Independent Oil Palm Smallholder Income Based Typology of Land in Jambi, Indonesia

Abstract

Oil palm is the main commodity that plays a very important role in economic development in some rural areas of Jambi Province. The main objective of the study was to compare the income of independent oil palm smallholders by type of land in Jambi Province.  The secondary data was applied to 1,587 selected independent oil palm farmers from the results of the 2014 Estate Cultivation Household Survey by Statistics Indonesia. The analytical tool used in this study was farming income and comparative analysis. The result provided empirical evidence that there was a difference in income between farmers who cultivated oil palm on mineral land and those who cultivated on peat land. The income of independent farmers on mineral land was greater than those on peat land.  The analysis of a Revenue Cost ratio showed that the value of R/C ratio was greater than one for two of them, but no difference between them.  The results may provide support for the development policy of oil palm smallholders according to land suitability.