Abstract
Oil palm plantation has a negative impact on Global warming on particularly on peat land that is not suitable for agriculture. This survey focuses on two factors that change the source of income and economic condition of the local people in Central Kalimantan where peat land abounds, and the perception that oil palm plantation requires conversion of custom land where traditionally utilized by them. It also clarifies the impact of the establishment phase of oil palm plantations on employment and the local society. And, based on the results, we discuss desirable livelihood strategy for local people. Findings of the survey confirm that the main source of income for young households is oil palm plantations that engage them as labor while the older households' income come from managing small private rubber plantations. However, households engaged as labor in oil palm plantations also wished to own rubber plantations and were concerned about losing custom land that the oil palm plantation companies were buying. The local people are largely dependent on uncertain plantation labor for their livelihood, and as they do not have many alternative sources of income, it is necessary for them to lower any risk by retaining custom land, which is one of their important sources of income.
