a r e s wetland without a d r a f t animal a farmer w i l l  paddy, whereas  o n l y be a b l e to farm 1.55 h e c t a r e s  (Table 1 8 ) .  TABLE 18:  FARMERS' ABILITY TO CULTIVATE WETLAND PADDY (HA)  With  Draft  Animal  Without  D r a f t Animal  Kenagarian Total  Average  Total  Average  1.  A i r Gadang  35  2.33  25  1.67  2.  Lingkung Aur  33  2.20  23  1.53  3.  Aur Kuning  36  2.40  24  1.60  4.  Kapar  32  2.13  21  1.40  136  2.27  93  1.55  TOTAL/AVER.  100  Four W a l i n a g a r i s twelve  i n the study area were i n t e r v i e w e d .  q u e s t i o n s were designed  t o determine the general  o f l a n d ownership i n the study a r e a . with  the W a l i n a g a r i s  potential  o p i n i o n s about the o i l palm p r o j e c t and o t h e r  The responses  Question  characteristics  The o t h e r three q u e s t i o n s d e a l t  p r o j e c t s which might i n c r e a s e the farmers'  study a r e a . except  1  Nine out o f  o f the f o u r W a l i n a g a r i s  incomes i n the  to a l l q u e s t i o n s ,  No. 1, are s i m i l a r .  In the study area 61.25% o f the l a n d i s communal u l a y a t ) and 38.75% i s p r i v a t e l a n d (tanah. m i l i k l o r d e r to o b t a i n some communal mamak's approval  i s required.  land  (tanah  (see T a b l e 1 9 ) . In  land f o r a g r i c u l t u r a l I t can be e i t h e r o r a l  purposes,  the n i n i k  o r w r i t t e n and  there i s no o b l i g a t i o n i n terms o f money o r i n k i n d t o the n i n i k mamak o r the community. land  (UUPA^,  However, t h e law o b l i g e s him t o take care o f t h a t  1960 a r t i c l e  which can be a l l o t t e d I f the grantee will  15).  The maximum amount o f communal  land  to a f a m i l y o f the s o c i e t y i s about two h e c t a r e s .  does not c u l t i v a t e  t h i s l a n d f o r a t h r e e y e a r p e r i o d , he  l o s e h i s r i g h t t o the use o f the l a n d and i t w i l l  become  available  f o r someone who i s w i l l i n g to c u l t i v a t e i t .  I t seems there i s an o p p o r t u n i t y f o r an immigrant t o r e s i d e i n , o r c u l t i v a t e , communal l a n d . o f t h e kenagarian  17)  However, he has to obey t h e i l o c a l  adat law  and t o be adopted as the n i n i k mamak's nephew.  UUPA stands f o r Undang-Undang Pokok A g r a r i a . S t a t u t e number o f the y e a r 1960 c o n c e r n i n g B a s i c R e g u l a t i o n s on A g r a r i a n Pri n c i p l e .  I f he  five  101  does not obey the l o c a l  adat law, he w i l l  be r e t u r n e d to the n i n i k mamak. has  potential  law  cannot  expects  be e x p e l l e d and the l a n d w i l l  In t h e o r y , any immigrant e t h n i c group  access t o t h e communal l a n d .  be s e p a r a t e d  Howeyer, s i n c e the l o c a l  from the r e s i d e n t s ' r e l i g i o n ,  adat  each w a l i n a g a r i  the immigrants to be moslejn.  Communal  l a n d can be c o n v e r t e d to p r i v a t e l a n d with the n i n i k  mamak's a p p r o v a l .  T h i s type o f c o n v e r s i o n can o n l y o c c u r d u r i n g a mass  l a n d d i s t r i b u t i o n , i n which each f a m i l y o b t a i n s a l a n d T h i s c o n v e r t e d l a n d can be t r a n s f e r r e d o r s o l d t o o t h e r  TABLE 19.:  certificate. persons.  THE PROPORTION OF COMMUNAL AND.  PRIVATE LAND IN THE STUDY AREA  Communal Kenagarian  Land  P r i v a t e Land  (Percent)  (Percent)  1.  A i r Gadang  85. QO  15.00  2.  Lingkung Aur  45.00  55.00  3.  Aur Kuning  55.00  45.00  4.  Kapar  60.00  40.00  61 .25  38.00  AVERAGE  102  Without giving an explanation, a l l walinagaris Ophir Palm Project was a good project.  stated that the  However, when asked whether the  walinagaris would j o i n the project should i t be extended to t h e i r kenagarians, a l l walinagaris walinagaris  had no idea.  In addition, the four  concur with the s i * t y interviewed farmers, that an i r r i g a t i o n  project was the preferred project that should be implemented by the government in order to increase the farmers' income.  All  walinagaris  would be w i l l i n g to release communal land and t h e i r private land without compensation, i f needed for i r r i g a t i o n networks.  They would also welcome  local or national transmigration and would not require compensation for l o s t land provided the newcomers obeyed, or at least respected, t h e i r local adat law.  103  4.  ECONOMIC ASPECTS  Thus f a r , the i n v e s t i g a t i o n o f the p h y s i c a l c h a r a c t e r i s t i c s and social  aspects o f the study  area r e v e a l s t h a t :  s t u d i e d i s most s u i t a b l e  f o r food, m a i n l y  rice  d e s i r a b l e and  cultivation  i s both  p h y s i c a l l y the l a n d  r i c e p r o d u c t i o n , and  u r g e n t l y needed.  the best use o f the l a n d , the r e s u l t s o f a t r a d i t i o n a l ment w i l l  The  be  being  socially,  determine  economic a s s e s s -  employed.  p o p u l a r economic view has  been t h a t d e v e l o p i n g c o u n t r i e s s h o u l d  do e v e r y t h i n g p o s s i b l e to improve t h e i r balance been assumed t h a t i t was interests  To  the  of trade.  i n the n a t i o n ' s i n t e r e s t s and  Thus, i t has  i n the  farmers'  to produce as great a q u a n t i t y o f export commodities as  p o s s i b l e , even i f i t means s a c r i f i c i n g the p r o d u c t i o n o f s t a p l e food However, "we  have to erase  between a poor country's  from our minds the automatic  r i s i n g e x p o r t income and  w e l f a r e o f the m a j o r i t y o f the people" may  connection  improvement i n the  (Xappe, e t . a l , 1977  w e l l be t h a t the p r o d u c t i o n o f e x p o r t  crops.  p. 199).  It  commodities a t the expense o f  the p r o d u c t i o n o f b a s i c f o o d s t u f f s simply serves s h o r t term p o l i t i c a l special  i n t e r e s t o b j e c t i v e s , r a t h e r than  n a t i o n and  o f the  rice. price  a s s i s t i n g the w e l f a r e o f the  individual.  In Indonesia's o f producing  c a s e , i t i s worthwhile c o n s i d e r i n g the c o s t ^ b e n e f i t s  rubber, as an e x p o r t commodity, r a t h e r than  Penny and  or  Gittinger  0 9 7 0 } noted  ratio.ibetween r i c e and  rubber was  the food  t h a t , i n December 1966, about 1:3.3  per  crop,  the  world  kilogram.  That s h o u l d mean ( i n p u t o p e r a t i o n c o s t s being assumed, f o r our purposes to  104  be i d e n t i c a l ) , t h a t world-wide, a b l e to produce  i t would be over t h r e e times as  a k i l o g r a m o f rubber than a k i l o g r a m o f r i c e .  profitThus,  whenever p o s s i b l e , rubber s h o u l d be grown and the rubber farmer would make more than s u f f i c i e n t p r o f i t s , by s e l l i n g h i s rubber, t o buy three times  as  much r i c e as he c o u l d have produced h i m s e l f .  In I n d o n e s i a , however, the 1966 was,  i n fact, quite different  r a t i o was is  o n l y 1:1.2  price  ratio  from the general w o r l d p i c t u r e .  per k i l o g r a m .  o f Rp  rubber  The  price  T h i s i s even more s t r i k i n g when i t  d i s c o v e r e d t h a t the rumpiah p r i c e o f r i c e was  (Penny and G i t t i n g e r , 19.70).  