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Evaluating the feasibility of oil palm agroforestry in Harapan Rainforest, Jambi, Indonesia

Forest and Society · Vol. 5 No. 2 (2021) · pp. 458–477

DOI
10.24259/fs.v5i2.10375
ISSN
2549-4333, 2549-4724
Published
2021-09-05
Publisher
Forestry Faculty, Universitas Hasanuddin
Language
en
License
creativecommons.org/licenses/by/4.0

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.

Keywords

Collaboration network of the authors

35 authors · 105 co-authorship links

Hover or tap a name to highlight its co-authors. Double-click to open the author's page.

  • IPB University
  • Jenderal Soedirman University
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
Show as table
Co-authorOrganisationJoint articles
Rici Tri Harpin PranataIPB University1
Tri BudiartoIPB University1
Willy BachtiarIPB University1
Nur Hannah MuthohharohIPB University1
Cecep KusmanaAffiliation unknown1
Dudung DarusmanAffiliation unknown1
Gusti HardiansyahAffiliation unknown1
Muhammad SheriffdeenAffiliation unknown1
Perdinan PerdinanAffiliation unknown1
Monica Di GregorioAffiliation unknown1
Hariadi KartodihardjoAffiliation unknown1
Handian PurwawangsaAffiliation unknown1
Ernan RustiadiAffiliation unknown1
Annuri RossitaAffiliation unknown1
Lars HeinAffiliation unknown1
Dodik NurrochmatAffiliation unknown1
Akhmad RiqqiAffiliation unknown1
Lala M. KolopakingAffiliation unknown1
Septri WidionoAffiliation unknown1
Ekawati Sri WahyuniAffiliation unknown1
Suryanto SuryantoJenderal Soedirman University1
Suria Darma TariganAffiliation unknown1
Irdika MansurAffiliation unknown1
Agus WahyudiAffiliation unknown1
Iskandar Zulkarnaen SiregarAffiliation unknown1
Ishak YassirAffiliation unknown1
Mangarah SilalahiAffiliation unknown1
Rhett D. HarissonAffiliation unknown1
Lutfy AbdulahAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.unhas.ac.id/index.php/fs/oai, first harvested 5 Nov 2026, last seen 5 Nov 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en">Evaluating the feasibility of oil palm agroforestry in Harapan Rainforest, Jambi, Indonesia</dc:title>
	<dc:creator xml:lang="en">Rahmani, Tabah Arif</dc:creator>
	<dc:creator xml:lang="en">Nurrochmat, Dodik Ridho</dc:creator>
	<dc:creator xml:lang="en">Hero, Yulius</dc:creator>
	<dc:creator xml:lang="en">Park, Mi Sun </dc:creator>
	<dc:creator xml:lang="en">Boer, Rizaldi </dc:creator>
	<dc:creator xml:lang="en">Satria, Arif </dc:creator>
	<dc:subject xml:lang="en">financial feasibility</dc:subject>
	<dc:subject xml:lang="en">land use policy</dc:subject>
	<dc:subject xml:lang="en">oil palm agroforestry</dc:subject>
	<dc:subject xml:lang="en">sustainable forest management</dc:subject>
	<dc:subject xml:lang="en">Harapan Rainforest</dc:subject>
	<dc:description xml:lang="en">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.</dc:description>
	<dc:publisher xml:lang="en">Forestry Faculty, Universitas Hasanuddin</dc:publisher>
	<dc:date>2021-09-05</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en">Research Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.unhas.ac.id/index.php/fs/article/view/10375</dc:identifier>
	<dc:identifier>10.24259/fs.v5i2.10375</dc:identifier>
	<dc:source xml:lang="en">Forest and Society; Vol. 5 No. 2 (2021): NOVEMBER; 458-477</dc:source>
	<dc:source>2549-4333</dc:source>
	<dc:source>2549-4724</dc:source>
	<dc:language>en</dc:language>
	<dc:relation>https://journal.unhas.ac.id/index.php/fs/article/view/10375/7324</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2021 Forest and Society</dc:rights>
	<dc:rights xml:lang="en">http://creativecommons.org/licenses/by/4.0</dc:rights>
</oai_dc:dc>