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INDONESIA
Habitat
Published by Universitas Brawijaya
ISSN : 08535167     EISSN : 23382007     DOI : -
Core Subject : Education,
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Articles 304 Documents
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Economic Resilience and High-Profitability of Independent Medium-Scale Oil Palm Smallholders: A Multi-Dimensional Feasibility Study in Indonesia Kumalasari, Dwi Apriyanti; Khusniyah; Susanto, Anton; Muis, Zeni Zaenal; Putra, Demmy Filsafa Ratna
HABITAT Vol. 37 No. 2 (2026): August
Publisher : Department of Social Economy, Faculty of Bio-Industry, Agriculture and Forestry, University of Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.habitat.2026.037.2.8

Abstract

Purpose: This study evaluates the financial feasibility and economic resilience of a medium-scale independent oil palm plantation in Indonesia. The research specifically examines a 17-hectare plantation to assess its potential as a sustainable and profitable farming model capable of supporting rural economic development. Design/Methodology/Approach: A quantitative descriptive approach was employed using investment feasibility analysis. The study applied several financial indicators, including Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PP), Revenue-Cost (R/C) Ratio, Benefit-Cost (B/C) Ratio, and Break-Even Point (BEP), to evaluate the plantation’s financial performance and operational efficiency. Data were analyzed to measure profitability, investment recovery, and long-term business sustainability. Findings: The results reveal that the plantation business is financially feasible and economically resilient. The NPV reached Rp 3,415,144,769, indicating substantial net benefits, while the IRR of 77% exceeded prevailing market interest rates. The R/C ratio of 2.57 demonstrates strong operational efficiency, and the payback period of 1.29 years indicates rapid investment recovery. In addition, the business achieved a break-even point at 241,562 kg of production, confirming its capacity to maintain profitability under medium-scale operations. Originality/Value/Novelty: This study highlights the strategic role of medium-scale (17-hectare) independent oil palm plantations as a balanced model between profitability and risk management. Unlike previous studies focusing mainly on smallholders or large estates, this research provides new empirical evidence regarding the economic resilience, financial sustainability, and rural development contribution of medium-scale independent plantations in Indonesia. The findings offer valuable insights for policymakers and stakeholders in strengthening the independent palm oil sector.
Digital Information Access, Peer Social Effect, and Combine Harvester Service Adoption: Evidence from Rice Farmers in East Java, Indonesia Mustaqim, Muhammad Izak; Syafrial; Toiba, Hery; Minh-Tu, Le
HABITAT Vol. 37 No. 2 (2026): August
Publisher : Department of Social Economy, Faculty of Bio-Industry, Agriculture and Forestry, University of Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.habitat.2026.037.2.9

Abstract

Purpose: This study examines how peer social effect (PSE) is associated with smallholder rice farmers' decisions to adopt combine harvester (CH) services in East Java, Indonesia, and tests whether this association is moderated by digital information access, household operational assets, and farmer-group membership — challenging the conventional assumption in diffusion literature that peer exposure uniformly accelerates technology uptake. Design/Methodology/Approach: Cross-sectional survey data from 300 rice farmers are analyzed using an IV-Probit model. Endogenous PSE is instrumented with average PSE per referral and a social diversity index; interaction terms capture the moderating role of digital access, car ownership, and farmer-group membership. Identification and weak-instrument diagnostics support the validity of the IV strategy. Findings: Contrary to conventional diffusion expectations, PSE shows a negative and statistically significant association with CH adoption, suggesting that local peer environments transmit caution and norm-conforming restraint rather than pro-adoption signals. Digital information access is positively associated with adoption and significantly attenuates this negative PSE-adoption association, indicating that online information helps farmers verify and act on peer-derived knowledge. Interaction effects for car ownership and farmer-group membership are positive but statistically non-significant, though farmer-group membership retains a significant direct association with adoption. Distance to CH providers and limited public Wi-Fi proximity jointly constrain adoption, reinforcing digital access as an adoption channel, while participation in Tebas (pre-harvest crop-purchase) arrangements further limits adoption incentives. Originality/Value/Novelty: The study departs from the standard diffusion assumption that peer effects uniformly accelerate technology adoption, showing instead that peer influence can restrain uptake through norm-conforming caution. By identifying digital verification as the mechanism through which this restraint is attenuated, the study links social and digital infrastructure in agricultural mechanization research — a connection largely unaddressed in prior peer-effect and technology-adoption literature — and offers a socially restrain framework for understanding mechanization service-use decisions.
Multi-Stage and Interregional Dynamics of Rice Price Transmission with Government Intervention: Evidence from Central Java and North Sumatra Aprillia, Gita; Liu, Fangyi-; Syafrial; Baladina, Nur
HABITAT Vol. 37 No. 2 (2026): August
Publisher : Department of Social Economy, Faculty of Bio-Industry, Agriculture and Forestry, University of Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.habitat.2026.037.2.12