between r i c e and  25% below the world  Thus, w i t h o u t the government s u b s i d i z a t i o n  25 f o r e v e r y k i l o g r a m o f imported r i c e , the domestic p r i c e s  r i c e and rubber would have been about t h a t rubber was  price  b e i n g encouraged  of  the same, n o t w i t h s t a n d i n g the  as a cash crop and t h a t the  fact  insufficient  p r o d u c t i o n o f domestic r i c e i n c u r r e d the c o s t o f s u b s i d y payments.  Thus, i f the w o r l d p r i c e o f r i c e was  Rp  100, and the  Indonesian  government s u b s i d i z e s i t by Rp 25 f o r every k i l o g r a m imported, the Indonesian s u b s i d i z e d p r i c e would be 25% below the world p r i c e , or o n l y Rp 7.5.  Under these circumstances the farmer would be able to buy  l e s s than the c o s t t o produce  i t p r o f i t a b l y , and the government would.be  f o r c e d to spend some o f i t s funds f o r the purchase which c o u l d have been produced  o f an imported  d o m e s t i c a l l y , w h i l e the farmer i s  to grow an e x p o r t commodity such as  Perhaps  r i c e at  product encouraged  rubber.  t h i s would be s a t i s f a c t o r y i f the rubber farmer c o u l d expect  the w o r l d p r i c e s , o r 3 times the p r i c e o f r i c e , f o r h i s rubber.  T h i s would  105  make the p r o d u c t i o n o f rubber a sound and j u s t i f i a b l e economic However, the peasant  farmer a c t u a l l y  Rp 90 per k i l o g r a m o f rubber. world p r i c e of r i c e .  to grow r i c e  r e c e i v e d a domestic p r i c e o f o n l y  That i s 10% lower than the u n s u b s i d i z e d  Thus, i f Indonesia's  reach the world p r i c e o f 100  undertaking.  Rp,  r i c e p r i c e were allowed t o  the farmer would f i n d i t more p r o f i t a b l e  than rubber and the government would not have t o use i t s  limited  funds on an a r t i f i c i a l  produce  an unnecessary  and  s u b s i d y designed t o encourage the farmer to  unprofitable  cash c r o p .  T h i s i s an example  o f government a s s i s t a n c e f o r a t h e o r e t i c a l l y p r o f i t a b l e leads to unnecessary  For the purpose  i n t e r f e r e n c e and an u n f o r t u n a t e  program t h a t ,  market-place.  o f u s i n g an economic assessment as the t h i r d  criteria  i n t h i s s t u d y , the economic advantage o f r i c e as opposed to o i l palm production w i l l possible  this  be compared i n the area under study.  comparison,  i t has  f i r s t o f . a l l , to be assumed that o i l palm  p r o d u c t i o n i s p h y s i c a l l y s u i t a b l e and s o c i a l l y area.  And  d e s i r e a b l e f o r the study  because o f the l i m i t a t i o n o f a v a i l a b l e  both commodities,  In order t o make  some necessary assumptions  and  data and i n f o r m a t i o n f o r limitations  have to be  made:  1.  The  basic figures  "Indonesia NES F r a n k f u r t 1980"  2.  used  f o r o i l palm a n a l y s i s are taken  - P r o j e c t Ophir 19.80, F i n a l  from  P r e p a r a t i o n Report,  (mimeo).  IPEDA - Iuran Pembangunun Daerah  (Regional Development l e v y ) t a x  o f 5% o f the net value o f p r o d u c t i o n , i s i n c l u d e d i n the o i l palm a n a l y s i s .  In r i c e  a n a l y s i s , however t h i s  tax i s not  106  included.  The  main reason  f o r t h i s i s t h a t the  r i c e growers i s not c o n t i n u a l l y c o l l e c t e d and  IPEDA tax on  is relatively  smal1.  3.  The  d u r a t i o n f o r o i l palm c u l t i v a t i o n i s 19 y e a r s .  I t does not  n e c e s s a r i l y r e f l e c t the l i f e - s p a n o f the o i l palm p r o j e c t , but this  4.  i s done because the a v a i l a b l e data i n (1) i s o n l y p r o j e c t e d  for  this  The  first  time.  h a r v e s t o f o i l palm i s i n the f o u r t h y e a r .  the net income per h e c t a r e over  5.  19 y e a r s  A rice  i s d e r i v e d from the average income  of c u l t i v a t i o n , s t a r t i n g with  farmer's  c r e d i t o r loan f o r new  the f i r s t  221,1Q1 ^ per h e c t a r e . 18  year.  land preparation  takan'sawah baru) i s c a l c u l a t e d as an i n p u t c o s t . t h i s c r e d i t i s Rp  However,  The  (penceamount o f  For the purpose o f  t h i s comparison, however, the l a n d p r e p a r a t i o n c r e d i t i s e q u a l l y d i v i d e d i n t o 19 y e a r s . is  6.  Rp  11 ,637  (RP  Thus, the i n p u t c o s t per ha per  221,101 : 19).  I t i s assumed t h a t as water w i l l f a c t o r , there w i l l  be  two  p r a c t i s e d by many farmers one  hectare  i s one  18)  Source:  year  rice  crops per y e a r , as has  i n Indonesia.  of rice c u l t i v a t i o n  h a l f o f Rp 1 1 ,637  no l o n g e r be a c o n s t r a i n i n g  o r Rp  been  Thus, the i n p u t c o s t f o r  from the l a n d p r e p a r a t i o n 5,818.5.  t h i s w r i t e r ' s i n t e r v i e w with W a l i n a g a r i , J u l y  1981  credit  107  7.  Another i n p u t c o s t f o r r i c e  cultivation  program l o a n , which c o n s i s t s o f :  i s Bimas  (Mass Guidance)  seeds, f e r t i l i z e r s ,  pesticide  and a l i v i n g allowance (see Table 22).  8.  By u s i n g these p r o d u c t i o n i n p u t s  ( 7 ) , the r i c e y i e l d  i s e s t i m a t e d a t 4 tons o f unhusked r i c e t h a t the per h e c t a r e r i c e y i e l d  9.  The c o n v e r s i o n r a t e o f paddy rice  i s 60%.  per ha.  I t i s assumed  i s c o n s t a n t f o r each h a r v e s t .  (unhusked) r i c e  to market  For example, 100 kg o f unhusked r i c e  60 kg o f h u l l e d  rice,  (Note;  per h a r v e s t  hulled rice  (hulled)  results in  i s usually sold in  Indonesia).  10.  The r i c e Simpang  p r i c e i s based on the average p r i c e o f h u l l e d r i c e i n Empat, the c e n t r e o f Development Sub-Region  Dalam Augka, 1979). 1 978 f i g u r e s  11.  I  (Pasaman  T h i s p r i c e , . R p 186 per kg, i s based on  (see T a b l e 23).  So f a r , water users are f r e e Outer I s l a n d s . included i n this  from water t a x , e s p e c i a l l y i n the  Thus, the i r r i g a t i o n  p r o j e c t c o s t i s not  comparison.  By t a k i n g a l l o f these assumptions i n t o account i n p r e p a r i n g the income and e x p e n d i t u r e a n a l y s i s o f the two communities, the f o l l o w i n g c o n c l u s i o n s can be  drawn:  108  TABLE 20: INCOME-EXPENDITURE ANALYSIS OF PER HA OIL PALM PRODUCTION WITH IPEDA TAX ('000 Rp)  Gross Value of Production  Year  Cost o f Producti'on ' 1 9  Net Value of Production  Debt Net Value Repayment of Production after on A IPEDA t a x ^  Net Income  u ;  0 1 •2 '  109.25  109.25  3 >  115  0  115  4  364  95  269  255.55  -  255.55  5  612  95  517  491 .15  114.0  377.15  6  722  95  627  595.65  105.0  490.65  7  882  95  787  747.65  98.5  649.15  8  924  95  829  787.55  92.0  695.55  9  924  95  829  787.55  86.0  701.55  10  924  95  829  787.55  80.5  707.05  11  924  95  829  787.55  75.0  712.55  12  882  95  787  747.65  70.0  677.65  13  882  95  787  747.65  65.5  682.15  14  882  95  787  747.65  65.5  682.15  15  882  95  787  747.65  65.5  682.15  16  882  95  787  747.65  65.5  682.15  17  882  95  787  747.65  65.5  ' 682.15  18  840  95  745  707.75  46.5  661.25  21  9,448.10  TOTAL Source:  C a l c u l a t e d from "Indonesia NES - P r o j e c t Ophir P r e p a r a t i o n Report, F r a n k f u r t 1980" (mimeo).  