FINANCIAL ANALYSIS ON AGROFORESTRY SYSTEM OF COFFEE WITH MARRANGO TREE (Azadirachta excelsa Jack.) IN REJANG LEBONG REGENCY, BENGKULU PROVINCE, INDONESIA

Indonesian Journal of Forestry Research

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Title FINANCIAL ANALYSIS ON AGROFORESTRY SYSTEM OF COFFEE WITH MARRANGO TREE (Azadirachta excelsa Jack.) IN REJANG LEBONG REGENCY, BENGKULU PROVINCE, INDONESIA
 
Creator Premono, Bambang Tejo
Lestari, Sri
 
Subject Agroforestry; coffee; financial analysis; marrango tree
 
Description Marrango tree (Azadirachta excelsa Jack.) has been introduced as a shade tree for coffee plantations that also produces valuable timber for construction and energy. This paper analyzed the financial aspect of an agroforestry system of marrango tree and coffee plantations, including observations of land management, costs and revenues, financial feasibility and sensitivity analysis. The study was conducted in Rejang Lebong Regency, Bengkulu Province through field observations and interviews. Data was collected through direct observations, household surveys and in-depth interviews of several key actors to deepen the information and verify the collected data. Descriptive quantitative and financial analyses were employed to analyze the data. The results showed that the land management of marrango tree and coffee plant agroforestry in Rejang Lebong Regency was conducted in the traditional way. However, the agroforestry system of coffee plants and marrango tree was financially feasible at the level of 8% discounted rate (NPV = 76,250,582 IDR; BCR = 2.28 and IRR = 22%). This agroforestry system also has good resistance to changes in coffee price, coffee production and marrango tree price. The agroforestry system remained feasible although if coffee production declined by 50%, coffee price decreased up to 40%, and timber production declined up to 50%.  The changes in coffee production and price were the most influential factors on the feasibility of the agroforestry system. This agroforestry system is beneficial for the farmers. Hence, the local government should encourage the community to apply this system.
 
Publisher Secretariat of Forestry Research and Development Agency
 
Contributor
 
Date 2018-04-30
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion

 
Format application/pdf
 
Identifier http://ejournal.forda-mof.org/ejournal-litbang/index.php/IJFR/article/view/2300
10.20886/ijfr.2018.5.1.45-56
 
Source Indonesian Journal of Forestry Research; Vol 5, No 1 (2018): Indonesian Journal of Forestry Research; 45-56
2406-8195
2355-7079
 
Language eng
 
Relation http://ejournal.forda-mof.org/ejournal-litbang/index.php/IJFR/article/view/2300/4225
 
Rights Copyright (c) 2018 Indonesian Journal of Forestry Research
http://creativecommons.org/licenses/by-nc-sa/4.0
 

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