Farm Profitability and Resource Use in Rubber and Oil Palm Smallholders of Batang Hari, Jambi, Indonesia.
FARM PROFITABILITY AND RESOURCE USE IN RUBBER
AND OIL PALM SMALLHOLDERS OF BATANG HARI,
JAMBI, INDONESIA
TRIANA GITA DEWI
GRADUATE SCHOOL
BOGOR AGRICULTURAL UNIVERSITY
BOGOR
2014
DECLARATION
I, Triana Gita Dewi, hereby declare that the thesis entitled Farm
Profitability and Resource Use in Rubber and Oil Palm Smallholders of Batang
Hari, Jambi, Indonesia submitted to fulfill a requirement for the award of Master
of Science in Agribusiness from Bogor Agricultural University is my own piece
work produced through the guidance of my academic advisor and to the nest of
my knowledge. It has not been submitted for the award of any degree in other
academic institutions. This thesis does not contain any piece of work of the
person, except those are acknowledged and referenced in the text.
I hereby assign the copyright of my thesis to Bogor Agricultural
University.
Bogor, Oktober 2014
Triana Gita Dewi
H451110091
RINGKASAN
TRIANA GITA DEWI. Keuntungan Usahatani dan Penggunaan Sumberdaya
pada Petani Karet dan Kelapa Sawit di Batanghari, Jambi, Indonesia. Dibimbing
oleh RITA NURMALINA, AMZUL RIFIN, MATIN QAIM, dan VIJESH
KRISHNA.
Fenomena perubahan penggunaan lahan semakin menjadi perhatian karena
selalu dikaitkan dengan kegiatan penebangan hutan. Karet dan kelapa sawit adalah
beberapa tanaman utama yang bertanggung jawab atas perubahan ini. Komoditas
ini adalah komoditas yang sangat berkembang di Indonesia. Namun, peningkatan
kebutuhan lahan untuk produksi karet dan kelapa sawit yang mengarah pada
ekstensifikasi pertanian menjadi salah satu alasan perubahan penggunaan lahan.
Provinsi Jambi merupakan salah satu sentra produksi karet dan kelapa sawit
di Indonesia. Berdasarkan produksi, Kabupaten Batanghari menjadi salah satu
sentra produksi karet dan kelapa sawit. Kelangkaan lahan di Jambi menyebabkan
petani kecil karet dan kelapa sawit harus menggunakan lahan yang tidak produktif
atau bersaing satu sama lain untuk mendapatkan lebih banyak lahan. Insentif
moneter merupakan faktor yang dapat mempengaruhi arah perubahan penggunaan
lahan. Oleh karena itu, dalam untuk mengetahui arah perubahan penggunaan
lahan di masa depan, diperlukan analisis profitabilitas karet dan kelapa sawit pada
petani kecil. Selain itu, faktor-faktor yang menentukan produksi karet dan kelapa
sawit di Batanghari juga perlu dianalisis. Melalui peningkatan produksi, petani
dapat meningkatkan keuntungan dari usahatani mereka.
Berdasarkan perumusan masalah, tujuan penelitian ini antara lain (1)
menganalisis karakteristik usahatani serta petani karet dan kelapa sawit di
Batanghari, Jambi, (2) menghitung dan membandingkan laba yang dihasilkan dari
usahatani karet dan kelapa sawit (3) menganalisis faktor penentu produksi karet
dan kelapa sawit. Perbandingan karakteristik petani dianalisis secara deskriptif.
Penjelasan profitabilitas usahatani karet dan kelapa sawit dihitung dengan Net
Present Value (NPV), Internal Rate of Return (IRR) dan Gross Benefit Ratio
(gross B/C). Analisis faktor-faktor yang menentukan produksi karet dan kelapa
sawit dilakukan dengan menggunakan fungsi double log. Metode OLS juga
digunakan untuk membangun jenis fungsi ini.
Hasil penelitian menunjukkan bahwa karakteristik usahatani karet dan kelapa
sawit seperti area produksi dan usia perkebunan tidak berbeda nyata sementara
semua karakteristik petani karet dan kelapa sawit seperti usia petani, pendidikan
petani dan jumlah anggota keluarga yang terlibat dalam usahatani secara
signifikan berbeda. Para petani kelapa sawit lebih tua dari petani karet. Dalam hal
pendidikan, petani kelapa sawit juga menghabiskan lebih banyak waktu untuk
pendidikan formal daripada petani karet. Dalam usahatani karet, anggota keluarga
yang terlibat dalam usahatani yang lebih banyak dibandingkan dengan anggota
keluarga yang terlibat dalam usahatani kelapa sawit. Sebenarnya, sebagian besar
masyarakat di Jambi beretnis Melayu, namun data menunjukkan bahwa sebagian
besar petani kedua komoditas bertenis Jawa. Kondisi ini juga dapat dilihat dari
data petani di Batanghari dimana 66 persen petani karet merupakan non-imigran,
sedangkan 90 persen petani kelapa sawit merupakan imigran. Beberapa program
transmigrasi juga menyediakan fasilitas pertanian. Hal ini menyebabkan petani
kelapa sawit lebih banyak memiliki sertifikat kepemilikan lahan dibandingkan
dengan petani karet.
