Analysis of factor that influences decision making for the implementation of the integration system of oil palm and cattle in Serdang Bedagai Regency plantations

Abstract

Integration of oil palm and cattle is the union of oil palm plantation and beef cattle cultivation businesses to overcome the problem of waste (zero waste), but this system is not implemented on plantations due to various factors. This study aims to assess the plantation decision-making process and to analyse the factors that influence the decision making of oil palm plantations for the implementation of the integration system of oil palm and cattle in Serdang Bedagai Regency plantation. The research used a descriptive method, and the data were analysed using binary logistic regression analysis. The result of this research showed that oil palm plantations in Serdang Bedagai Regency carrying out integration were 41 plantations, while those who did not carry out integration were 25 plantations. Wald test results showed, technical factors and risk factors those are cattle damage plants, Ganoderma, and horn beetles (Oryces rhinoceros) (P<0.05) had a significantly affected the decisions of the plantation. It is concluded that Factors of age, experience, authority, technical, economic, and institutional factors had a positive influence on the decisions of the plantation. Meanwhile, the risk factors had a negative influence on the decisions of the plantation.