REGIONAL DIFFERENCES IN TECHNICAL EFFICIENCY OF INDONESIAN OIL PALM SMALLHOLDERS

Abstract

The paper compares technical efficiencies and technological gap ratios for oil palm smallholders in islands/regions of Indonesia. A stochastic metafrontier model was applied to estimate the technological gap and compare on-farm technical efficiency. The results provide empirical evidence of heterogeneity in production technology across smallholders located in different regions. The results may provide support for specific agricultural policy regionally, in terms of supported farmer schemes and improvement of managerial capabilities of farmers on using of resources efficientl