IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2018-05-18.html
   My bibliography  Save this article

The Role of Farm Household Saving for Oil Palm Replanting at Paser Regency, East Kalimantan

Author

Listed:
  • Mariyah Mariyah

    (Department of Agribusiness, Faculty of Agriculture, Mulawarman University, Jl. Paser Balengkong No. 1 Samarinda City, East Kalimantan)

  • Yusman Syaukat

    (Departement of Resource and Environmental Economics, Faculty of Economics and Management, Bogor Agricultural University, Bogor-West Java Indonesia)

  • Sri Hartoyo

    (Departement of Economics, Faculty of Economics and Management, Bogor Agricultural University, Bogor-West Java Indonesia,)

  • Anna Fariyanti

    (Department of Agribusiness, Faculty of Economics and Management, Bogor Agricultural University, Bogor-West Java Indonesia,)

  • Bayu Krisnamurthi

    (Department of Agribusiness, Faculty of Economics and Management, Bogor Agricultural University, Bogor-West Java Indonesia)

Abstract

Oil palm replanting is a long-term investment decision and requires relatively large amount of capital. Decision of farm households for oil palm replanting was determined by their economic condition and behavior on production and consumption. The objectives of this research are to analyze the role of household saving behavior for oil palm replanting and to determine the factors affecting household saving for replanting purpose. The research conducted at Paser Regency, East Kalimantan Province. Data were collected from a survey to 113 households with the age of oil palm trees between 21 and 33 years which are purposively sampled. The role of household saving for replanting was measured by economic ability of replanting, which is the ratio between replanting savings and the total requirement for replanting costs. The factors affected household saving for replanting was analyzed using a multiple regression method. The descriptive results of the study showed that 46.02% of the households'sampled had savings for replanting, while the rest 56.98% had no saving. Households' economic ability for replanting was only 10.81%, very far from the required costs. The factors that could household saving were land area to be replanted, total household income, and credit of household for non-replanting purpose; while the age of oil palm, household size, expenditure per capita and loan repayment variables could reduce the saving. The implication of this research are: Households should plan and implement gradual replanting program; and they should increase the savings, particularly some years before achieving the optimal replanting age.

