THE PERFORMANCE OF RUBBER AND PALM OIL PROCESSING INDUSTRY IN SOUTH SUMATRA PROVINCE, INDONESIA

Abstract

Agriculture sector is still the main economy sector in South Sumatra. Rubber and palm oil are the main commodities of the plantation sector in South Sumatra. This study aims to analyze the performance of the rubber and oil palm processing industry in South Sumatra. The data used are primary data obtained from the distribution of questionnaires in the rubber and oil palm processing industry in South Sumatra. The research sample is the rubber and oil palm processing industry in several areas that produce these superior commodities. The analysis uses three indicators to measure industry performance, namely the productivity ratio, profitability ratio, and efficiency ratio. The results show that judging from the productivity ratio, the palm oil processing industry is higher than the rubber processing industry. Industry performance as measured by the profitability ratio shows that the performance of the palm oil processing industry has a higher profitability ratio than the rubber industry. Performance as measured by the efficient ratio shows that the rubber and palm oil processing industries are equally efficient in producing. The findings of this study can be concluded that the performance of the palm oil and rubber processing industry in South Sumatra is quite efficient because of the difference between the cost per unit and the selling price per unit of two commodities.

Keywords

• productivity ratio
• profitability ratio
• efficiency ratio
• industrial performance