1980, F i n a l  19)  C o n s i s t s o f : f e r t i l i z e r , p e s t i c i d e , cover c r o p s , f r u i t t r a n s p o r t a t i o n c o s t and o t h e r c o s t s d u r i n g the f i r s t t h r e e y e a r s , such as o i l palm p l a n t i n g material .  20)  IPEDA tax = 5% net value o f p r o d u c t i o n .  21)  The y e a r o f o i l palm p r o d u c t i o n .  109  TABLE 21: INCOME-EXPENDITURE ANALYSIS OF PER HA OIL PALM PRODUCTION WITHOUT IPEDA TAX ('000 Rp)  Year  Gross Value of Production  Cost o f Production  Net Value o f Production  Debt Repayment  Net Income  0 1 2 3  115  0  115  -  115.0  4  364  95  269  -  269.0  5  612  95  517  114.0  403.0  6  722  95  627  105.0  522.0  7  882  95  787  98.5  688.5  8  924  95  829  92.0  737.0  9  924  95  829  86.0  743.0  10  924  95  829  80.5  748.5  11  924  95  829  75.0  754.0  12  882  95  787  70.0  717.0  13  882  95  787  65.5  721 .5  14  882  95  787  65.5  721 .5  15  882  95  787  65.5  721 .5  16  882  95  787  65.5  721 .5  17  882  95  787  65.5  721 .5  18  840  95  745  46.5  698.5  10,003.0  TOTAL  Source:  Calculated Final  from "Indonesia NES - P r o j e c t Ophir 1980,  P r e p a r a t i o n Report, F r a n k f u r t 1980" (mimeo).  no TABLE 22:  BIMAS PROGRAM LOAN PER HECTARE  Amount o f Loan (Rp/ha)  Quantity  Item  25 kg  3,750  Urea  150 kg  10,500  TSP  100 kg  7,010  Pesticide  .  2 It  2,460  Rodenticide  0.1 kg  230  S p r a y i n g Cost  cash  2,000  Living  cash  10,000  Seeds  Allowance  35,940  TOTAL Source:  BRI - Bank Rakyat Indonesia O f f i c e , Simpang Empat.  (Indonesia's A g r i c u l t u r a l Bank  TABLE 23: AVERAGE RETAIL HULLED RICE PRICE AT THE FREE MARKET IN SOME KECAMATAN CAPITALS IN KABUPATEN (DISTRICT) PASAMAN, 1977, 1978, 1979 AND 1980 (Rp/Kg)  YEAR  PLACE  1  1977  1978  1979  1. Bonjol  137.50  144.50  195.80  215.38  2. Rao  133.30  146.30  166.70  183.37  3. Simpang Empat  131.60  135.80  169.40  186.34  Source:  22)  For the y e a r 1977, 1978 and 1979 the average from "Pasaman Dalam Angka, 1979".  1980'"  J  price i s calculated  For t h e y e a r 1980, the e s t i m a t e d p r i c e i s c a l c u l a t e d by adding a p r i c e i n c r e a s e o f 10% ( t h e p r i c e i n c r e a s e from 1978 t o 1979 was 35%, 13% and 25% f o r B o n j a l , Rao and Simpang Empat r e s p e c t i v e l y ) .  Ill  TABLE 24: INCOME-EXPENDITURE ANALYSIS OF PER HA WETLAND RICE PRODUCTION ^ 23  Expenditure  Income  a. Bimas l o a n 71,880 (2 x Rp 35,940 f o r two h a r v e s t s )  a. T o t a l r i c e p r o d u c t i o n f o r two h a r v e s t s = 8 tons ( 2 x 4 tons f o r each h a r v e s t Conversion r a t e = 60% Total hulled rice = 4.8 t o n s .  b. Loan f o r new l a n d p r e p a r a t i o n (pencetakan sawah) Rp 11,637 (2 x Rp 5,818.5)  Net  Income  b. T o t a l income = Rp 892,800 (4,800 x Rp 186)  Total  23)  i n p u t = Rp 83,517  Calculation  T o t a l output = Rp 892,800  i s based on two h a r v e s t s p e r y e a r  Rp 809,283  112  1.  The annual the  2.  net income per h e c t a r e from growing o i l palm (with  IPEDA t a x ) i s Rp 4 9 7 , 2 6 8 *  (equal to US  24  The annual net income per h e c t a r e from growing r i c e h a r v e s t s a y e a r ) i s Rp 809,283 (equal to US  3.  $795.63).  By assuming  that o n l y one  rice  (with two  $1,294.85).  crop i s grown each y e a r , the 25)  net  income would be Rp 404,641.5, 19%  1  lower than the net  income o f growing o i l palm w i t h the IPEDA t a x , o r 23% lower than oil 4.  palm grown w i t h o u t t h e IPEDA t a x .  Without the IPEDA tax the net income from growing o i l palm per hectare i s Rp 526 ,473.6 ^  (equal to US $842.36).  26  This i s  130% o f the net income f o r s i n g l e - c r o p r i c e , but 35% lower than the  5.  net income f o r double-crop r i c e p r o d u c t i o n .  However, by assuming  that r i c e  i s double-cropped  (as i s usual  i n Indonesia i f the water p r o v i s i o n i s not a c o n s t r a i n t ) , the net  income from r i c e  Rp 9,448,100  25)  One r i c e crop a y e a r Rp 404,641.5 Thus, the net income o f O i l palm with IPEDA Rp 497,268 ' one r i c e c r o p . i s 19% lower than o i l palm w i t h the IPEDA t a x . The same a p p l i e s to c a l c u l a t e o t h e r percentage f i g u r e s .  26)  Rp 10,003,000  R p  ^  growing  24}  =  ^  growing i s 163% t h a t o f o i l palm  u $  s  R p  5  2  6  $ ]  =  R p  g  s  j  4  7  3  .  6  2  5  m  113  with the IPEDA tax o r 154% the  6.  t h a t o f o i l palm p r o d u c t i o n w i t h o u t  IPEDA t a x .  Thus w i t h o r w i t h o u t IPEDA t a a , growing o i l palm i s not more profitable  than growing r i c e .  i s more p r o f i t a b l e  On the c o n t r a r y , growing  than growing o i l palm.  rice  114  CHAPTER VI  DISCUSSION AND  1.  CONCLUSION  Introduction  The  development  objectives  f o r West Pasaman and the necessary means  to a c h i e v e them haye been b r i e f l y e x p l a i n e d i n Chapter I . the contemporary How  development  In Chapter I I ,  t h e o r i e s have been d i s c u s s e d and  reviewed.  these t h e o r i e s r e l a t e to the i d e a and implementation o f r e g i o n a l  development general  p l a n n i n g i n Indonesia i s the main concern o f Chapter I I I .  A  d e s c r i p t i o n o f West Pasaman's socio-economic p a t t e r n s , the b a s i c  i d e a o f p r o p o s i n g the c r u c i a l  p r o j e c t s , i , e . the road and o i l palm  p r o j e c t s , and the a n a l y s i s o f b a s i c food needs o f the West Pasamanians have been p r e s e n t e d i n Chapter IV. physical  c h a r a c t e r i s t i c s o f the s i t e , the socio-economic environment,  an economic assessment  The  Chapter V covered an a n a l y s i s o f the and  o f palm o i l and wetland r i c e p r o d u c t i o n .  necessary d i s c u s s i o n o f the problems  i d e n t i f i e d i n these  five  c h a p t e r s , i n an attempt to draw a c o n c l u s i o n , i s the main concern o f t h i s chapter.  115  2.  Discussion  The  " s h o r t - c u t approach" used by the WPDP team i s based on  the .  p r i n c i p l e s t a t e d i n Chapter I, i n which a r e g i o n a l development p l a n i s not  an end  in i t s e l f ;  i t i s o f value  are r e a l i z e d as soon as p o s s i b l e . i n p u t i n t o West Pasaman and potential  i n v e s t o r s who  identified. t h a t , besides  And  The  lack o f information  by those  prospective agencies  might i n v e s t i n the r e g i o n , must f i r s t l y  b e i n g i n accordance w i t h  the team took the  be  the team b e l i e v e  o f the p r o s p e c t i v e i n v e s t o r s ,  p r i v a t e or p u b l i c , domestic, f o r e i g n or m u l t i n a t i o n a l .  