THE FEASIBILITY OF FARMING INVESTMENT AND OPPORTUNITIES IN RUBBER INDUSTRY IN MUARA ENIM REGENCY

Azwardi, Azwardi THE FEASIBILITY OF FARMING INVESTMENT AND OPPORTUNITIES IN RUBBER INDUSTRY IN MUARA ENIM REGENCY. In: Sriwijaya Economics and Business Conference, 27-28 November 2016, Palembang.

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    Abstract

    The purpose of research conducted to determine the feasibility of investment in rubber plantations and rubber commodities downstream opportunities. Investment feasibility rubber plantations cover the technical aspects, production aspects, market aspects, farmer institutional aspects and financial rubber plantation business aspects. However, rubber commodities downstream cover products derived from rubber. Data used including primary and secondary data. Secondary data obtained from the relevant agencies, such as BPS and plantation department. Besides, primary data is obtained from observation and focus group discussions with farmers and rubber trader. Methods used include IRR, NPV and B/C ratio. Based on the research results feasibility of investment in rubber plantations from geographical aspect tend to feasible in all regions of Muara Enim to cultivate rubber plants, but the centre area of the rubber in Muara Enim located in the Rambang Dangku district, Rambang district , Gelumbang district, Tanjung Agung district, and Lubai district. Rubber production on monthly average in all districts of Muara Enim is 999 kg of rubber per hectare productivity 1,363 tons a year. Rubber marketing aspect uses only two marketing lines. First line is from farmers to traders then to the rubber plant. This line is preferred by farmers (60%). A group of farmers who choose this line is generally farmers who do not coordinated groups (sold independently). On the second line from farmer to farmer groups further to the auction market and a rubber factory. On the second line the price is more attractive than first line, although the sales period needs longer time to wait (the sales period for rubber with a shelf life of two weeks). The amount of potential latex as raw material, crumb rubber, and the availability of a broad market exposing the chance to increase the added value of natural rubber in Muara Enim . These opportunities should be optimized by promoting the growth of downstream industries of rubber (rubber agro-industry). Keywords: Rubber, Investment Feasibility, Downstream products

    Item Type: Conference or Workshop Item (Paper)
    Subjects: H Social Sciences > H Social Sciences (General)
    Divisions: Faculty of Economics > Department of Economics and Development Studies
    Depositing User: SE, M.Si mukhlis mukhlis
    Date Deposited: 07 Apr 2017 11:50
    Last Modified: 15 Apr 2017 23:41
    URI: http://eprints.unsri.ac.id/id/eprint/7168

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