摘要：Riau provincial government policies oriented to improving the welfare of oil palm growers should be based on factors that affect the condition of the plantation area. Factors that cause the welfare of smallholders may be characteristic of the region, social values contained in communities, households, and individuals (World Bank, 2002). Besides that policies adopted by governments can be precisely targeted, local governments are expected to able to see palm farmer welfare problems in terms of areal. This study aimed to describe the characteristics of the region and the influence of social capital on the welfare of farmers, especially in oil palm. The method used consisted of Analysis of Structural Equation Models (SEM) to explain the influence of regional characteristics and social capital in the welfare of smallholders in Libo Jaya in subdistrict Kandis.The final results of this study explains that the variable character of the area plantations significantly affect the welfare of smallholders in Libob Jaya subdistrict Kandis. Variables that affect the character of the area plantations of oil palm farmers' welfare, ie, fixed income, jobs, damage to the environment, market access, the land held and the number of family members. The results of the analysis of the linkages between capital with well-being, namely: (1). the coefficient of direct influence Variable norm (X1) to Variable welfare (Y1) of 0.408 and is positive and significant shows that the shape of the influence of variable norm of the variable being is directly proportional (positive) and significant, which means that the increase factor variable norms will impact significantly to improving the welfare of variable factors, (2). the coefficient of direct influence Variable network (X2) on the variable being (Y1) of 0.638 and is positive and significant shows that the form of influencing variables for networks with variable prosperity is directly proportional (positive) and significant, which means that the increase factor variable network will have a significant impact variable factors to increased welfare and (3). the coefficient of direct influence Variable trust (X3) on Variable welfare (Y1) of 0.621 and is positive and significant shows that the form of influencing variables of confidence in the Variable prosperity is directly proportional (positive) and significant, which means that the increase factor variable trust will have a significant impact to improving the welfare of variable factors.
关键词：Regional characteristics; Social Capital and Welfare Oil Palm Smallholders
