Financial feasibility study of smallholder oil palm in Muaro Jambi District, Jambi

Abstract

Research objectives were to explain smallholder oil palm production expenditure, to explain annual rate of their profit, to explain feasibility smallholder oil palm farming financially in Muaro Jambi District, Jambi. Study was conducted in in 2017. 86 samples were selected by sampling method purposively. Primary and secondary data was needed in this research. Research operated the calculation of TC = FC + VC to explain first objective. While I = TR − TC method was operated to explain second objective. In order to analyze last objective, some methods were operated. Research found that rate of its expenditure was in average level. Its cost included operation cost, labor cost and other cost. Rate of its profit each hectare was IDR 19.118.532.-while its rate per household was IDR 25.412.602.-Therefore, it can be said that smallholder oil palm farming was feasible.

Regional Development, Rural Transformation, and Land Use/Cover Changes in a Fast-Growing Oil Palm Region: The Case of Jambi Province, Indonesia

“…Jambi Province ranked fourth in 2020 among provinces in Sumatra in terms of cultivation area of oil palm, at around 1.08 million hectares, and crude palm oil (CPO) production of approximately 2.55 million tons [73]. In Jambi, oil palm plantations are expanding due to both land suitability and financial feasibility [74][75][76]. Due to its high productivity, palm oil is currently one of the leading commodities in Jambi Province and has been recognized as a primary source of regional income [77].…”

“…Due to its high productivity, palm oil is currently one of the leading commodities in Jambi Province and has been recognized as a primary source of regional income [77]. It contributes considerably to regional GDP and generates substantial income for farmers as well as job opportunities for non-agricultural households [74][75][76]. Moreover, oil palm cultivation produces higher profits than other agricultural businesses, including rubber cultivation, in Jambi [74].…”

Hasil Produksi dan Kelayakan Usahatani Padi Varietas Unggul Baru pada Lahan Sawah Bukaaan Baru

“…Sedangkan data ekonomi yang dikumpulkan yaitubiaya yang dikeluarkan dan pendapatan yang diperoleh dalam usaha tani padi. Beberapa peneliti menggunakan revenue/total cost (R/C ratio) and benefit/total cost (π/C ratio) untuk menilai kelayakan usaha tani (Hidayat et al, 2015), (Mantende et al, 2017), (Martinez et al,, 2018), (OECD,, 2003), (Arya et al, 2020)- (Edison, 2020). (Hidayat et al, 2015), (Burhansyah et al, 2020).…”