Title: Efficiency of Indonesian Palm Oil Plantations
Author: Faqih Nur Hidayat
Student ID: 041824453013
Study Program: Master of Economics
Year of Publication: 2021
Abstract:
Indonesia is the world's largest producer and exporter of palm oil. Indonesia can meet more than fifty percent of the world's palm oil needs. However, Indonesian palm oil farmers are experiencing stagnation and have experienced a loss of potential fresh fruit bunch (FFB) yields. Efficiency measurements in palm oil plantations are necessary. The purpose of this study is to analyze technical efficiency, scale efficiency, and land use efficiency. To estimate the efficiency of palm oil plantation farmers, cross-section data from 2014 obtained from BPS was used. The approach to estimating plantation efficiency uses translog stochastic frontier and input distance to estimate technical efficiency, scale efficiency, and land use efficiency. The analysis results show that the average value of technical efficiency of palm oil plantations is 0.59, scale efficiency is 0.224, and land use efficiency is 0.619. To achieve the optimal scale of palm oil plantations, it is necessary to increase 0.816 and can increase technical efficiency by 0.41. While the low land use efficiency is higher than technical efficiency, it is concluded that the low land use efficiency is caused by lower technical efficiency. Intensifying oil palm plantations is one way to improve efficiency. Intensifying land use and improving technical and scale efficiency will boost oil palm productivity.
Keywords: oil palm, technical efficiency, scale efficiency, land use efficiency.
Read more: https://repository.unair.ac.id/109616/2/2.%20ABSTRAK.pdf