Dari sisi input, usahatani karet memerlukan lebih banyak urea dibandingan
dengan NPK, sedangkan usahatani kelapa sawit menggunakan lebih banyak NPK
dari pada Urea. Hal ini disebabkan karena adanya perbedaan nutrisi yang
dibutuhkan oleh pohon karet dan kelapa sawit. Biaya tenaga kerja adalah biaya
variabel terbesar dalam budidaya karet dan kelapa sawit. Dilihat dari jumlah ratarata per tahun, biaya tenaga kerja usahatani karet lebih tinggi dibandingkan
dengan biaya tenaga kerja usahatani kelapa sawit. Berdasarkan analisis keuangan
seperti NPV, IRR dan gross B/C, usahatani kelapa sawit lebih menguntungkan
daripada usahatani karet. Dengan demikian, lahan yang tidak produktif akan lebih
banyak digunakan untuk pengembangan usahatani kelapa sawit dibandingkan
untuk pengembangan usahatani karet, bahkan konversi lahan pertanian akan
terjadi dari lahan karet menjadi lahan kelapa sawit.
Berdasarkan fungsi double log yang dihitung dengan menggunakan metode
OLS, terdapat 2 faktor penentu produksi karet yaitu area produksi dan tenaga
kerja yang digunakan. Elastisitas masing-masing variabel adalah 0,582 dan 0,377.
Berbeda dengan fungsi sebelumnya, produksi kelapa sawit dipengaruhi oleh area
produksi, urea, NPK dan herbisida dimana elastisitas masing-masing variabel
adalah 1.019, 0.084, 0,107 dan -0,207. Meskipun usahatani karet kurang
menguntungkan dibandingkan dengan usahatani kelapa sawit, produksi karet
dapat ditingkatkan dengan mempertimbangkan beberapa faktor yang
mempengaruhi produksi. Untuk mencegah eksploitasi penggunaan lahan yang
dapat menyebabkan deforestasi, pengembangan kelapa sawit harus difokuskan
pada intensifikasi daripada ekstensifikasi.
Kata kunci: karet, kelapa sawit, keuntungan, petani rakyat
SUMMARY
TRIANA GITA DEWI. Farm Profitability and Resource Use in Rubber and Oil
Palm Smallholders of Batanghari, Jambi, Indonesia. Supervised by RITA
NURMALINA, AMZUL RIFIN, MATIN QAIM, and VIJESH KRISHNA.
Land use change phenomena are getting more attention since it is always
associated with deforestation. Rubber and oil palm are major crop responsible for
these changes. These commodities are two of some commodities which have been
developing in Indonesia. However, an increase in land requirement for rubber and
oil palm production lead to the agricultural extensification, one of land use change
reasons.
Jambi province was classified as one of production center of rubber and oil
palm in Indonesia. Based on production, Batang Hari regency became one of
rubber and oil palm production center. Land scarcity in Jambi leads rubber and oil
palm smallholders to use unproductive lands or compete one another to get more
land. The monetary incentive is the most influencing factor which can determine
the direction of land use changes. Therefore, in order to discover the direction of
land use change in the future, it is required to analyze the profit of rubber and oil
palm smallholders. Factors determining rubber and oil palm production in Batang
Hari, Jambi are also needed to be analyzed. Through improving production,
farmers can increase production and profit of their farms without extending
production area.
Based on problem statement, objectives of this research are (1) to analyze the
characteristics of rubber and oil palm farms and farmers in Batang Hari, Jambi,
(2) to compute and compare the profit generated from rubber and oil palm farms
and (3) to analyze factors determining rubber and oil palm production. This
research was conducted by using some processing data techniques. Comparisons
of farmer characteristics were analyzed descriptively. Profitability explanations of
rubber and oil palm farms were calculated by Net Present Value (NPV), Internal
Rate of Return (IRR) and Gross Benefit Ratio (gross B/C). In order to analyze
factors determining rubber and oil palm production, double log functions were
applied. OLS method was used for constructing these kinds of function.
The result showed that the characteristics of rubber and oil palm farms such
as production area and plantation age were not significantly different while all
characteristics of rubber and oil palm farms such as farmer age, farmer education
and number of household involved in agriculture were significantly different. The
oil palm farmers were older than rubber farmers. In terms of education, oil palm
farmers also spent more time for formal education than rubber farmers. In rubber
farms, family members involved in agriculture were more than that in oil palm
farms. Originally, the majority of indigenous people in Jambi were Malay which
also became an indigenous in almost all provinces in Sumatera Island.
Unexpectedly, the data showed that the majority of the farmers of both
commodities were Javanese people. Beside Javanese people, most of rubber
farmers were Malay people. This condition could also be seen from the data of
farmers in Batang Hari. Sixty six percent of the rubber farmers were indigenous or
non-immigrant from other regions, while 90 percent of oil palm were immigrant
farmers. Regarding the issue of transmigration, some programs provided
agricultural facilities to support the transmigrant. It caused the certification hold
by oil palm farmer was higher than the certification hold by rubber farmer.
