The Business Feasibility of Smallholder’s Oil Palm Plantation in Seruyan Regency, Central Kalimantan, Indonesia

Abstract

Oil palm is a featured commodity plantation in Seruyan Regency. This is due to the high economic value of those plantations. In addition, the agro-ecological conditions in this region mostly suitable for oil palm growth and development. The purpose of this study was to analyze the feasibility of non-governmental oil palm plantations in Seruyan Regency. The research method was used method exploratory survey (exploratory research) with a feasibility analysis such as calculation of Net Present Value (NPV), Benefit Cost Ratio (B / C Ratio) and Internal Rate of Return (IRR). The results of the study explained that the NPV, B / C Ratio and IRR significantly profitable. With these results indicate that the use of land to be converted into palm oil plantations will gain great benefit in improving the welfare of people in Seruyan Regency, Central Kalimantan.

Keywords: Oil Palm Plantations, non-governmental, Business Feasibility, Investment