Abstract:
Agroforestry of oil palm and agarwood is proper to reduce the farmer economic risk, nevertheless the financial contribution is not known definitively yet. Farmer preference put the economic reasoning as a priority on landuse election. The aims of the research were to know : (1) profitability (NPV), internal rate of return (IRR) and net benefit cost ratio (Net B/C) of oil palm-agarwood agroforestry model, (2) sensitivity of oil palm-agarwood agroforestry, and (3) additionality of farmer income from oil palm-agarwood agroforestry. Research is conducted on 10 ha of oil palm-agarwood garden at Kembang Damai Village, Pagaran Tapah Darussalam Sub District, Regency of Rokan Hulu, Riau Province. Data is collected by observation, interview and recording technique toward process of oil palm-agarwood agroforestry establishment. Data analysis used the financial analysis method by counted Net Present Value (NPV), internal rate of return (IRR) and net benefit cost ratio (Net B/C). The results of the research showed that profitability of oil palm-agarwood agroforestry on 1ha and 25 years investment period was NPV of Rp. 395.884.356 (or Rp. 15.835.374/ha/year and Rp. 1.319.615/ha/month) with IRR 4,05% and Net B/C at 55,16% or 5,43. Indention agarwood on oil palm garden able to increasing value until 3,23%. Based on this research can be suggestions are : (1) inserting agarwood on the oil palm garden able to called as an agroforestry system development model which profitable and will be help for financing oil palm replanting, (2) planting and harvesting patterns arrangement can be conducted in order to improve the farmer income, and (3) agarwood planting should be started on 6 years old oil palm plantation, so the planting rotation of agarwood will be conducted twice per period of oil palm investment.