In input side, rubber farms required more urea than NPK, while palm oil
farms took more NPK than Urea. It was caused by the differences of nutrient
needed by rubber and oil palm trees. Labor costs were the largest variable cost in
rubber and oil palm cultivation. Seen from the average per year, labor costs of
rubber farms was higher than that of oil palm farms. Based on the financial
analysis such as NPV, IRR and gross B/C, oil palm farms were more profitable
than rubber farms. Unproductive land would be more widely used for the
development of oil palm farms than for the development of rubber farms, even the
conversion of agricultural land would occur from rubber to oil palm farms.
Regarding double log function calculated by OLS method, 2 factors
determining rubber production were production area and labor used. The elasticity
of each variable was 0.582 and 0.377, respectively. Different with previous
function, oil palm production was influenced by production area, urea, NPK and
herbicide where their elasticities were 1.019, 0.084, 0.107 and -0.207,
respectively. Although rubber farms were less profitable than oil palm farms,
Rubber production could be improved by considering some factors influencing
production. In order to prevent the land use exploitation that could cause
deforestation, the development of oil palm should be focused on intensification
rather than extensification.
Keyword: oil palm, profitability, rubber, smallholders
© Bogor Agricultural University Right Reserved, 2014
Copyright Reserved
Prohibited to cite a part of or entire of this thesis without inclusion or mentioning
the source. The citation is only for academic, research, scientific writing,
reporting, criticism writing or a problem reviewing and the citation does not
inflict a financial loss in the proper interest of Bogor Agricultural University.
Prohibited to announce and reproduced in any form or by any means without
written permission from Bogor Agricultural University.
FARM PROFITABILITY AND RESOURCE USE IN RUBBER
AND OIL PALM SMALLHOLDERS OF BATANG HARI,
JAMBI, INDONESIA
TRIANA GITA DEWI
A thesis
Submitted to the Graduate School in Partial Fulfillment of the Requirement
for Master of Science Degree
in
Study Program of Agribusiness
GRADUATE SCHOOL
BOGOR AGRICULTURAL UNIVERSITY
BOGOR
2014
External Examiner
: Dr. Ir. Netti Tinaprilla, MM
Thesis Tittle
Name
Registration Number
: Farm Profitability and Resource Use in Rubber and Oil
Palm Smallholders of Batang Hari, Jambi, Indonesia.
: Triana Gita Dewi
: H451110091
Approved by
Advisory Committee,
Prof. Dr. Ir. Rita Nurmalina, MS
Chairman
Dr. Amzul Rifin, MA
Member
Prof. Matin Qaim
Member
Dr. Vijesh Krishna
Member
Agreed by
Coordinator of Major Agribusiness
Dean of Graduate School
Prof. Dr. Ir. Rita Nurmalina, MS
Dr. Ir. Dahrul Syah, MscAgr
Examination Date:
Submission Date:
ACKNOWLEDGMENT
All praise to Allah who the most precious and the most merciful for His
blessing and guidance to finish this thesis. The theme of this research which was
started on June 2013 is profitability and resource use in smallholder farming.This
research is my piece of work but it would have been impossible without support
many people. Hence, I would like to appreciate everything they have given to me.
First of all, I am indebted to my families who always give me love, advice,
and support which always encourage me to learn and appreciate my life. I
dedicate this thesis to my beloved parent.
I would acknowledge to my supervisor from Bogor Agricultural
University, Prof. Dr. Ir. Rita Nurmalina, MS and Dr. Amzul Rifin, SP, MA for
their support academically and mentally in thesis writing from the beginning until
the last step. I would like also to thank to my supervisor from Georg-August
University of Goettingen, Prof. Matin Qaim and Dr. Vijesh Krishna for their
insight and valuable comment to my thesis.
My sincere thank further to the Collaborative Research Center (CRC),
Georg-August University of Göttingen, especially for CRC team leading by Prof.
Matin Qaim for providing valuable data that I used for this thesis. I would like
also to thank to Dr. Ir. Supijatno, M.Si who give me data and information related
to commodities used in this thesis.
My gratitude is also given to Indonesian Planning and Cooperation of
Foreign Affairs (BPKLN) and Directorate General of Higher Education (DIKTI)
which always provide scholarship for my entire graduate school period. This
research was also conducted well due to the research financial support of them.
