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:	EN ID
Published:	Bogor Agricultural University 2020
Subjects:	Agriculture (General) S1-972 Business HF5001-6182
Online Access:	https://doaj.org/article/d8069e5ba6b74037813b93a8a78b10cf
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spelling	oai:doaj.org-article:d8069e5ba6b74037813b93a8a78b10cf2021-11-04T04:20:00ZEFFICIENCY OF OIL PALM SMALLHOLDERS IN INDONESIA: A META-FRONTIER APPROACH1693-58532407-252410.17358/jma.17.3.217https://doaj.org/article/d8069e5ba6b74037813b93a8a78b10cf2020-11-01T00:00:00Zhttps://jurnal.ipb.ac.id/index.php/jmagr/article/view/34144https://doaj.org/toc/1693-5853https://doaj.org/toc/2407-2524This 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-frontierFirna VarinaSri HartoyoNunung KusnadiAmzul RifinBogor Agricultural UniversityarticleAgriculture (General)S1-972BusinessHF5001-6182ENIDJurnal Manajemen & Agribisnis, Vol 17, Iss 3, Pp 217-217 (2020)
institution	DOAJ
collection	DOAJ
language	EN ID
topic	Agriculture (General) S1-972 Business HF5001-6182
spellingShingle	Agriculture (General) S1-972 Business HF5001-6182 Firna Varina Sri Hartoyo Nunung Kusnadi Amzul Rifin EFFICIENCY OF OIL PALM SMALLHOLDERS IN INDONESIA: A META-FRONTIER APPROACH
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
format	article
author	Firna Varina Sri Hartoyo Nunung Kusnadi Amzul Rifin
author_facet	Firna Varina Sri Hartoyo Nunung Kusnadi Amzul Rifin
author_sort	Firna Varina
title	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_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_sort	efficiency of oil palm smallholders in indonesia: a meta-frontier approach
publisher	Bogor Agricultural University
publishDate	2020
url	https://doaj.org/article/d8069e5ba6b74037813b93a8a78b10cf
work_keys_str_mv	AT firnavarina efficiencyofoilpalmsmallholdersinindonesiaametafrontierapproach AT srihartoyo efficiencyofoilpalmsmallholdersinindonesiaametafrontierapproach AT nunungkusnadi efficiencyofoilpalmsmallholdersinindonesiaametafrontierapproach AT amzulrifin efficiencyofoilpalmsmallholdersinindonesiaametafrontierapproach
_version_	1718445363064471552

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

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