Fertilization is the most important factor in maintenance of oil palm plantations, contributing almost 60 percent of plantation maintenance cost. This aspect of plantation is particularly difficult for independent small-scale cultivation. In general, smallholders have poor knowledge and skills relating to oil palm cultivation and face challenges in accessing quality fertilizer and high prices.

The paper, commissioned by Solidaridad Network, looks into current practices and challenges related to these issues. Three cases studies are presented to evaluate the fertilizer subsidy system from the government for smallholders in the field, its implementation on the ground, and why this program has had such mixed results. One of the main suggestions from the study is to increase efforts to establish and strengthen the group management of local community oil palm farmers.

The paper concludes by emphasizing the importance of fertilizer application to obtain maximum yielding oil palm results, and that smallholders need assistance from multiple stakeholders to fully benefit from this wonder crop. In the quest for low carbon, high yielding oil palm development in Indonesia, a failure to address some of the salient points and explanations about smallholder oil palm fertilizer challenges in this paper means that it will be increasingly difficult for Indonesia to reach its low emissions, pro-growth national government development outcomes.