Bogor, Oktober 2014
Triana Gita Dewi
TABLE OF CONTENTS
LIST OF TABLES
xvi
LIST OF FIGURES
xvi
LIST OF APPENDIXES
xvii
1 INTRODUCTION
Background
Problem Statement
Research Objectives
Research Benefits
Research Scope
1
1
4
5
5
6
2 LITERATURE REVIEW
Land Use Changes across The World
Land Use Changes in Indonesia
Planting System of Rubber and Oil Palm
Input Use
Profitability of Rubber and Oil Palm Smallholders
Factors Determining Rubber and Oil Palm Production
6
6
7
8
8
9
10
3 RESEARCH FRAMEWORK
Theoretical Framework
Profitability
Cost and Benefit
Production Function
Production Factors
Operational Framework
Hypothesis
11
11
11
12
13
17
18
20
4 RESEARCH METHOD
Types and Sources of Data
Data Processing Techniques
T Test for Descriptive Analysis
Profitability
Double Log Function
Basic assumptions
20
20
21
22
23
27
31
5 THE CHARACTERISTICS OF RUBBER AND OIL PALM
SMALLHOLDERS
Farm Characteristics
Farmer Characteristics
31
31
33
6 PROFITABILITY ANALYSIS OF RUBBER AND OIL PALM
SMALLHOLDERS
Cash Flow Projection
Inflow Projection
Outflow Projection
Profit Analysis
35
35
35
37
39
Profit Analysis of Rubber Smallholders
Profit Analysis of Oil Palm Smallholders
7 FACTORS DETERMINING PRODUCTION OF RUBBER AND OIL
PALM FARMS
Production Function of Rubber
Classic Assumption Test of Rubber Production Function
Model Significance Test and Goodness of Fit of Rubber
Production Function
Factors Determining Rubber Production
Production Function of Oil Palm
Classical Assumption Test of Oil Palm Production Function
Model Significance Test and Goodness of Fit of Oil Palm
Production Function
Factors Determining Oil Palm Production
8 CONCLUSIONS AND RECOMMENDATIONS
Conclusions
Recommendations
40
41
42
42
42
44
45
48
48
50
50
55
55
55
REFERENCES
56
APPENDIX
62
AUTOBIOGRAPHY
81
xvi
LIST OF TABLES
1 Land use in 5 district in jambi province (ha)
3
2 Production area of rubber and oil palm farms in batang hari, jambi
5
(2000-2011)
3 Cashflow components
24
4 Variable explanation
28
5 Alternatives for t test
30
6 Farm characteristic comparisons
33
7 Farmer characteristic comparisons
34
8 Model estimation result of factors determining rubber production
43
9 Hypothesis test summary of kolgomorov-smirnov test for rubber
44
double log function
10 ANOVA of regression model for glejser test of rubber double log 44
function
11 Model estimation result of factors determining oil palm production
49
12 Hypothesis test summary of kolgomorov-smirnov test for oil palm
50
double log function
13 ANOVA of regression model for glejser test of oil palm double log
50
function
LIST OF FIGURES
1 Production area of rubber and oil palm smallholders in indonesia (000
ha)
2 Bokar and palm oil production in indonesia (000 ton)
3 Rubber and oil palm production each Regency in Jambi Province
4 The fixed, variable and total cost curves
5 Neoclassical Three-Stage Production Function
6 TVP, TFC, VMP. MFC and Profit
7 Operational framework
8 Business period
9 Percentage of farms based on production area
10 Percentage of farms based on plantation age
11 Ethnicity of rubber and oil palm farmers
12 Migration
13 Land certification ownership of rubber and oil palm farmers
14 Rubber and oil palm trees production per ha per year
15 Variable cost of rubber and oil palm smallholders
16 Bokar price data in 2012
17 Fresh fruit bunches price data in 2012
18 Error distributed histogram of rubber double log function
19 Error distributed histogram of oil palm double log function
1
2
3
13
14
16
19
23
32
32
34
34
35
36
39
40
41
43
49
xvii
LIST OF APPENDIXES
1
2
3
4
5
6
7
8
Production center of rubber in Indonesia
Production center of oil palm in Indonesia
Investment cost of rubber farms per Ha in Batanghari Regency
Investment cost of oil palm farms per Ha in Batanghari Regency
Cash flow of rubber farm per Ha in Batanghari Regency (total labor)
Cash flow of oil palm farm per Ha in Batanghari Regency (total labor)
Cash flow of rubber farm per Ha in Batanghari Regency (hired labor)
Cash flow of oil palm farm per Ha in Batanghari Regency (hired labor)
62
62
63
64
65
69
73
77
1 INTRODUCTION
Background
000 Ha
Land use change phenomena are getting more attention since it is always
associated with deforestation. Deforestation mostly occurred in Sumatera, one of
the largest islands in Indonesia. It was mainly caused by the wide land required. In
Indonesia, loggers, smallholders, and estate crops were the main driving actors of
deforestation (Pagiola S 2000). In 1995, logging gave a high incentive for loggers
to export timber because of low fee charged by the government. In smallholder
side, many of agricultural land use alternatives let smallholder to use forest more
than before, which could be found as jungle rubber or rubber monoculture. In
comparison to smallholder farming, plantation estates have a larger role in
determining the land use changes, where oil palm is often cited as a major crop
responsible for these changes. However, the high incentive of this commodity
attracted many smallholders to built their farms and become a threat to the forest.
