Is the Oil Palm Land Efficient in Indonesia?
Abstract
The plantation’s sub-contribution sector to the country’s gross domestic product reflects the role oil palm plantations have played in boosting the economy. The goal of this study is to examine land efficiency and the variables that affect its value in Indonesian national superior plantations, by the application of the Stochastic Frontier Analysis (SFA) method. Age, education, financial situation, and geographic location of the farmer all affect their engagement in agriculture, particularly when it comes to spreading new techniques. Therefore, policies that are based on input variables that demonstrate substantial outcomes in boosting the output of rubber plantations in Indonesia must be implemented by the government through certain institutions.
Keywords: palm oil, efficiency, Stochastic Frontier Analysis (SFA)
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