Letters in Economic Research Updates
The Effectiveness of Intercropping Upland Rice in Oil Palm Plantation: A Review on Prospects and Challenges
Abstract
Loso Judijanto
This qualitative literature review critically examines the effectiveness, prospects, and challenges of intercropping upland rice within oil palm plantations, focusing on its potential to enhance sustainability, productivity, and smallholder livelihoods in tropical regions. Synthesizing findings from peer-reviewed literature and empirical studies, the review highlights that intercropping upland rice with oil palm can significantly improve land use efficiency, soil fertility, biodiversity, and pest management while contributing to carbon sequestration and climate resilience. Economic analyses reveal that this system diversifies farmer income and strengthens food security, particularly for smallholders. However, successful implementation is constrained by resource competition, increased labor requirements, limited technical knowledge, and market access barriers. The review underscores the importance of appropriate crop selection, effective agronomic management, and supportive policy frameworks to optimize outcomes. It calls for further research on crop compatibility, long-term soil health, and economic viability, as well as policy interventions to facilitate technology adoption and market integration. The study concludes that while upland rice-oil palm intercropping holds substantial promise for sustainable agriculture and rural development, its widespread adoption depends on overcoming technical, economic, and institutional challenges through integrated research, extension, and policy support.