The land use of plantations is conducted by the two parties, ie companies that
have large plantation and smallholders which have smaller scale plantation. The
large plantation estates usually have a legal entity. They are also use a very wide
production area (> 10 ha) and capital intensive. In contrast, smallholder
plantations are established in a small area (
AND OIL PALM SMALLHOLDERS OF BATANG HARI,
JAMBI, INDONESIA
TRIANA GITA DEWI
GRADUATE SCHOOL
BOGOR AGRICULTURAL UNIVERSITY
BOGOR
2014
DECLARATION
I, Triana Gita Dewi, hereby declare that the thesis entitled Farm
Profitability and Resource Use in Rubber and Oil Palm Smallholders of Batang
Hari, Jambi, Indonesia submitted to fulfill a requirement for the award of Master
of Science in Agribusiness from Bogor Agricultural University is my own piece
work produced through the guidance of my academic advisor and to the nest of
my knowledge. It has not been submitted for the award of any degree in other
academic institutions. This thesis does not contain any piece of work of the
person, except those are acknowledged and referenced in the text.
I hereby assign the copyright of my thesis to Bogor Agricultural
University.
Bogor, Oktober 2014
Triana Gita Dewi
H451110091
RINGKASAN
TRIANA GITA DEWI. Keuntungan Usahatani dan Penggunaan Sumberdaya
pada Petani Karet dan Kelapa Sawit di Batanghari, Jambi, Indonesia. Dibimbing
oleh RITA NURMALINA, AMZUL RIFIN, MATIN QAIM, dan VIJESH
KRISHNA.
Fenomena perubahan penggunaan lahan semakin menjadi perhatian karena
selalu dikaitkan dengan kegiatan penebangan hutan. Karet dan kelapa sawit adalah
beberapa tanaman utama yang bertanggung jawab atas perubahan ini. Komoditas
ini adalah komoditas yang sangat berkembang di Indonesia. Namun, peningkatan
kebutuhan lahan untuk produksi karet dan kelapa sawit yang mengarah pada
ekstensifikasi pertanian menjadi salah satu alasan perubahan penggunaan lahan.
Provinsi Jambi merupakan salah satu sentra produksi karet dan kelapa sawit
di Indonesia. Berdasarkan produksi, Kabupaten Batanghari menjadi salah satu
sentra produksi karet dan kelapa sawit. Kelangkaan lahan di Jambi menyebabkan
petani kecil karet dan kelapa sawit harus menggunakan lahan yang tidak produktif
atau bersaing satu sama lain untuk mendapatkan lebih banyak lahan. Insentif
moneter merupakan faktor yang dapat mempengaruhi arah perubahan penggunaan
lahan. Oleh karena itu, dalam untuk mengetahui arah perubahan penggunaan
lahan di masa depan, diperlukan analisis profitabilitas karet dan kelapa sawit pada
petani kecil. Selain itu, faktor-faktor yang menentukan produksi karet dan kelapa
sawit di Batanghari juga perlu dianalisis. Melalui peningkatan produksi, petani
dapat meningkatkan keuntungan dari usahatani mereka.
Berdasarkan perumusan masalah, tujuan penelitian ini antara lain (1)
menganalisis karakteristik usahatani serta petani karet dan kelapa sawit di
Batanghari, Jambi, (2) menghitung dan membandingkan laba yang dihasilkan dari
usahatani karet dan kelapa sawit (3) menganalisis faktor penentu produksi karet
dan kelapa sawit. Perbandingan karakteristik petani dianalisis secara deskriptif.
Penjelasan profitabilitas usahatani karet dan kelapa sawit dihitung dengan Net
Present Value (NPV), Internal Rate of Return (IRR) dan Gross Benefit Ratio
(gross B/C). Analisis faktor-faktor yang menentukan produksi karet dan kelapa
sawit dilakukan dengan menggunakan fungsi double log. Metode OLS juga
digunakan untuk membangun jenis fungsi ini.
Hasil penelitian menunjukkan bahwa karakteristik usahatani karet dan kelapa
sawit seperti area produksi dan usia perkebunan tidak berbeda nyata sementara
semua karakteristik petani karet dan kelapa sawit seperti usia petani, pendidikan
petani dan jumlah anggota keluarga yang terlibat dalam usahatani secara
signifikan berbeda. Para petani kelapa sawit lebih tua dari petani karet. Dalam hal
pendidikan, petani kelapa sawit juga menghabiskan lebih banyak waktu untuk
pendidikan formal daripada petani karet. Dalam usahatani karet, anggota keluarga
yang terlibat dalam usahatani yang lebih banyak dibandingkan dengan anggota
keluarga yang terlibat dalam usahatani kelapa sawit. Sebenarnya, sebagian besar
masyarakat di Jambi beretnis Melayu, namun data menunjukkan bahwa sebagian
besar petani kedua komoditas bertenis Jawa. Kondisi ini juga dapat dilihat dari
data petani di Batanghari dimana 66 persen petani karet merupakan non-imigran,
sedangkan 90 persen petani kelapa sawit merupakan imigran. Beberapa program
transmigrasi juga menyediakan fasilitas pertanian. Hal ini menyebabkan petani
kelapa sawit lebih banyak memiliki sertifikat kepemilikan lahan dibandingkan
dengan petani karet.
