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Mi Sun Park
Graduate School of International Agricultural Technology, Institutes of Green-bio Science & Technology, Seoul National University, Republic of Korea
Agriculture, Biological Sciences & Forestry Environmental Science Social Sciences

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Evaluating the feasibility of oil palm agroforestry in Harapan Rainforest, Jambi, Indonesia Tabah Arif Rahmani; Dodik Ridho Nurrochmat; Yulius Hero; Mi Sun Park; Rizaldi Boer; Arif Satria
Forest and Society Vol. 5 No. 2 (2021): NOVEMBER
Publisher : Forestry Faculty, Universitas Hasanuddin

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24259/fs.v5i2.10375

Abstract

About 2.5 million hectares of a total of 15 million hectares of oil palm plantation in Indonesia are planted in, or conflict with, the forest zone. Oil palm plantations face a conflict between socio-economic and ecological issues. This study was conducted in the Harapan Rainforest, Jambi to evaluate the potential of oil palm-based agroforestry to reconcile economic and ecological interests, by considering socio-economic and financial feasibility as well as biodiversity and land cover. The financial feasibility of oil palm agroforestry is compared to oil palm monoculture, employing a discounted cash flow approach using three indicators: net present value (NPV), benefit-cost ratio (BCR), and internal rate of return (IRR). Two ecological indicators—biodiversity and land cover—are evaluated in an experimental plot of oil palm agroforestry in Jambi. This study indicates that the NPV, BCR, and IRR of oil palm monoculture are IDR 62,644,836 (US$ 4,476.84), 1.39, and 20.77%, respectively, while the oil palm agroforestry planted in the experimental plot potentially generates much better values of financial indicators with NPV, BCR, and IRR being IDR 209,221,212 (US$ 14,951.76), 1.79, and 24.42%, respectively.  Besides evaluating financial feasibility, we also found that the reviewed current studies indicate that the oil palm agroforestry provides positive ecological impacts, such as increased forest land cover, invertebrate fauna, and bird diversity.
Co-Authors Arif Satria Dodik Ridho Nurrochmat Rizaldi Boer Tabah Arif Rahmani Yulius Hero