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The study aims in term of upstream perspective: to find out and analyze the effort that should be undertake in order to address the difference of of the cost of production of fresh fruit bunches (FFB) by government regulations, oil palm farmers and the company, if there is no win-win solution effort. From the downstream perspective: to find out and analyze the duties of the businessman in term of the payment from the buying to the selling stage. This research study employed (1) field and (2) library research with qualitative and quantitative data. Quantitative data was analysed with value chain mapping in the upstream and downstream along with . Judgment Sampling Purposive Sampling. Based on that criterion, the researchers decided to choose 2 samples, namely PT Buana Karya Bhakti palm oil company that sells Crude Palm Oil (CPO) and PT Gawi Makmur Kalimantan that sells Palm Kernel (PKO) in South Kalimantan. The value chain analyzes results show in term of upstream, the palm farmer should increase the quality of FFB which is indicated by the value of high-yield oil palm. Quality of FFB will greatly affect the quality of CPO and PKO resulting from the processing of FFB. Good of FFB product will greatly affect the value of the yield of palm oil, of which varieties of plants, plant maintenance, quality and procedures harvesting of FFB, transporting and processing in the factory. An understanding of Good Agriculture Practices is necessary for farmers to be able to produce high quality oil palm fruit. From downstream aspects: the palm businessman have a duty to paid at the time the operation began, it means since purchasing to sales process, based on Government Regulation No: 14/Permentan/OT.140/2/2013 concerning on pricing guidelines of FFB purchase palm oil plantation production
Keywords: value chain, CPO, palm kernel, palm oil, FFB |
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