Dari sisi input, usahatani karet memerlukan lebih banyak urea dibandingan
dengan NPK, sedangkan usahatani kelapa sawit menggunakan lebih banyak NPK
dari pada Urea. Hal ini disebabkan karena adanya perbedaan nutrisi yang
dibutuhkan oleh pohon karet dan kelapa sawit. Biaya tenaga kerja adalah biaya
variabel terbesar dalam budidaya karet dan kelapa sawit. Dilihat dari jumlah ratarata per tahun, biaya tenaga kerja usahatani karet lebih tinggi dibandingkan
dengan biaya tenaga kerja usahatani kelapa sawit. Berdasarkan analisis keuangan
seperti NPV, IRR dan gross B/C, usahatani kelapa sawit lebih menguntungkan
daripada usahatani karet. Dengan demikian, lahan yang tidak produktif akan lebih
banyak digunakan untuk pengembangan usahatani kelapa sawit dibandingkan
untuk pengembangan usahatani karet, bahkan konversi lahan pertanian akan
terjadi dari lahan karet menjadi lahan kelapa sawit.
Berdasarkan fungsi double log yang dihitung dengan menggunakan metode
OLS, terdapat 2 faktor penentu produksi karet yaitu area produksi dan tenaga
kerja yang digunakan. Elastisitas masing-masing variabel adalah 0,582 dan 0,377.
Berbeda dengan fungsi sebelumnya, produksi kelapa sawit dipengaruhi oleh area
produksi, urea, NPK dan herbisida dimana elastisitas masing-masing variabel
adalah 1.019, 0.084, 0,107 dan -0,207. Meskipun usahatani karet kurang
menguntungkan dibandingkan dengan usahatani kelapa sawit, produksi karet
dapat ditingkatkan dengan mempertimbangkan beberapa faktor yang
mempengaruhi produksi. Untuk mencegah eksploitasi penggunaan lahan yang
dapat menyebabkan deforestasi, pengembangan kelapa sawit harus difokuskan
pada intensifikasi daripada ekstensifikasi.
Kata kunci: karet, kelapa sawit, keuntungan, petani rakyat
SUMMARY
TRIANA GITA DEWI. Farm Profitability and Resource Use in Rubber and Oil
Palm Smallholders of Batanghari, Jambi, Indonesia. Supervised by RITA
NURMALINA, AMZUL RIFIN, MATIN QAIM, and VIJESH KRISHNA.
Land use change phenomena are getting more attention since it is always
associated with deforestation. Rubber and oil palm are major crop responsible for
these changes. These commodities are two of some commodities which have been
developing in Indonesia. However, an increase in land requirement for rubber and
oil palm production lead to the agricultural extensification, one of land use change
reasons.
Jambi province was classified as one of production center of rubber and oil
palm in Indonesia. Based on production, Batang Hari regency became one of
rubber and oil palm production center. Land scarcity in Jambi leads rubber and oil
palm smallholders to use unproductive lands or compete one another to get more
land. The monetary incentive is the most influencing factor which can determine
the direction of land use changes. Therefore, in order to discover the direction of
land use change in the future, it is required to analyze the profit of rubber and oil
palm smallholders. Factors determining rubber and oil palm production in Batang
Hari, Jambi are also needed to be analyzed. Through improving production,
farmers can increase production and profit of their farms without extending
production area.
Based on problem statement, objectives of this research are (1) to analyze the
characteristics of rubber and oil palm farms and farmers in Batang Hari, Jambi,
(2) to compute and compare the profit generated from rubber and oil palm farms
and (3) to analyze factors determining rubber and oil palm production. This
research was conducted by using some processing data techniques. Comparisons
of farmer characteristics were analyzed descriptively. Profitability explanations of
rubber and oil palm farms were calculated by Net Present Value (NPV), Internal
Rate of Return (IRR) and Gross Benefit Ratio (gross B/C). In order to analyze
factors determining rubber and oil palm production, double log functions were
applied. OLS method was used for constructing these kinds of function.
The result showed that the characteristics of rubber and oil palm farms such
as production area and plantation age were not significantly different while all
characteristics of rubber and oil palm farms such as farmer age, farmer education
and number of household involved in agriculture were significantly different. The
oil palm farmers were older than rubber farmers. In terms of education, oil palm
farmers also spent more time for formal education than rubber farmers. In rubber
farms, family members involved in agriculture were more than that in oil palm
farms. Originally, the majority of indigenous people in Jambi were Malay which
also became an indigenous in almost all provinces in Sumatera Island.
Unexpectedly, the data showed that the majority of the farmers of both
commodities were Javanese people. Beside Javanese people, most of rubber
farmers were Malay people. This condition could also be seen from the data of
farmers in Batang Hari. Sixty six percent of the rubber farmers were indigenous or
non-immigrant from other regions, while 90 percent of oil palm were immigrant
farmers. Regarding the issue of transmigration, some programs provided
agricultural facilities to support the transmigrant. It caused the certification hold
by oil palm farmer was higher than the certification hold by rubber farmer.