criteria,  and  the p o l i c y makers' o b j e c t i v e s ,  must f i n d the approyal  attempts to i d e n t i f y a p r o j e c t proposal these  team argued t h a t the  i n i d e n t i f y i n g the p r o j e c t p r o p o s a l s  the p r o j e c t p r o p o s a l s be they  the  o n l y i f as many o f i t s p r o p o s a l s  In i t s  f o r West Pasaman which would meet  following steps:  1.  A s y s t e m a t i c s e a r c h f o r a v a i l a b l e development funds (e.g. P u b l i c Works development f o r the feeder road programmes; UNICEF f o r the h e a l t h programme and the n u t r i t i o n a l s e c t o r , ADP f o r a g r i c u l t u r a l development);  2.  Adaption o f p l a n n i n g p r o p o s a l s and ongoing development a c t i v i t i e s / p r o j e c t s (e.g. ADP's t r a c t o r u n i t s t a t i o n e d at Sukamenanti, Kecamatan Pasaman);  3.  T a l k s with p r o s p e c t i v e i n v e s t o r s i n o r d e r to f i n d out t h e i r p r e c o n d i t i o n s f o r p r o j e c t implementation (e.g. SIPEF, a company showing keen i n t e r e s t i n running the Nucleus E s t a t e f o r the s m a l l h o l d e r s ' o i l palm p r o j e c t ) ;  4.  Checking these p r e c o n d i t i o n s a g a i n s t the o b j e c t i v e o f the o f f i c i a l p l a n n i n g bodies and the f e l t needs o f the p o p u l a t i o n ;  5.  Working out o p e r a t i o n a l programmes f o r these p r o j e c t s and programmes which haye proved c o n s i s t e n t w i t h the aim o f e v a l u a t i n g t h e i r ( r e g i o n a l ) development e f f e c t s and f i n d i n g about the investment r i s k s i n v o l v e d . (WPDP, 1975a p.  14).  out  116  It t h a t the  seems t h a t the first  first  two steps a r e a p p r o p r i a t e .  step i s necessary  Itis  t o a v o i d o v e r l a p p i n g budgets.  second step i s meant t o harmonize the ongoing p r o j e c t s with project proposals. third  obvious And t h e  the new  In f a c t , however, once the team had worked out the  s t e p , the team's value judgements and b i a s s h o u l d have been  i n c o r p o r a t e d i n t o the d e c i s i o n making p r o c e s s .  For example,  tacitly  without  r e g a r d t o o t h e r p o s s i b l e o p e r a t o r s , the WPDP team had s e l e c t e d SIPEF to  run the Nucleus E s t a t e i n the Ophir a r e a .  T h i s would be s a t i s f a c t o r y  i f SIPEF was the o n l y company which was a b l e t o run such an e s t a t e . However, there are some state-owned companies Perkebunan) which are capable  o f running  T h e r e f o r e , i t i s necessary the main reason  the Nucleus E s t a t e .  t o ask the  following question.  The .most p r o m i s i n g  Company, a t l e a s t with Republic  i t s General  o f Germany i n Medan (_North Sumatra).  question  the SIPEF  Manager, who i s a l s o a Consul  c l e a r t h a t i f SIPEF had been accepted E s t a t e i n Ophir  What was  answer to t h i s  t h a t i t was because the WPDP team had good r e l a t i o n s with  Federal  Terbatas  f o r the WPDP team t o choose SIPEF as an implementor o f  the Nucleus E s t a t e i n Ophir? is  CPTP - Perusahaan  o f the.  Thus, i t i s q u i t e  as an implementor o f the Nucleus  a r e a , the team's value judgement and b i a s would have been  i n c o r p o r a t e d i n t o the d e c i s i o n making p r o c e s s .  SIPEF has however l o s t  the o p p o r t u n i t y as the PTP VI was chosen t o run such an e s t a t e .  The was  p r a c t i c e o f step t h r e e o b y i o u s l y showed t h a t economic a n a l y s i s  the only c r i t e r i a  project proposal.  used by the team i n i t s e f f o r t s to d e l i n i a t e the  Other f a c t o r s ( p h y s i c a l and s o c i a l ) tended t o be  minimized; w h i l e a l t e r n a t i v e  p o s s i b i l i t i e s were not pursued.  117  As  has  been mentioned i n Chapter  IV, the high s t a n d a r d o f the  proposed  road p r o j e c t n e c e s s i t a t e s the enlargement o f the area f o r o i l palm v a t i o n ; thus  culti-  the road p r o j e c t and o i l palm p r o j e c t are mutually s u p p o r t i v e .  In t h i s c h a p t e r the e f f e c t i v e n e s s o f the s h o r t - c u t approach on the mentation  process o f the two  projects will  be d i s c u s s e d .  hip between the proposed theories. overall  2.1  The  crucial  p r o j e c t s , i . e . the  This chapter w i l l  road a n d - o i l  a l s o d i s c u s s the  o i l palm p r o j e c t and the contemporary  f o r the  Short-Cut Approach and the C r u c i a l P r o j e c t s  Pasaman was  assumed to be a major road.  f o r the road p r o j e c t was Walter  conducted  The  i n 1975.  f o r West  econcomic f e a s i b i l i t y In 1976,  study  DIWI (Dr. Ing  I n t e r n a t i o n a l ) , an e n g i n e e r i n g c o n s u l t i n g f i r m from West Germany,  conducted  a technical  and submitted  ( e n g i n e e r i n g ) f e a s i b i l i t y study f o r the same road  i t s r e p o r t to the government o f Indonesia  government o f the  and to the  Federal R e p u b l i c o f Germany i n September  S u r p r i s i n g l y , i n J u l y 1978  1977.  DIWI came back to West Pasaman t o  additional  f i e l d work and submitted  additional  f i e l d work c o n c e n t r a t e d on the study o f the Pasaman  c r o s s i n g a t A i r Gadang (see Map  had  development  thesis.  As s t a t e d e a r l i e r , the most u r g e n t l y r e q u i r e d investment  type  palm  relations-  purpose o f these d i s c u s s i o n s i s to p r o v i d e support  conclusion of this  imple-  5).  a further report in April  not recommended the c o n s t r u c t i o n o f a b r i d g e i n t h i s  grounds t h a t i t would be too c o s t l y .  1979.  The  pontoon-  WPDP team  p l a c e on  However, DIWI's f i n a l  The  river  At p r e s e n t a c a b l e - c o n t r o l l e d  f e r r y i s used to c a r r y a l l v e h i c l e s a c r o s s the r i v e r .  do  report  the  118  concluded t h a t the c o n s t r u c t i o n o f a bridge economical  than the continued  use o f the f e r r y  In f a c t , the c o n s t r u c t i o n o f a bridge the  project's contract  (DIWI, 1979).  at A i r Gadang was i n c l u d e d i n  f o r S e c t i o n A (Simpang Empat - Manggopoh).  d e c i s i o n t o c o n s t r u c t the bridge i n f l u e n c e on the r e g i o n ' s a shift  at A i r Gadang would be more  overall  This  at A i r Gadang has had a s i g n i f i c a n t planning  strategy.  The r e s u l t has been  from a s i n g l e - p o l a r s t r a t e g y to a b i - p o l a r s t r a t e g y .  The WPDP's  r e p o r t which had r e j e c t e d the b r i d g e , had proposed a s i n g l e - p o l a r strategy:  ....Simpang Empat i s to become the f u n c t i o n a l — a n d i n a l a t e r stage a l s o the a d m i n i s t r a t i v e — c e n t e r o f West Pasaman. It i s the o n l y p l a c e on the top l e v e l o f the h i e r a r c h y o f c e n t r a l places. Above a l l , t h i s i s due to i t s s t r a t e g i c l o c a t i o n a t the area's main c r o s s r o a d s . B e s i d e s , Simpang Empat i s s i t u a t e d i n the most i n t e n s i v e l y used p a r t o f West Pasaman which i n the f u t u r e w i l l see the most r a p i d i n c r e a s e o f a g r i cultural production. (WPDP, 1975a p. 183).  