| Summary: | The traditions and planting techniques of oil palm cultivation by smallholders in the Muaro Jambi region, and the yields of fresh fruit bunches from smallholders vary. This result is because the plant’s number and the age of plant affects the amount of oil palm production and the farmer’s profit. The objective of research is to (1) analyze the smallholder replanting oil palm plantations’ feasibility evaluated from the financial point of views using investment criteria, (2) analyze his, her, their, etc. smallholder. Sensitivity of replanting oil palm plantations to changes in input and output prices. The study was conducted in Muaro Jambi district. The data analysis method usages investment criteria using NPV, IRR, BCR, PBP and BEP. Research data used data obtained from questionnaires. In the Muaro Jambi region, up to 60 pure independent smallholder farmers replanted, oil palm samples were obtained through snowball sampling. The results of the study show that smallholder oil palm planting is feasible through conventional replanting and understory replanting. The results of the sensitivity analysis showed that when the price of production factors increases by 15% and the selling price of FFB is considered constant, and the selling price of FFB decreased by 15% and the price of production factors remains, both types of replanting of oil palm plantations are still feasible. Changes in FFB prices are more sensitive to changes in the value of investment criteria than changes in production factor prices.
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