Palm Oil is a fantastic plant for the people of Riau Province. It can be
seen from the rapid development of plantations, in 2001 palm oil
plantations covered an area of    1,119,798 ha and in 2010 it increased
to 1,925,341 ha with a growth of 36.02%. Palm oil plantation activities
brought economic impact on society, both for the people who are directly
involved with the activities of plantations and for their surrounding
community. To anticipate the rapid development, a model avoiding
inequality of income among farmers needs to be designed, especially for
self-supporting farmers in a partnership pattern. Institutional model
aims to increase the welfare of rural farmers in the form of Palm Oil
Based Agroestate (ABK). The concept of Palm oil Based Agroestate
collaborates between farmers, cooperatives, and business enterprises.
Through the ABK program, farmers will have an opportunity to buy/have
shares of the Palm oil Factory (PKS). There are two main business
activities of ABK model; first, business activities hat build palm oil
plantations and factories of the derivative industry; if necessary the
settlement of participating farmers will be established by the
developers; second, managing plantations and participating farmers-owned
factories as well as market the products carried out by a business
enterprise or a cooperative formed by the participant farmers.