Trust and Ethics in the Social Network of Oil Palm Traders: Lessons From Indonesia

Abstract

Oil palm trade from independent oil palm farmers in Barito Kuala Regency, Kalimantan is carried out in a palm oil trading chain and involves a social network of oil palm traders. However, unlike most networks social are relatively established, social networks in the palm oil trade are loose and negotiated. This study aims to: first, describe the form of social networks in oil palm trading. Second, it describes efforts to establish and maintain networks social in the oil palm trade. This study uses qualitative research methods to gain a deep understanding of the social networks of oil palm traders. This research was conducted in the village of Sidomulyo, Wanaraya sub-district Barito Kuala District, South Kalimantan province. Informants as sources of information were selected using a purposive sampling technique. Data mining was carried out by observation, in-depth (ininterviews depth interviews) with selected informants, and daily notes. The research results were analyzed by phenomenological analysis. This study found: first, the form of social networks in oil palm traders consists of two forms of social networks, namely the social network of negotiating interests in the relationship that is built between vendors SPK and middlemen and contractual emotional social networks between middlemen and oil palm farmers. Secondly, efforts to maintain social networks are carried out in a number of ways: (1) Negotiating interests for social networks are carried out by maintaining trust through timely payment and delivery of goods and willingness to act as a vendor agent as a concession to the vendor's willingness to deposit a middleman. (2) the contractual emotional network is carried out with the middlemen's willingness to lend funds for plantation management to farmers and the willingness of farmers to sell their oil palm to middlemen as a form of gratitude and “ewuh pakewuh” ethics for their loans.