Efisiensi Teknis Perkebunan Sawit Rakyat Di Provinsi Riau: Pendekatan Model Produksi Cobb-Douglas Dan Translog

Limetry Liana, Hermanto Siregar, Bonar Marulitua Sinaga and Dedi Budiman Hakim

Journal of Indonesian Agribusiness, 2025, vol. 13, issue 1

Abstract: This study assesses the technical efficiency of smallholder oil palm plantations in Riau Province by applying two production function models Cobb-Douglas and translog analyzed using a stochastic frontier approach. The Cobb-Douglas model assumes constant returns to scale and a linear relationship between inputs and outputs. In contrast, the translog model allows for greater flexibility by accounting for non-linear interactions between variables. Data were collected from 115 smallholder farmers in Siak, Riau, through surveys and interviews. The results from the Cobb-Douglas model indicate that land area, crop age, and chemical and organic fertilizers significantly and positively impact the production of Fresh Fruit Bunches (FFB). Conversely, the application of pesticides and labor did not show a significant effect on output. The analysis using the translog model revealed that labor, the square of chemical fertilizer, and the interaction between land area, crop age, organic fertilizer, and pesticides significantly affected FFB production. However, land area and the interaction between land area and organic fertilizer had a significant negative impact. Additionally, the technical efficiency analysis of both models revealed an average efficiency of 0.933 for the Cobb-Douglas model and 0.942 for the translog model, indicating high technical efficiency in smallholder plantations. These findings highlight the validity of both models in evaluating the technical efficiency of smallholder oil palm production. The translog model is recommended to provide a more comprehensive understanding of input interactions. Future research should explore the SFA method with other production function models.

Keywords: Productivity; Analysis (search for similar items in EconPapers)
Date: 2025
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