Abstract

Purpose: This study aims to examine the multi-stage and interregional dynamics of rice price transmission in Indonesia by incorporating government intervention through BULOG rice prices. Specifically, it analyzes price linkages across the rice supply chain and compares Central Java and North Sumatra to identify regional differences in transmission patterns. Design/Methodology/Approach: This study employs monthly time-series data from 2019 to 2024, covering farmer-level harvested dry paddy prices, milling-level paddy prices, producer rice prices, BULOG consumer rice prices, and national rice prices. The analysis applies cointegration tests, Error Correction Model (ECM), Vector Autoregression (VAR), Granger causality, Impulse Response Function (IRF), and Forecast Error Variance Decomposition (FEVD) to capture long-run equilibrium, short-run dynamics, causal relationships, and shock transmission across market levels. Findings: The results indicate that rice price transmission differs across regions and supply chain stages. North Sumatra generally records higher producer and consumer rice prices, whereas Central Java exhibits greater upstream price volatility. Long-run equilibrium is found only between farmer-level and milling-level paddy prices, with adjustment speeds of 26.35% in Central Java and 25.19% in North Sumatra. Price transmission at subsequent stages is mainly short-term and dynamic. Government intervention through BULOG contributes to supply stabilization and price shock mitigation, but its influence on the overall price transmission mechanism remains limited. Originality/Value/Novelty: This study contributes to the literature by integrating a multi-stage supply chain framework, an interregional comparison, and government intervention through BULOG rice prices in a unified empirical model. The findings provide policy-relevant insights for designing more adaptive, region-specific, and market-integrated rice price stabilization strategies.
Consumer Preferences and Willingness to Pay for Cigarette Products in Indonesia Yafi, Muhammad Ali; Wardania, Nastiti; Maharani, Mutiara Ria Despita; Thohir, Nada Sofiyyah Van; Adyanti, Amanda Sekar; Mohammed, Ethar Hassan
HABITAT Vol. 37 No. 2 (2026): August
Publisher : Department of Social Economy, Faculty of Bio-Industry, Agriculture and Forestry, University of Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.habitat.2026.037.2.13

Abstract

Purpose: The consumption of cigarettes in Indonesia has been increasing on an annual basis. A shift in consumer preferences with regard to the purchasing of cigarettes has been observed. The government of Indonesia has the capacity to regulate the purchase of cigarettes with the objective of controlling cigarette consumption. The objective of study is to analyse cigarette consumer preferences in Indonesia and to ascertain the willingness of cigarette consumers in Indonesia to pay. Design/Methodology/Approach: The study utilised data from an online questionnaire, with a total 101 respondents. The questionnaire incorporated five attributes: type, content, taste, number of sticks, and price. The analysis employed was Discrete Choice Experiment (DCE) analysis through the stages of attribute identification and choice set construction. Findings: The findings were derived from the calculation of conditional logistic regression, wherein the attributes of content, taste, and number of sticks exhibited positive utility values, while the attributes of type and price demonstrated negative utility values. Consumer preferences were found to be oriented towards cigarette products that were characterised by filter type, mild content, original taste, and a pack size of 12 sticks. An increase in price was found to result in a decrease in consumption. A survey of consumer spending habits revealed that the following prices were considered affordable: Rp 34,777 for kretek cigarettes, Rp 37,045 for mild cigarettes, Rp 59,479 for original cigarettes, and Rp 46,282 for 16 sticks. The findings of this study indicate that producers can develop product strategies aligned with consumer preferences and willingness to pay, thereby enhancing market competitiveness and better targeting consumer demand. Originality/Value/Novelty: The novelty of this study lies in providing a comprehensive understanding of the cigarette attributes that are the top priorities for cigarette consumers in Indonesia when making purchasing decisions, using the DEC approach, and their willingness to pay for cigarette products, as measured by Willingness To Pay (WTP).

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