The Technical Efficiency of The Palm Oil Plantation in Jambi Province, Sumatra, Indonesia
This study tested the technical efficiency of the company's palm oil plantation in the Jambi province, Sumatra-
Indonesia using stochastic frontier production function procedure. The data collected in the last 3 years (2013-2015) random
sample of 36 against companies that are spread on the 7th District in the region by using a structured questionnaire and
schedule interviews for research. The research results reveal that the technical efficiency of the palm oil plantations ranging
11-99% with an average of 66%. This indicates a broad opportunity for Palm oil plantation companies to improve their
productivity through improved technical efficiency. Age of the estate, the ratio of the land, the status of the land, the source
of the seeds, and training the workforce found significantly associated with technical efficiency while the status of the labor,
extension, partners with the community, and the topography of the land was not significantly related to technical efficiency.
Keywords— Stochastic Frontier, Technical Efficiency, Productivity.