In input side, rubber farms required more urea than NPK, while palm oil
farms took more NPK than Urea. It was caused by the differences of nutrient
needed by rubber and oil palm trees. Labor costs were the largest variable cost in
rubber and oil palm cultivation. Seen from the average per year, labor costs of
rubber farms was higher than that of oil palm farms. Based on the financial
analysis such as NPV, IRR and gross B/C, oil palm farms were more profitable
than rubber farms. Unproductive land would be more widely used for the
development of oil palm farms than for the development of rubber farms, even the
conversion of agricultural land would occur from rubber to oil palm farms.
Regarding double log function calculated by OLS method, 2 factors
determining rubber production were production area and labor used. The elasticity
of each variable was 0.582 and 0.377, respectively. Different with previous
function, oil palm production was influenced by production area, urea, NPK and
herbicide where their elasticities were 1.019, 0.084, 0.107 and -0.207,
respectively. Although rubber farms were less profitable than oil palm farms,
Rubber production could be improved by considering some factors influencing
production. In order to prevent the land use exploitation that could cause
deforestation, the development of oil palm should be focused on intensification
rather than extensification.
Keyword: oil palm, profitability, rubber, smallholders
© Bogor Agricultural University Right Reserved, 2014
Copyright Reserved
Prohibited to cite a part of or entire of this thesis without inclusion or mentioning
the source. The citation is only for academic, research, scientific writing,
reporting, criticism writing or a problem reviewing and the citation does not
inflict a financial loss in the proper interest of Bogor Agricultural University.
Prohibited to announce and reproduced in any form or by any means without
written permission from Bogor Agricultural University.
FARM PROFITABILITY AND RESOURCE USE IN RUBBER
AND OIL PALM SMALLHOLDERS OF BATANG HARI,
JAMBI, INDONESIA
TRIANA GITA DEWI
A thesis
Submitted to the Graduate School in Partial Fulfillment of the Requirement
for Master of Science Degree
in
Study Program of Agribusiness
GRADUATE SCHOOL
BOGOR AGRICULTURAL UNIVERSITY
BOGOR
2014
External Examiner
: Dr. Ir. Netti Tinaprilla, MM
Thesis Tittle
Name
Registration Number
: Farm Profitability and Resource Use in Rubber and Oil
Palm Smallholders of Batang Hari, Jambi, Indonesia.
: Triana Gita Dewi
: H451110091
Approved by
Advisory Committee,
Prof. Dr. Ir. Rita Nurmalina, MS
Chairman
Dr. Amzul Rifin, MA
Member
Prof. Matin Qaim
Member
Dr. Vijesh Krishna
Member
Agreed by
Coordinator of Major Agribusiness
Dean of Graduate School
Prof. Dr. Ir. Rita Nurmalina, MS
Dr. Ir. Dahrul Syah, MscAgr
Examination Date:
Submission Date:
ACKNOWLEDGMENT
All praise to Allah who the most precious and the most merciful for His
blessing and guidance to finish this thesis. The theme of this research which was
started on June 2013 is profitability and resource use in smallholder farming.This
research is my piece of work but it would have been impossible without support
many people. Hence, I would like to appreciate everything they have given to me.
First of all, I am indebted to my families who always give me love, advice,
and support which always encourage me to learn and appreciate my life. I
dedicate this thesis to my beloved parent.
I would acknowledge to my supervisor from Bogor Agricultural
University, Prof. Dr. Ir. Rita Nurmalina, MS and Dr. Amzul Rifin, SP, MA for
their support academically and mentally in thesis writing from the beginning until
the last step. I would like also to thank to my supervisor from Georg-August
University of Goettingen, Prof. Matin Qaim and Dr. Vijesh Krishna for their
insight and valuable comment to my thesis.
My sincere thank further to the Collaborative Research Center (CRC),
Georg-August University of Göttingen, especially for CRC team leading by Prof.
Matin Qaim for providing valuable data that I used for this thesis. I would like
also to thank to Dr. Ir. Supijatno, M.Si who give me data and information related
to commodities used in this thesis.
My gratitude is also given to Indonesian Planning and Cooperation of
Foreign Affairs (BPKLN) and Directorate General of Higher Education (DIKTI)
which always provide scholarship for my entire graduate school period. This
research was also conducted well due to the research financial support of them.
