Abstract
This study was conducted to assess the role of adoption of oil palm cultivation technology that has been recommended by the government (RI Regulation of the Minister of Agriculture No 131 / Permentan / OT.140 / 12/2013 concerning Guidelines for Good Oil Palm Cultivation) on production efficiency from smallholder plantations on the dependent smallholder and independent smallholder in Riau and West Kalimantan. Specifically, this study is: (1) to analyze the factors that influence the level of production and analyze the technical efficiency of smallholder oil palm in Riau and West Kalimantan, (2) to analyze the effect of intensity of technology adoption on productivity and efficiency of smallholder oil palm production in Riau and West Kalimantan, (3) To identify the factors affecting technical inefficiency in smallholder plantations in Riau and West Kalimantan. The research objectives were analyzed by using a stochastic frontier model to estimate productivity, the level of technical efficiency, and producer inefficiency simultaneously with allocative efficiency and economic efficiency. The results showed that smallholder oil palm farmers who adopt all recommended technologies compared to farmers who adopt not all recommended technologies had higher production efficiency. Analysis of technical efficiency showed that farmers in the dependent smallholder were more technically efficient than independent smallholders. Farmers who adopt more technology and had more experience, had higher efficiency than others. Farmers who were often associated with extension workers and more experience had higher efficiency than others. Keywords: oil palm smallholder, technology adoption, technical efficiency, Riau, West Kalimantan
Highlights
As the world's largest palm oil producer, Indonesia has a relatively lower productivity level compared to other major palm oil- producing countries (Zen Z et al 2006; Woittiez LS et al 2016 ; Ernah et al 2016)
This fact is indicated by Indonesia's average productivity level of only 16.87 tons per hectare per year in the form of fresh fruit bunches (FFB), which only ranks eighth in the world
The objectives of this study were: (1) to analyze the factors that influence the level of production and analyze the technical efficiency of smallholder oil palm in Riau and West Kalimantan, (2) to analyze the effect of intensity of technology adoption on productivity and efficiency of smallholder oil palm production in Riau and West Kalimantan, (3) To identify the factors affecting technical inefficiency in smallholder plantations in Riau and West Kalimantan
Summary
As the world's largest palm oil producer, Indonesia has a relatively lower productivity level compared to other major palm oil- producing countries (Zen Z et al 2006; Woittiez LS et al 2016 ; Ernah et al 2016). This fact is indicated by Indonesia's average productivity level of only 16.87 tons per hectare per year in the form of fresh fruit bunches (FFB), which only ranks eighth in the world. The low average level of Indonesian productivity is thought to be due to the relatively low contribution of productivity from smallholder farmers' plantation because oil palm is planted on large-scale plantations, and with the local smallholders’ involvement of local smallholders. The production of smallholder oil palm plantations is estimated to be only 50% lower than the potential results that can be achieved, while those of government Government and private plantations are estimated to have reached 85% -90% of the potential achieved (Lifianthi, 2012; Siswati L et al 2012)
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