In March 1979, however, the German A p p r a i s a l  Mission  (headed by the  previous  team l e a d e r o f WPDP i n 1975) came to West Pasaman  progress  o f German T e c h n i c a l  Cooperation  i n the a r e a .  to e v a l u a t e the  In i t s r e p o r t o f  May 1979, the team proposed a " b i p o l a r i n t e g r a t e d development" by p u t t i n g two c e n t r e s  i n West Pasaman with  Ujung Gadang (see Map 6 ) .  the same rank, i . e . , Simpang Empat and  I t i s s t a t e d i n the A p p r a i s a l  Mission's  report  that:  Each o f the two centres--Simpang Empat and Ujung Gadang--stands on the top o f a three l e v e l h i e r a r c h y o f c e n t r a l p l a c e s o r service centres. The southern s u b - u n i t around Simpang Empat i n c l u d e s three s u b - c e n t r e s ( T a l u , K i n a l i , Sasak) and one sub-5wb.  RENCANA PEMBANGUNAN PASAMAN BARAT WEST PASAMAN DEVELOPMENT PLANNING  Legend. 0  Ibukota kabupatan  Capital of Kabupatan  •  Ibukota kacamatan  Capital of Kacamatan  •  Ibukota *m.*t*n*n  Ma^an toaoquartat  C  Tampat Lamnya  Oinar placa  ,_ _ _  Batas propinai  Provatcial boitof  Batai kabupatan  Kabupatan border  Bataa kacamatan  Kacamatan bordar  Batai kanaganan Naoan boidar  Scale 1 : 500.000 a t  i  a  ' i  i  •  '»»  MAP  Crorxin^  S.  point ai A»V £ a d 0 * 3  120  c e n t r e (Cubadak). In t h e north-western p a r t around Ujung Gading two sub-centres (Paraman Ampalu and A i r Bangis) and o n e j u b . sub-centre (Desa Baru) have been i d e n t i f i e d . (Appraisal M i s s i o n Report, 1979 p. 1 0 ) .  The was,  WPDP team's d e c i s i o n not to recommend the b r i d g e  a t A i r Gadang  t o a great e x t e n t , i n f l u e n c e d by i t s s h o r t - c u t approach.  reasons u n d e r l i e t h i s d e c i s i o n .  The f i r s t  Two p o s s i b l e  i s t h a t the team was unable to  f i n d p o t e n t i a l i n v e s t o r s who would i n v e s t t h e i r money i n the northern  part  o f the study area (settlement scheme f o r A i r Runding area as the f i f t h : crucial  p r o j e c t , see Page 6 ) .  development o f r e s o u r c e s palm, was s u f f i c i e n t  The second p o s s i b l e reason  around Simpang Empat to t h e s o u t h , mainly o i l  to j u s t i f y  Empat - Manggopoh - Lubuk Alung. process; it  the c o n s t r u c t i o n o f the road: I t i s true t h a t p l a n n i n g  i t i s not an end i n i t s e l f ,  is difficult  Simpang  is a recurring  as s t a t e d i n WPDP's r e p o r t .  to understand why the s t r a t e g y s h o u l d  change i n p l a n n i n g  i s t h a t the  However,  change without any  issues.  With regard t o t h e o i l palm p r o j e c t , the team began by i d e n t i f y i n g SIPEF, a f o r e i g n company o p e r a t i n g i n North Sumatra p r i m a r i l y on o i l palm c u l t i v a t i o n , as a p o t e n t i a l i n v e s t o r f o r an o i l palm Nucleus  Estate  in Ophir.  for o i l  T h i s company had a l r e a d y completed a f e a s i b i l i t y  palm development on 4,000 ha o f the former Ophir agreement between SIPEF and the M i l i t a r y  E s t a t e i n 1975 and an  (represented  by the M i l i t a r y  Command o f K0DAM 111/17 Augustus to whom the former Ophir entrusted) the  Foreign  had been reached and s a n c t i o n e d  Estate i s  on J u l y 25, 1975.  Investment A p p l i c a t i o n Form A had been submitted  Investment C o o r d i n a t i n g  Board  study  (Badan K o o r d i n a t i  In a d d i t i o n , to the  Penanaman Modal - BKPM)  RENCANA PEMBANGUNAN PASAMAN BARAT WEST PASAMAN DEVELOPMENT PLANNING  Legend. '*}  ttmfcota kafiuoatan  Capita* of Kaoupttan  O ttwhoU kec*m«l»n •  IDukoU kanaoanan  Nagan taadquartw  O  Tarppat Lannya  Olhar placa  ______  «»_  centre  . Capital of Kacamatan  Jub-centre  Balaa propmi  Promnciai bortaf  Bataa kabvpafan  Kabwpaian Utvfla*  Batai kacamalan  Kacamaian borda*'  Balai kanaganan  Nagan txxOai  Q)  SAAb-Sub- C e n t r e "bi-polar  Scale 1: 500 000 i i i *  i  i  •  MAP  6  strategy'  .  To H a n ^ o p o K  122  through the D i r e c t o r General o f P l a n t a t i o n s , Department Jakarta.  However, the PTP V I , a state-owned p l a n t a t i o n  o f Agriculture, company which had  had e x p e r i e n c e i n o i l palm p r o d u c t i o n , was chosen t o run the Nucleus Estate i n Ophir.  The e x p u l s i o n o f SIPEF from West Pasaman i s , t o some e x t e n t , r e l a t e d to the p l a n n i n g approach used by the WPDP team and can be e x p l a i n e d by the q u e s t i o n s r a i s e d by the unnatural advantages SIPEF gained by t h i s approach.  Based on the team's s h o r t c u t approach, t h e team was i n favor  o f d e t e r m i n i n g and c a t e r i n g t o the p o t e n t i a l The team committed  i t s e l f t o SIPEF's  investor's  preconditions.  p r e c o n d i t i o n , i . e . the c o n s t r u c t i o n  o f a new road from Simpang Empat t o Mangappoh  (69 km) and an improvement  o f the e x i s t i n g road from Manggapoh to Lubuk A l u n g (72 km). why  I t i s unclear  the team d i d n o t do the same t h i n g f o r the domestic company, PTP V I ,  o r o t h e r state-owned p l a n t a t i o n companies q u e s t i o n i s whether  as i t d i d f o r SIPEF.  SIPEF had p e r m i s s i o n t o conduct i t s f e a s i b i l i t y  f o r the Nucleus E s t a t e from any l e v e l o r l o c a l ) o r j u s t from the WPDP?  o f government  (central,  study  provincial  The WPDP team, as a p l a n n i n g team, d i d  not have the r i g h t to grant such a r e q u e s t .  I t seems t h a t the team's s h o r t -  cut approach b l u r r e d the d i v i s i o n o f r e s p o n s i b i l i t i e s decision  Another  between p l a n n e r s and  makers.  I t i s the r e s p o n s i b i l i t y o f the p l a n n e r t o convince p o t e n t i a l through p r e p a r i n g sound p r o p o s a l s , which are not opposed  to p o l i c y  investors makers'  o b j e c t i v e s and which are s o c i a l l y a c c e p t a b l e t o t h e concerned s o c i e t y , r a t h e r than t o r e s t r i c t  policy  f o r m u l a t i o n t o l i m i t s s e t by an i n v e s t o r ' s  123  i n t e r e s t s or preconditions.  This  s e c t o r because the r e s t r i c t i o n s i n t e r e s t preconditions  2.2  placed  o f the r u r a l  on p r o j e c t s e l e c t i o n by p r i v a t e  population  a l l p o s s i b l e proposals  O i l Palm P r o j e c t and Regional  As has been w i d e l y d i s c u s s e d  or t h e i r  Development  merits.  Theory  i n Chapter I I , the contemporary balanced  versus unbalanced growth t h e o r i e s ; urban-based i n d u s t r i a l development s t r a t e g y ; and development from above  from below. the  o f the  and r e s t r i c t the oppor-  development t h e o r i e s can g e n e r a l l y be grouped i n t o :  rural  i n the p u b l i c  i n e v i t a b l y l e a d to the s u b o r d i n a t i o n  i n t e r e s t s o f the m a j o r i t y t u n i t y to examine  is particularly crucial  Although d i f f e r e n t w r i t e r s  growth  strategy  versus  regional  versus  development  give d i f f e r e n t c o n n o t a t i o n s to  s t r a t e g y o f development, the proposed s t r a t e g i e s are more o r l e s s  s i m i l a r i n aim and d i r e c t i o n .  