Suggested Citation

  • Mariyah Mariyah & Yusman Syaukat & Sri Hartoyo & Anna Fariyanti & Bayu Krisnamurthi, 2018. "The Role of Farm Household Saving for Oil Palm Replanting at Paser Regency, East Kalimantan," International Journal of Economics and Financial Issues, Econjournals, vol. 8(5), pages 124-130.
    • Handle: RePEc:eco:journ1:2018-05-18
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijefi/article/download/6898/pdf
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijefi/article/view/6898/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bryant,W. Keith & Zick,Cathleen D., 2006. "The Economic Organization of the Household," Cambridge Books, Cambridge University Press, number 9780521801416, October.
    2. Bryant,W. Keith & Zick,Cathleen D., 2006. "The Economic Organization of the Household," Cambridge Books, Cambridge University Press, number 9780521805278, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fitri Nurfatriani & Ramawati & Galih Kartika Sari & Heru Komarudin, 2019. "Optimization of Crude Palm Oil Fund to Support Smallholder Oil Palm Replanting in Reducing Deforestation in Indonesia," Sustainability, MDPI, vol. 11(18), pages 1-16, September.
    2. Zhao, Jing & Elmore, Andrew J. & Lee, Janice Ser Huay & Numata, Izaya & Zhang, Xin & Cochrane, Mark A., 2023. "Replanting and yield increase strategies for alleviating the potential decline in palm oil production in Indonesia," Agricultural Systems, Elsevier, vol. 210(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jara-Díaz, Sergio & Rosales-Salas, Jorge, 2017. "Beyond transport time: A review of time use modeling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 209-230.
    2. Michael Walden, 2012. "Will Households Change Their Saving Behaviour After the “Great Recession”? The Role of Human Capital," Journal of Consumer Policy, Springer, vol. 35(2), pages 237-254, June.
    3. XXX, Shuya & Iwata, Shinichiro, 2012. "Fertility and the user cost of home ownership: Evidence from regional panel data," MPRA Paper 37387, University Library of Munich, Germany.
    4. Paz, Jorge & Arévalo, Carla, 2014. "Nivel y desigualdad por género en el uso del tiempo en la Argentina. Una nota introductoria [Gender inequality in the use of time in Argentina. An introductory note]," MPRA Paper 56085, University Library of Munich, Germany.
    5. Hyrum Smith & Michael Finke & Sandra Huston, 2012. "Financial Sophistication and Housing Leverage Among Older Households," Journal of Family and Economic Issues, Springer, vol. 33(3), pages 315-327, September.
    6. Herrera Gómez, Marcos & Cid, Juan Carlos & Paz, Jorge Augusto, 2012. "Introducción a la econometría espacial: Una aplicación al estudio de la fecundidad en la Argentina usando R [Introduction to Spatial Econometrics: An application to the study of fertility in Argent," MPRA Paper 41138, University Library of Munich, Germany.
    7. Luca Zanin, 2017. "The effects of various motives to save money on the propensity of Italian households to allocate an unexpected inheritance towards consumption," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(4), pages 1755-1775, July.
    8. Rosales-Salas, Jorge & Jara-Díaz, Sergio R., 2017. "A time allocation model considering external providers," Transportation Research Part B: Methodological, Elsevier, vol. 100(C), pages 175-195.
    9. Sonya Britt & Sandra Huston, 2012. "The Role of Money Arguments in Marriage," Journal of Family and Economic Issues, Springer, vol. 33(4), pages 464-476, December.
    10. Atte Oksanen & Mikko Aaltonen & Kati Rantala, 2015. "Social Determinants of Debt Problems in a Nordic Welfare State: a Finnish Register-Based Study," Journal of Consumer Policy, Springer, vol. 38(3), pages 229-246, September.
    11. Luca Zanin, 2016. "On Italian Households’ Economic Inadequacy Using Quali-Quantitative Measures," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(1), pages 59-88, August.
    12. Dibb, Sally & Merendino, Alessandro & Aslam, Hussan & Appleyard, Lindsey & Brambley, William, 2021. "Whose rationality? Muddling through the messy emotional reality of financial decision-making," Journal of Business Research, Elsevier, vol. 131(C), pages 826-838.
    13. Ivan-Damir Anić & Sonja Radas, 2016. "Boundaries for the Retail Geographical Market and Factors Influencing Shoppers' Mobility," Journal of Consumer Affairs, Wiley Blackwell, vol. 50(2), pages 315-341, July.
    14. Agus Surachman & Hartoyo, 2015. "Parental Investment and Poverty Dynamics in West Java, Indonesia," Journal of Family and Economic Issues, Springer, vol. 36(3), pages 340-352, September.
    15. Cathleen Zick & Robert Stevens, 2011. "Time Spent Eating and Its Implications for Americans’ Energy Balance," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 101(2), pages 267-273, April.
    16. Victoria Vernon, 2010. "Marriage: for love, for money…and for time?," Review of Economics of the Household, Springer, vol. 8(4), pages 433-457, December.
    17. Robert B. Nielsen & Martin C. Seay & Melissa J. Wilmarth, 2018. "The Receipt of Government Food Assistance: Differences Between Metro and Non-Metro Households," Journal of Family and Economic Issues, Springer, vol. 39(1), pages 117-131, March.
    18. Markus Gehrsitz, 2014. "Looks and Labor: Do Attractive People Work More?," LABOUR, CEIS, vol. 28(3), pages 269-287, September.
    19. Dolores Moreno-Herrero & Manuel Salas-Velasco & José Sánchez-Campillo, 2017. "Individual Pension Plans in Spain: How Expected Change in Future Income and Liquidity Constraints Shape the Behavior of Households," Journal of Family and Economic Issues, Springer, vol. 38(4), pages 596-613, December.
    20. Gallagher, Paul W. & Sleper, Daniel, 2016. "The market and consumer welfare effects of mid-level ethanol blends in the US fuel market," Energy Policy, Elsevier, vol. 98(C), pages 149-159.

    More about this item

    Keywords

    saving; farm household; oil palm; replanting.;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2018-05-18. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.