Bogor, Oktober 2014
Triana Gita Dewi
TABLE OF CONTENTS
LIST OF TABLES
xvi
LIST OF FIGURES
xvi
LIST OF APPENDIXES
xvii
1 INTRODUCTION
Background
Problem Statement
Research Objectives
Research Benefits
Research Scope
1
1
4
5
5
6
2 LITERATURE REVIEW
Land Use Changes across The World
Land Use Changes in Indonesia
Planting System of Rubber and Oil Palm
Input Use
Profitability of Rubber and Oil Palm Smallholders
Factors Determining Rubber and Oil Palm Production
6
6
7
8
8
9
10
3 RESEARCH FRAMEWORK
Theoretical Framework
Profitability
Cost and Benefit
Production Function
Production Factors
Operational Framework
Hypothesis
11
11
11
12
13
17
18
20
4 RESEARCH METHOD
Types and Sources of Data
Data Processing Techniques
T Test for Descriptive Analysis
Profitability
Double Log Function
Basic assumptions
20
20
21
22
23
27
31
5 THE CHARACTERISTICS OF RUBBER AND OIL PALM
SMALLHOLDERS
Farm Characteristics
Farmer Characteristics
31
31
33
6 PROFITABILITY ANALYSIS OF RUBBER AND OIL PALM
SMALLHOLDERS
Cash Flow Projection
Inflow Projection
Outflow Projection
Profit Analysis
35
35
35
37
39
Profit Analysis of Rubber Smallholders
Profit Analysis of Oil Palm Smallholders
7 FACTORS DETERMINING PRODUCTION OF RUBBER AND OIL
PALM FARMS
Production Function of Rubber
Classic Assumption Test of Rubber Production Function
Model Significance Test and Goodness of Fit of Rubber
Production Function
Factors Determining Rubber Production
Production Function of Oil Palm
Classical Assumption Test of Oil Palm Production Function
Model Significance Test and Goodness of Fit of Oil Palm
Production Function
Factors Determining Oil Palm Production
8 CONCLUSIONS AND RECOMMENDATIONS
Conclusions
Recommendations
40
41
42
42
42
44
45
48
48
50
50
55
55
55
REFERENCES
56
APPENDIX
62
AUTOBIOGRAPHY
81
xvi
LIST OF TABLES
1 Land use in 5 district in jambi province (ha)
3
2 Production area of rubber and oil palm farms in batang hari, jambi
5
(2000-2011)
3 Cashflow components
24
4 Variable explanation
28
5 Alternatives for t test
30
6 Farm characteristic comparisons
33
7 Farmer characteristic comparisons
34
8 Model estimation result of factors determining rubber production
43
9 Hypothesis test summary of kolgomorov-smirnov test for rubber
44
double log function
10 ANOVA of regression model for glejser test of rubber double log 44
function
11 Model estimation result of factors determining oil palm production
49
12 Hypothesis test summary of kolgomorov-smirnov test for oil palm
50
double log function
13 ANOVA of regression model for glejser test of oil palm double log
50
function
LIST OF FIGURES
1 Production area of rubber and oil palm smallholders in indonesia (000
ha)
2 Bokar and palm oil production in indonesia (000 ton)
3 Rubber and oil palm production each Regency in Jambi Province
4 The fixed, variable and total cost curves
5 Neoclassical Three-Stage Production Function
6 TVP, TFC, VMP. MFC and Profit
7 Operational framework
8 Business period
9 Percentage of farms based on production area
10 Percentage of farms based on plantation age
11 Ethnicity of rubber and oil palm farmers
12 Migration
13 Land certification ownership of rubber and oil palm farmers
14 Rubber and oil palm trees production per ha per year
15 Variable cost of rubber and oil palm smallholders
16 Bokar price data in 2012
17 Fresh fruit bunches price data in 2012
18 Error distributed histogram of rubber double log function
19 Error distributed histogram of oil palm double log function
1
2
3
13
14
16
19
23
32
32
34
34
35
36
39
40
41
43
49
xvii
LIST OF APPENDIXES
1
2
3
4
5
6
7
8
Production center of rubber in Indonesia
Production center of oil palm in Indonesia
Investment cost of rubber farms per Ha in Batanghari Regency
Investment cost of oil palm farms per Ha in Batanghari Regency
Cash flow of rubber farm per Ha in Batanghari Regency (total labor)
Cash flow of oil palm farm per Ha in Batanghari Regency (total labor)
Cash flow of rubber farm per Ha in Batanghari Regency (hired labor)
Cash flow of oil palm farm per Ha in Batanghari Regency (hired labor)
62
62
63
64
65
69
73
77
1 INTRODUCTION
Background
000 Ha
Land use change phenomena are getting more attention since it is always
associated with deforestation. Deforestation mostly occurred in Sumatera, one of
the largest islands in Indonesia. It was mainly caused by the wide land required. In
Indonesia, loggers, smallholders, and estate crops were the main driving actors of
deforestation (Pagiola S 2000). In 1995, logging gave a high incentive for loggers
to export timber because of low fee charged by the government. In smallholder
side, many of agricultural land use alternatives let smallholder to use forest more
than before, which could be found as jungle rubber or rubber monoculture. In
comparison to smallholder farming, plantation estates have a larger role in
determining the land use changes, where oil palm is often cited as a major crop
responsible for these changes. However, the high incentive of this commodity
attracted many smallholders to built their farms and become a threat to the forest.
The land use of plantations is conducted by the two parties, ie companies that
have large plantation and smallholders which have smaller scale plantation. The
large plantation estates usually have a legal entity. They are also use a very wide
production area (> 10 ha) and capital intensive. In contrast, smallholder
plantations are established in a small area (