EFFICIENCY OF OIL PALM SMALLHOLDERS IN INDONESIA: A META-FRONTIER APPROACH

This research aims to evaluate the performance production and technical efficiency of oil palm production in Indonesia based on the management pattern (independent farmers and supported farmers). The secondary data were used from the Estate Cultivation Household Survey (ST2013 SKB) conducted by BPS-...

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Main Authors: Firna Varina, Sri Hartoyo, Nunung Kusnadi, Amzul Rifin
Format: Article
Language:English
Published: Bogor Agricultural University 2020-11-01
Series:Jurnal Manajemen & Agribisnis
Online Access:https://jurnal.ipb.ac.id/index.php/jmagr/article/view/34144
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author Firna Varina
Sri Hartoyo
Nunung Kusnadi
Amzul Rifin
author_facet Firna Varina
Sri Hartoyo
Nunung Kusnadi
Amzul Rifin
author_sort Firna Varina
collection DOAJ
description This research aims to evaluate the performance production and technical efficiency of oil palm production in Indonesia based on the management pattern (independent farmers and supported farmers). The secondary data were used from the Estate Cultivation Household Survey (ST2013 SKB) conducted by BPS-Statistics Indonesia. The empirical analysis involved using a meta-frontier approach, allowing one to decompose efficiency into group-level technical efficiency and technology gaps. The results indicate that the output of each management pattern behind their potential with the mean technical efficiency of 0,6789 and 0,7127 for independent farmers and supported farmers, respectively. The technology gap ratio statistics showed that the farmers had adopted the best available smallholder production technology in their farming. However, independent farmers were slightly more optimal than supported farmers. The efficiency measure generated from the meta-frontier revealed that supported farmers were more efficient, where the primary source of inefficiency came from managerial inefficiency. Thus, the policies to increase the production of oil palm smallholders must focus on the improvement of technical skills and managerial capabilities of farmers on the efficient use of resources and advanced technology by considering each characteristic of each management pattern. Keywords: technical efficiency, independent farmers, supported farmers, oil palm, meta-frontier
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spelling doaj.art-d8069e5ba6b74037813b93a8a78b10cf2022-12-21T21:52:00ZengBogor Agricultural UniversityJurnal Manajemen & Agribisnis1693-58532407-25242020-11-0117321721710.17358/jma.17.3.21734144EFFICIENCY OF OIL PALM SMALLHOLDERS IN INDONESIA: A META-FRONTIER APPROACHFirna Varina0Sri Hartoyo1Nunung Kusnadi2Amzul Rifin3Department of Agribusiness, Graha Karya School of AgricultureDepartment of Economics, Faculty of Economics and Management, IPB UniversityDepartment of Agribusiness, Faculty of Economics and Management, IPB UniversityDepartment of Agribusiness, Faculty of Economics and Management, IPB UniversityThis research aims to evaluate the performance production and technical efficiency of oil palm production in Indonesia based on the management pattern (independent farmers and supported farmers). The secondary data were used from the Estate Cultivation Household Survey (ST2013 SKB) conducted by BPS-Statistics Indonesia. The empirical analysis involved using a meta-frontier approach, allowing one to decompose efficiency into group-level technical efficiency and technology gaps. The results indicate that the output of each management pattern behind their potential with the mean technical efficiency of 0,6789 and 0,7127 for independent farmers and supported farmers, respectively. The technology gap ratio statistics showed that the farmers had adopted the best available smallholder production technology in their farming. However, independent farmers were slightly more optimal than supported farmers. The efficiency measure generated from the meta-frontier revealed that supported farmers were more efficient, where the primary source of inefficiency came from managerial inefficiency. Thus, the policies to increase the production of oil palm smallholders must focus on the improvement of technical skills and managerial capabilities of farmers on the efficient use of resources and advanced technology by considering each characteristic of each management pattern. Keywords: technical efficiency, independent farmers, supported farmers, oil palm, meta-frontierhttps://jurnal.ipb.ac.id/index.php/jmagr/article/view/34144
spellingShingle Firna Varina
Sri Hartoyo
Nunung Kusnadi
Amzul Rifin
EFFICIENCY OF OIL PALM SMALLHOLDERS IN INDONESIA: A META-FRONTIER APPROACH
Jurnal Manajemen & Agribisnis
title EFFICIENCY OF OIL PALM SMALLHOLDERS IN INDONESIA: A META-FRONTIER APPROACH
title_full EFFICIENCY OF OIL PALM SMALLHOLDERS IN INDONESIA: A META-FRONTIER APPROACH
title_fullStr EFFICIENCY OF OIL PALM SMALLHOLDERS IN INDONESIA: A META-FRONTIER APPROACH
title_full_unstemmed EFFICIENCY OF OIL PALM SMALLHOLDERS IN INDONESIA: A META-FRONTIER APPROACH
title_short EFFICIENCY OF OIL PALM SMALLHOLDERS IN INDONESIA: A META-FRONTIER APPROACH
title_sort efficiency of oil palm smallholders in indonesia a meta frontier approach
url https://jurnal.ipb.ac.id/index.php/jmagr/article/view/34144
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AT srihartoyo efficiencyofoilpalmsmallholdersinindonesiaametafrontierapproach
AT nunungkusnadi efficiencyofoilpalmsmallholdersinindonesiaametafrontierapproach
AT amzulrifin efficiencyofoilpalmsmallholdersinindonesiaametafrontierapproach