For example, L e l e  (1975) d e f i n e d  rural  development,  as improving l i v i n g standards o f the mass o f the low-income p o p u l a t i o n r e s i d i n g i n r u r a l areas and making the process o f t h e i r development s e l f - s u s t a i n i n g . (p. 2 0 ) .  Dantwala  (1977) argues t h a t ,  i f the i d e a i s to s t i m u l a t e s e l f - s u s t a i n i n g growth i n the r u r a l a r e a , the p r o j e c t must have a growth r a m i f i c a t i o n e f f e c t on l o c a l , n a t u r a l and man power r e s o u r c e s , (p. 4 ) .  124  and  S t o h r and T a y l o r  (1981) w r i t e ,  Development 'from below' c o n s i d e r s development to be based p r i m a r i l y on maximum m o b i l i z a t i o n o f each area's n a t u r a l , human, and i n s t i t u t i o n a l resources w i t h the primary o b j e c t i v e b e i n g the s a t i s f a c t i o n o f the b a s i c needs o f the i n h a b i t a n t s o f that a r e a . (p. 3 ) .  The  main purpose o f t h i s s e c t i o n i s to d i s c u s s  the o i l palm p r o j e c t  o f West Pasaman i n i t s r e l a t i o n to the contemporary r e g i o n a l  development  theories.  L i t t l e attempt i s made i n the o i l palm p r o j e c t proposal the  o v e r a l l e f f e c t s o f such a p r o j e c t .  forward l i n k a g e s  to determine  The p r o j e c t does n o t c r e a t e  o r backward l i n k a g e s .  either  The p r o j e c t was planned to reduce  income d i s p a r i t i e s between d i f f e r e n t Kabupatens ( d i s t r i c t s ) i n West Sumatra.  However, achievement o f t h i s o b j e c t i v e w i l l  create  s e n s i t i v e income imbalance between the o i l palm s m a l l h o l d e r s farmers o f the r e g i o n .  The p r o j e c t e d  a very and the o t h e r  farm income o f the o i l palm  small-  27)  holder w i l l  be r o u g h l y 16  ' times the e x i s t i n g average farm income.  By a l l o t t i n g 5 ha o f l a n d to each p r o j e c t p a r t i c i p a n t (while the s o c i e t y s t i l l small  lacks arable  group o f p e o p l e .  This  l a n d ) , the p r o j e c t w i l l  contradicts  the r e s t o f  benefit only a  the i d e a o f development from  below.  In p r o p o s i n g t h i s o i l palm p r o j e c t , the main c o n s i d e r a t i o n  27)  has been  The e x i s t i n g (1974) annual gross farm income was about Rp 124,384 or equal t o US $299.72 (US $1 = Rp 4 1 5 ) .  125  based on the c e n t r a l government's development o b j e c t i v e s as s t a t e d i n the WPDP's r e p o r t  (p. 5 ) . The o i l palm p r o j e c t w i l l  be a c c e p t a b l e  to the  central  government as l o n g as t h e p r o j e c t can appear to meet these  tives.  From the p r o v i n c i a l and l o c a l  it  (Kabupaten) governments'  objec-  viewpoint,  i s b e l i e v e d t h a t the more investment t h a t i s made i i i t h e i r a r e a s , t h e  more prospects ested  and the h a p p i e r they w i l l  be. They a r e p a r t i c u l a r l y  i n b e n e f i t i n g from investments made by t h e c e n t r a l  the  development budget f o r these two p r o j e c t s  had  to be found from w i t h i n  government.  p r o j e c t s as n o t being  Since  If  (the road and o i l palm)  the p r o v i n c i a l and l o c a l  governments' budgets,  i t would be q u i t e p o s s i b l e t h a t these governments would forsake two  inter-  these  priorities.  t h e o i l palm p r o j e c t does not c r e a t e e i t h e r backward o r forward  l i n k a g e s , i t c o u l d be p o s s i b l e t h a t the improvement o f the t r a n s p o r t a t i o n network from the study area t o Padang w i l l  speed up t h e process o f  d r a i n i n g West Pasaman r e s o u r c e s ;  example o f "development from  a typical  above".  As  s t a t e d p r e v i o u s l y , before  had  already  identified  and  a f f e c t e d by, the p l a n n i n g  d e l i n e a t i n g p r o j e c t proposals  the r e c i p i e n t groups which were i n t e r e s t e d i n , f o r West Pasaman.  Germany with i t s BMZ  (Ministry  f o r Economic C o r p o r a t i o n s )  Technical  and C a p i t a l A i d P r o j e c t s , and P a r l i a m e n t  and o t h e r o r g a n i z a t i o n s  administering  (see page 9) was  i d e n t i f i e d as a r e c i p i e n t group f o r the West Pasaman development This  implies  t h a t the i n t e r e s t s o f these o r g a n i z a t i o n s  i n t o t h e WPDP's c o n s i d e r a t i o n typical  the team  plan.  had been taken  i n d e l i n e a t i n g the o i l palm p r o j e c t ; a  example o f "development from above".  126  Bearing t h i s  information  Ophir i s l o c a t e d i n a r u r a l not it  f o l l o w the p r i n c i p l e  i n mind, though the o i l palm p r o j e c t i n  area,  i t can be s a i d  t h a t t h i s p r o j e c t does  o f "development from below".  t y p i f i e s an example o f "development from above".  On the  contrary,  127  3.  Conclusion  A b r i e f e v a l u a t i o n o f the b a s i c food needs o f the indigenous of  West Pasaman as a whole, as well as o f Kecamatan Pasaman  people  itself,  r e v e a l s t h a t adequate p r o d u c t i o n o f r i c e , which i s the b a s i c food, i s still  the main problem to be s o l v e d i n t h a t a r e a .  p r o d u c t i o n per c a p i t a o f West Pasaman i s 127.9 Indonesia's this  gap  average r i c e  i s even wider;  Kecamatan Pasaman 103.4  consumption.  The  average  kg, about 8.6%  rice below  For Kecamatan Pasaman  itself,  the average r i c e p r o d u c t i o n per c a p i t a  of  (the area where the l a n d being s t u d i e d i s l o c a t e d ) i s  kg, about 25.9%  below the Indonesian  consumption  figure.  Viewed i n terms o f the main o b j e c t i v e s o f R e p e l i t a I I I (see p.4-C>) and  from the r i c e production-consumption  imbalance i n West Pasaman,  r i c e p r o d u c t i o n s h o u l d be the most urgent p r o j e c t to be developed study  area.  The  analysis o f physical characteristics  studied i s suitable of  for rice  cultivation.  the study area were brought  4,079 ha o f brush  and  into  use  shows t h a t the l a n d being  I f the a v a i l a b l e water  a year.  g r a s s l a n d c o u l d be r e c l a i m e d i n t o paddy lands  T h i s means t h a t 3,164  the study a r e a .  resources  (Batang Tongar r i v e r ) , about  6,664 ha o r about 62% o f the study area c o u l d be p l a n t e d w i t h  in  i n the  additional  f a m i l i e s c o u l d be  I f the l a n d being s t u d i e d was  p r o j e c t , not o n l y would there be no a d d i t i o n a l  rice  and twice  accommodated  used f o r the o i l palm  f a m i l i e s which c o u l d  be  128  settled  t h e r e ; on  the  c o n t r a r y , at l e a s t o n e - t h i r d o f the e x i s t i n g  f a m i l i e s would be r e p l a c e d  The  28) 1  .  r e s u l t s o f the s o c i a l  s i z e o f l a n d f o r one  aspects  f a m i l y i n the  a n a l y s i s r e v e a l s t h a t the  study a r e a  maximum amount o f communal l a n d which can o n l y 2 ha based on W a l i n a g a r i s the WPDP's p r o p o s a l , with one 1 ha  f o r food  crops  and  area  Therefore,  i t seems t h a t  ignored  population  does n o t  appeal  to the  to the  the  r e a l i t i e s of  arable  the  farmers i n the  study to  imagine.  