Cost of Living Credit as a Stimulant Development of Society Palm Oil Plantation for Low Capital Farmer (Case Study in PT. Astra Agro Lestari Tbk., Borneo 1 Area)

COST OF LIVING CREDIT AS A STIMULANT DEVELOPMENT OF SOCIETY PALM OIL PLANTATION FOR LOW CAPITAL FARMER (Case Study in PT. Astra Agro Lestari Tbk., Borneo 1 Area) Authors: Wilson Daud, Darsono, Kusnandar, Sapja Anantanyu University of Sebelas Maret Surakarta Email: wilda1965@yahoo.com -------------------------------------------------------------------------------------------------------------------- The characteristic of the farmers? life is a different pattern of revenue, income and expenditure. The production received in every season, while expenditure should be every day, or even in an urgent time. The article aims to examine the practice of credit distribution of IGA PT. AAL B1, examine the advantages and disadvantages of credit distribution of IGA PT. AAL B1, and formulate an intensivity of stimulant of palm oil farm management for low capital farmers. The article used qualitative methods which supported by quantitative data through a case study approach in PT. AAL B1. The conclusion of the article shows that (1) credit distribute to the farmers of IGA without interest, cash and non-cash, in accordance with the needs of the plant, returned after the plant produces, price of fresh fruit bunches (TBS) set by the local government, credit distribution is stop if the plant produce the harvest; (2) advantages for the farmer are the farmer as an owner operator, credit ceiling is low, without interest, appropriate and well objective, applied directly; advantages for the company are to increase the processing capacity of the factory, could be distribute through the group, saved of distribution cost, effective supervision, reputation of the company is good; disadvantages for the farmers are the low cultivating intensivity, period of acceptance, farmers are not prepared in the provision of means production; disadvantages for the company are the less serious farmer manage farm, low productivity, poor credit repayment ability, members of farm group which are not harmonious; (3) credit which can stimulate the intensivity of palm oil farm management not only on land clearing, seeds, fertilizers, and pesticides, but add by Cost of Living (COL) credit. COL credit should be non-cash credit to meet the basic needs of the farmers for immature plants. Key wods: cost of living, palm oil, low capital