Article Per Year (5 Year)
p-Index From 2021 - 2026
0.23
P-Index
This Author published in this journals
All Journal Jurnal AGRISEP: Kajian Masalah Sosial Ekonomi Pertanian dan Agribisnis
Muhammad Khaliqi
Agricultural Economics Study Program, Resources and Environmental Economics Department, Faculty of Economics and Management, Institut Pertanian Bogor, Bogor, West Java, Indonesia
Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance

Published : 1 Documents Claim Missing Document
Claim Missing Document
Check
Articles

Found 1 Documents
Search

 1 
Comparing Transaction Costs and Profitability Between ISPO and Non-ISPO Oil Palm Smallholders in Asahan Regency, Indonesia Muhammad Khaliqi; Rita Nurmalina; Amzul Rifin; A Faroby Falatehan
Jurnal AGRISEP JURNAL AGRISEP VOL. 25 NO. 02 2026 (SEPTEMBER)
Publisher : Badan Penerbitan Fakultas Pertanian, Universitas Bengkulu

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31186/jagrisep.25.2.865-884

Abstract

Indonesian Sustainable Palm Oil (ISPO) certification is mandatory for Indonesia’s palm oil industry, including smallholders. However, its implementation is constrained by information asymmetry and transaction costs that affect smallholder profitability. This study compares transaction cost structures and profitability between ISPO and non-ISPO smallholders using the Brunner–Munzel (BM) test. Data were collected through interviews with 100 randomly selected smallholders, comprising 50 ISPO and 50 non-ISPO smallholders in Asahan Regency, Indonesia. The results indicate significant differences in transaction cost structures and profitability between the two groups. ISPO smallholders operate within a more formalized institutional and value chain governance framework, resulting in higher explicit transaction costs, particularly cooperative fees and compliance-related expenses. In contrast, non-ISPO smallholders face substantially higher implicit transaction costs associated with weak bargaining power and market inefficiencies in informal markets. Consequently, although ISPO smallholders incur higher explicit costs, their total transaction costs are lower because of the substantial implicit costs borne by non-ISPO smallholders. ISPO smallholders also report lower profits, primarily associated with declining yields from aging plantations approaching replanting. Nevertheless, their governance arrangements support a favorable R/C ratio. The findings highlight the importance of strengthening smallholder institutions and market governance alongside production-input support to facilitate sustainable certification.
Co-Authors A Faroby Falatehan Amzul Rifin Rita Nurmalina