farmers would be able to l o s e t h e i r f e a r o f such a change  they would have to have very r e a l o f such a p r o j e c t .  evidence o f the  T h i s i s i n l i n e with  expressed i n t h e i r proverb: Mengambil  the  land.  because such a d r a s t i c change i s not w i t h i n t h e i r a b i l i t y  Before  the  f a m i l y c u l t i v a t i n g 4 ha o f o i l palm with  a housing l o t , has  palm c u l t i v a t i o n  ha and  be a l l o t t e d to a f a m i l y i s  questionnaires.  1  r e l a t i o n s h i p o f the a g r i c u l t u r a l  Oil  i s about 1.18  average  the  success  farmers' way  and  advantages  o f t h i n k i n g as  "Mengambil Tuah Kepada Yang Menang,  Contoh Kepada Yang Sudah".  T h i s means t h a t the  farmers would  j o i n a p r o j e c t or program o n l y a f t e r they have seen the p o s i t i v e r e s u l t s o f such a p r o j e c t o r program.  The are  28)  farmers f e e l  familar.  This  s a f e r growing r i c e and  other  crops  w i t h which  they  i s e x p r e s s e d i n t h e i r p r e f e r e n c e f o r government p r o j e c t s  With an o i l palm p r o j e c t the l a n d being s t u d i e d can f a c i l i t a t e o n l y about 2,138 f a m i l i e s (the s i z e o f the l a n d i s 10,690; each f a m i l y w i l l acquire 5 ha).  129  which would be l e s s agricultural  d i s r u p t i v e and more l i k e l y  system.  government p r o j e c t  to improve the  existing  I t seems an i r r i g a t i o n p r o j e c t i s the most d e s i r e d  f o r the study a r e a .  C o n s i d e r i n g the p o i n t s mentioned above, i t can be concluded l a n d under study i s s o c i a l l y  i n a p p r o p r i a t e f o r o i l palm growing.  s o c i a l l y more a p p r o p r i a t e f o r an e x t e n s i o n o f the e x i s t i n g system.  that  the  It i s  agricultural  Government e f f o r t s s h o u l d be d i r e c t e d to improving the e x i s t i n g  system,  r a t h e r than a t t e m p t i n g to c r e a t e a new  system  that i s s o c i a l l y  unsuitable.  A proper a n a l y s i s o f the economic aspect shows t h a t growing i s not more p r o f i t a b l e than more p r o f i t a b l e year.  growing  rice.  I t i s t r u e t h a t o i l palm i s  than r i c e per h e c t a r e i f the l a t t e r i s grown o n l y once a  By assuming t h a t o n l y one  income o f growing  rice  crop i s grown each y e a r , the net  o i l palm i s 123.0%, with  IPEDA tax, o f t h a t f o r r i c e  growing.  r i c e as u s u a l l y p r a c t i s e d by farmers  t a x , and 154.0%, w i t h o u t  IPEDA t a x , and 130%,  without  However, by assuming double  cropped  i n I n d o n e s i a , i f the water p r o v i s i o n  i s not a c o n s t r a i n t , the net income o f r i c e  The  o i l palm  growing  i s 163.0%, with  IPEDA t a x , o f t h a t f o r o i l palm  IPEDA  growing.  r e s u l t s o f t h i s study show t h a t the most p r o m i s i n g use o f the  l a n d and water r e s o u r c e s o f the area under study would be r i c e p r o d u c t i o n r a t h e r than o i l palm p r o d u c t i o n .  C e r t a i n l y , i f one  i s to meet the food  needs o f the people i n the study area i n p a r t i c u l a r , and i n West Pasaman in  g e n e r a l , and  to p r o v i d e a b e t t e r l i v i n g and  accommodate more  farmers  i n the study a r e a , i t i s deemed necessary to c o n s i d e r the a l t e r n a t e  use  130  o f the l a n d under study  for rice  production.  In c o n c l u s i o n some a t t e n t i o n must be given t o the methodological l i m i t a t i o n s o f the s t u d y .  I d e a l l y , i t would have been d e s i r a b l e t o  i n c l u d e a d i s c u s s i o n o f t h e p r o s p e c t i v e b e n e f i t s d e r i v i n g from o i l palm cultivation  f o r the o v e r a l l  Indonesian  argue t h a t the e x p o r t earnings be  utilized  economy.  a c c r u i n g from o i l palm c u l t i v a t i o n  f o r t h e purchase o f " o f f shore"  b e n e f i t other aspects  I t i s possible to  o f the economy.  t e c h n i c a l i n p u t s which c o u l d  But, i n view o f the f a c t t h a t the  p l a n , as i t was o r i g i n a l l y proposed, was designed investment  might  to maximize f o r e i g n  and e a r n i n g o p p o r t u n i t i e s i t appeared u n l i k e l y t h a t  these  types o f b e n e f i t s would be s u f f i c i e n t t o produce the r e s u l t s o u t l i n e d i n the p r e v i o u s sentence.  As a consequence t h i s a s p e c t was not  considered  S i m i l a r l y , the q u e s t i o n o f t h e minimum  necessary  i n any d e t a i l .  f o r the e f f e c t i v e o p e r a t i o n o f the o i l palm p r o j e c t was not  i n v e s t i g a t e d as a v a i l a b l e evidence  suggests  government-owned l a n d would be s u f f i c i e n t i n any e v a l u a t i v e study o f t h i s n a t u r e , comprehensive data on a l l a s p e c t s . broader  size  t h a t the 13,000 h e c t a r e s o f  f o r a viable operation.  i t is difficult  to provide  In f a c t , t h e t h e s i s attempts a much  e v a l u a t i o n than the e a r l i e r p l a n n i n g  proposal.  In r e l a t i n g the t h e s i s c o n c l u s i o n s to the e a r l i e r chapter on ment t h e o r y , three important  c o n c l u s i o n s emerge.  above", which i n v o l v e s heavy c a p i t a l  investment  F i r s t , "planning  Secondly,  developfrom  a t the c o s t o f the s o c i a l  needs o f an e x i s t i n g r e g i o n a l p o p u l a t i o n , poses r e a l development.  Clearly,  problems f o r r e g i o n a l  l a r g e p r o j e c t s such as t h i s need to be r e l a t e d to  a much wider range o f i n f o r m a t i o n which would a l l o w a more comprehensive  131  and i n t e g r a t e d r e g i o n a l  plan t o be developed.  F i n a l l y , planners must  be made more aware o f the importance o f the s i t e , and the s o c i a l and economic needs o f the e x i s t i n g p o p u l a t i o n i n e v a l u a t i n g data and presenting  proposals.  In the t e n years s i n c e the p r o p o s a l s were f i r s t made, the important changes  i n the "development  paradigm" have meant t h a t the p l a n n i n g  a u t h o r i t i e s o f d e v e l o p i n g c o u n t r i e s have become i n c r e a s i n g l y aware o f the need f o r i n t e g r a t e d r e g i o n a l  development and " p l a n n i n g from below".  In  a sense, t h i s study i s an e v a l u a t i o n o f a p l a n n i n g approach which i s now l a r g e l y outmoded.  As such, i t i s a c o n t r i b u t i o n  s t u d i e s which support the new development  to the growing body o f  paradigm.  132  APPENDIX 1  FARMERS'  Questionnaire  QUESTIONNAIRE  No.  Date o f I n t e r v i e w 1.  Interviewee  Code Number  1)  Address  2.  Interviewer  ;Name  Q01 . R e c e n t l y , the government has d e c i d e d Estate w i l l  t h a t the former Ophir  be reopened f o r o i l palm c u l t i v a t i o n .  