ECONOMIC ANALYSIS OF AGROFORESTRY OF MERANTI (SHOREA LEPROSULA MIQ) PLANTED AMONG OIL PALM TREES AS A MODEL FOR DEVELOPMENT OF ENVIRONMENTALLY FRIENDLY OIL PALM PLANTATION IN THE RIAU PROVINCE, INDONESIA

By: Robin Takaweian, Almasdi Syahza, Usman Pato, Mubarak.

Abstract: The growth of oil palm plantations in Riau Province is a great opportunity to optimize the use of space and land by inserting meranti (S. leprosula) tree among the palm oil plants. The study was aimed to economic analyze the agroforestry of meranti planted among the oil palm trees as a model for development of oil palm plantations. This research was carried out in a mixed meranti-palm oil plantation privately owned by a farmer at the Village of Pasir Jaya, Sub-district of Rambah Hilir, Rokan Hulu Regency, Riau Province, Indonesia. The surveys and structured interviews were used to identify the management of oil palm plantations owned by the community. Economic valuation approach was used to determine the economic analysis of the management of oil palm plantations owned by the community. The results of study showed that agroforestry of meranti planted among the palm oil plants were able to provide additional benefits revealed from the economic value of meranti tree as Bank of Replanting of IDR. 56,017,737. The value of BCR of this agroforestry system was greater than the value of BCR on the monoculture system of about 3.1 compared to 2.7. The development model of this agroforestry system is economically feasible and beneficial and can also be implemented on a broader scale of oil palm plantations both in main estate and plasma estate.

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STRATEGI PERCEPATAN PEMBANGUNAN EKONOMI MELALUI PENATAAN KELEMBAGAAN DAN INDUSTRI KARET ALAM DI PROPINSI RIAU

Perkembangan sektor pertanian khususnya komoditi kelapa sawit di Daerah Riau telah menggeser usahatani komoditi karet alam. Perkebunan karet di Riau masih di kelola secara tradisional. Pengelolaannya dilakukan secara sederhana. Tingkat produktivitasnya  rendah, yaitu sekitar 738 kg/ha/tahun.  Kurangnya perawatan menyebabkan kualitas … Continue reading

DEVELOPMENT OF PALM OIL SECTOR AND FUTURE CHALLENGE IN RIAU PROVINCE, INDONESIA

Presented at the Palm Oil Seminar, Kyoto University, Japan, May 9, 2015

Palm oil commodity in Riau has been able to improve the welfare of rural ctizena and create a multiplier effect on the rural economy. Until the year 2013, land for palm oil agribusiness has reached 2,372,402 ha supported with 172 units of palm oil mills with  capacity of 7,800 tons per hour. Riau Province still needs 13 units of palm oil mills with  capacity of 60 tons per hour. Development of palm oil plantations results in land conversion, posing potential erosion in the western part of Riau. In anticipating  environmental damage, the Government of Indonesian imposes the Indonesian Sustainable Palm Oil (ISPO) policy. This policy aims to prove to the world, particularly the western countries, that Indonesian crude palm oil (CPO) products are environmentally friendly. The implementation of sustainable plantation development is conducted by involving three components, i.e.: universities, entrepreneurs (investors) and smallholders.

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