Open AccessUnbalanced partnership scheme between community plantation forest and company: study case in West Kotawaringin, Central Kalimantan, Indonesia
Author(s) -
Subarudi,
Adi Gangga,
Galuh Karin Puspita Sari
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.179
H-Index - 26
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/917/1/012027
Subject(s) - general partnership , position (finance) , prosperity , business , context (archaeology) , revenue , profit (economics) , agricultural economics , finance , economics , economic growth , geography , archaeology , microeconomics
The changing regulation for community plantation forest (CPF) from social forestry point of view into a business-oriented context has no significant effects on its capital strengthening. Limited capital becomes an obstacle for farmers to develop the CPF area. It encourages the CPF to conduct a partnership scheme with the nearest company in its working area. The objectives of the research are to evaluate the partnership scheme and to make improvements from the evaluation results. The research method used is descriptive analysis and quantitative approach. The results show that many problems have been raised during the partnership implementation as farmers have no bargaining position, the company’s log price is not feasible, and no explanation on how the price is determined. The profit margin of the CPF is the lowest (Rp98,000/ton wood) or 11.8% among the parties involved in the wood plantation businesses. Therefore, the partnership scheme must be improved for better prosperity of CPF farmers through shifting from partnership CPF to self-sufficient CPF. This shifting provides a high bargaining position and better revenue for the CPF farmers.