O i l Palm  I t i s designed f o r  a Nucleus E s t a t e and S m a l l h o l d e r System (NES) which means t h a t the Nucleus E s t a t e p r o v i d e s a p r o c e s s i n g u n i t i n o r d e r to f a c i l i t a t e the surrounding  farmers  to process  t h e i r o i l palm f r u i t s .  What i s your  o p i n i o n about the government d e c i s i o n ?  a.  I t i s a good i d e a .  b.  Don't know.  c.  I t i s a bad i d e a .  ( I f the answer i s "Don't know", s k i p  Q02) ^ 2  1)  In o r d e r t o get more a c c u r a t e responses, the name o f the farmer was asked. I n s t e a d , a code number was used. For example, AG-| i s the f i r s t i n t e r v i e w e e i n Kanagarian A i r Gadang.  2)  Words i n p a r e n t h e s i s a r e not t o be t o l d t o t h e i n t e r v i e w e e , they a r e i n t e n d e d merely f o r t h e i n t e r v i e w e r ' s guidance.  133  Q02. Would you p l e a s e why  i t i s a bad  give me t h e r e a s o n ( s ) why  i t i s a good i d e a o r  idea?  Q03. Have you e v e r seen an o i l palm t r e e ?  a.  Yes.  b.  No.  ( I f the answer i s "No",  s k i p Q04).  Q04. Have you e v e r grown the o i l palm o r worked on an o i l palm p l a n t a t i o n ?  a.  Yes.  b.  No.  ( I f the answer i s "No",  skip  Q05).  Q05. Where d i d you grow the o i l palm o r work on an o i l palm p l a n t a t i o n ?  Q06  Do you want to t r y to grow the o i l palm on your farm f o r commercial purposes?  a.  Yes.  b.  No.  134  Q07.  I f you were given the o p p o r t u n i t y to p a r t i c i p a t e i n the Ophir O i l Palm P r o j e c t , would you j o i n  a.  Yes.  b.  No.  ( I f the answer i s "Yes", s k i p  Q08. Why  that  project?  Q08).  don't you want to j o i n t h a t  project?  a. b. c. d. e. f. g. h.  Q09.  In making the plan  f o r West Pasaman Development, the WPDP (German  e x p e r t s ) team recommended t h a t t h i s area be c u l t i v a t e d with o i l palm.  I f such a recommendation were implemented, a l l the l a n d ,  except the wetland you c u l t i v a t e would be devoted to o i l growing.  Would you agree to devote your l a n d to o i l  a.  Totally  agree.  b.  Have no i d e a .  c.  Totally  disagree.  ( I f the answer i s  " T o t a l l y agree", s k i p  Q010).  palm  palm c u l t i v a t i o n ?  135  Q10.  I t i s the government's i n t e n t i o n to i n c r e a s e the farmers' incomes i n this  kenagarian.  I f so, what k i n d o f p r o j e c t o r program  do you  t h i n k t h a t the government s h o u l d develop here to i n c r e a s e the farmers' incomes?  a. b. c. d. e. f.  Qll.  I f an i r r i g a t i o n  p r o j e c t were developed i n t h i s  l a n d you c u l t i v a t e or  Q12.  became i r r i g a b l e , would you be w i l l i n g  c o n v e r t y o u r l a n d to wetland r i c e  a.  I wi11.  b.  I don't know.  c.  I will  area and a l l the to devote  growing?  not.  I f an i r r i g a t i o n p r o j e c t were c o n s t r u c t e d here and a p a r t o f y o u r l a n d had to be passed by o r used f o r any k i n d o f c a n a l s (main, secondary o r t e r t i a r y for  c a n a l s ) , would you r e l e a s e i t o r would you ask  compensation?  a.  I will  r e l e a s e i t w i t h o u t a s k i n g f o r compensation.  b.  I will  ask f o r compensation.  136  Q13. Would you p l e a s e t e l l  a.  b.  paddy  t r e e crops  me the acreage o f l a n d you c u l t i v a t e f o r :  1.  wetland  paddy  ha  2.  r a i n f e d paddy  ha  3.  upland paddy  ha  1.  rubber  ha  2.  coconut  ha  3.  coffee  ha  4.  clove  ha  5. c.  ha  p a l a w i j a (secondary c r o p s ) and o t h e r s  Q14. I f you were able t o have access to more l a n d o f an i r r i g a t i o n p r o j e c t without u s i n g h i r e d  ha  (wetland) as a r e s u l t farm l a b o r e r s , how  many h e c t a r e s would you be a b l e to c u l t i v a t e ?  a.  w i t h d r a f t animal  ha  b.  w i t h o u t d r a f t animal  ha  THANK YOU VERY MUCH FOR YOUR INFORMATION'.  137  APPENDIX 2  WALINAGARIS'  Questionnaire  No.  :  Date o f Interview 1.  2.  :  Interviewee  Interviewer  Name  :  Address  :  Name  :  Q01. Would you please t e l l to tanah m i l i k  QUESTIONNAIRE  me the p r o p o r t i o n o f tanah  ( p r i v a t e land) i n t h i s  Q02. Is there any s p e c i a l  ulayat  (communal  land)  kenagarian?  procedure to o b t a i n a p i e c e o f communal  to be c u l t i v a t e d by a member o f t h e s o c i e t y i n t h i s  land  kenagarian?  Q03. What i s the maximum amount o f communal l a n d t h a t can be a l l o t t e d to one  f a m i l y and how l o n g can such l a n d be c u l t i v a t e d ?  Q04. Is there any o b l i g a t i o n (such as t r i b u t e ) o f the c u l t i v a t o r to the n i n i k mamak o r the community? hectare  I f there i s , how much, on a p e r  basis i s i t ?  Q05. Is there any p o s s i b i l i t y o f c o n v e r t i n g communal l a n d i n t o p r i v a t e l a n d (tanah  milik)?  cultivator  I f there i s , what k i n d o f procedure would the  follow?  138  Q06.  Is there  any o p p o r t u n i t y  resident of t h i s communal ( I f the  Q07.  f o r an o u t s i d e r or immigrant who  k e n a g a r i a n , to r e s i d e i n and  cultivate  i s not a the  land? anser i s "No",  skip  Is any  special distinction  access  to communal  land  Q07).  made between immigrants t r y i n g to  (based on  Minangkabau, Batak or Javanese)?  gain  t h e i r e t h n i c grouping such I f t h e r e i s , would you  as  explain  please?  Q08.  Recently,  the  government has  Ophir e s t a t e . Smallholder  I t has  tion will government  Q09.  which means t h a t the  the S m a l l h o l d e r s  work s i d e by s i d e .  who  former and runs  the  run the o i l palm c u l t i v a about  this  decision?  residents w i l l i n g l y j o i n  As a w a l i n a g a r i the  company who  What i s y o u r o p i n i o n  I f such a p r o j e c t were extended i n t h i s other  Q10.  to r e - e s t a b l i s h the  been designed f o r the Nucleus E s t a t e  System (NES)  Nucleus E s t a t e and  decided  that  k e n a g a r i a n , would you  project?  what k i n d o f p r o j e c t or program do you  government should  and  develop here i n o r d e r  think  to i n c r e a s e the  that farmers'  incomes? ( I f the  answer i s not  r e l a t e d to an  i r r i g a t i o n p r o j e c t , skip Q l l ) .  139  Q11. I f an i r r i g a t i o n communal  p r o j e c t were e s t a b l i s h e d here and a p a r t o f the  l a n d were r e q u i r e d  (main, secondary o r t e r t i a r y  f o r the d i f f e r e n t  irrigation  c a n a l s ) , would you r e l e a s e t h a t  f o r t h a t purpose and would you ask compensation  Q12. I f the i r r i g a t i o n communal  lands  p r o j e c t were c o n s t r u c t e d  became i r r i g a b l e  were not capable o f c u l t i v a t i n g welcome l o c a l for  the land?  or national  canals  for i t ?  here and a l l your  and a t the same time your a l l the i r r i g a b l e  transmigration  land  residents  l a n d , would you  without a s k i n g  compensation  140  BIBLIOGRAPHY  Adelman, Irma.  1975.  "Development Economics:  A Reassessment o f Goals"  The American Economic Review, XLV Adelman, I . , and C T . in  Developing  Ahmed, V. R.A.  1980.  Morris.  1973.  Countries.  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