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province. There are 3 891 transmigrates people located in this district from 2002 until 2005.
Population growth was also attributed by spontaneous government sponsored migration, which was mainly from West Sumatera and North Sumatera. Since it
included non-permanent migration, the extent of this type of population movement was unknown. On the other hand government sponsored migration to Jambi started as
early as 1950’s, which was initially programmed on small-scale to include landless farmers from Java, Madura and Bali etc. Each migrant was provided with two
hectares of land for food crop production. As suitable land for food crops was increasingly scarce, resettlement programmes were integrated with smaller tree crop
development, notably rubber and oil palm. Higher income from tree crop farming, as it was enjoyed by participating smallholders, made this province a preferred
destination for transmigration, at least from the potential migrant’s potential.
4.2.2. Size of the Household
Occupational distribution in both case study villages was not much different from the general pattern of employment in broader administrative units. In both cases,
agriculture absorbed most of the workforce and was an important source of income to the populations. In fact, more than 80 and 71 of households in Senamat and
Muara Kuamang villages respectively earned income from agricultural activities. About 35 of agricultural households in Senamat were landless farm laborers
whereas in Muara Kuamang, the proportion was recorded almost 5 in Senamat village labor was paid on a daily basis according to market rates whereas in Muara
Kuamang employed non-family labor for harvesting only was paid on a piece rate
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basis under long-term contractual arrangements of shared tapping or paid labor in other agricultural activities. In addition to agriculture, other important occupations
included laborer of construction, small business and petty trades.
Table 11. Number of Households by Occupation and Administrative Locations in 2005
Main Occupation Agriculture
Muara Bungo District
Senamat Village Muara Kuamang
Village
Owner- operator 4 144
190 132
Laborer 1 606
100 10
Mining and Quarrying
1 370 40
Construction 387
40 29
Transport and Communication
123 11
18 Others
1 158 21
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Total 8 788
362 263
Source: Statistics Muara Bungo 2005
V. ECONOMIC PERFORMANCE OF SMALLHOLDERS
5.1. Farm Budget Analysis and Profitability
This sub-section is all about rubber establishment in detail, specifically to describe the results of farm budget calculation including profitability in terms of
costs and returns.
5.1.1. Cost of Rubber Establishment
The result of 30 years farm budget calculation based on 2007 macroeconomic assumption figures out that financially, the total expenditure NPV discounted spent
on rubber establishment under monoculture system was found to be Rp 19 144 million per hectare, whereas under rubber agroforestry system was Rp 8 583 million
per hectare Table 12. The biggest part of these expenditures was spent on labor input i.e. 60 for
rubber monoculture system and 79 for rubber agroforestry system. The study reveals that most of the labor costs were spent under rubber garden maintenance and
its related activities that are mostly done by hired laborer. Under smallholder rubber monoculture system the total expenditures spent on rubber garden maintenance was
Rp 4 344 million 23 out of the total cost while, under smallholder rubber agroforestry system farmers spent Rp 2 630 million 31 out of total cost. Table 12
presents the cost structure of rubber establishment during 30 years period. Labor inputs increase during tapping period to increase on yields and decrease
during the rainy season when there is reduced tapping.
