A POTENTIAL VALUE CHAIN DEVELOPMENT OF RUBBER SEEDS (HEVEA BRASILIENSIS) INTO BIODIESEL IN BANYUASIN DISTRICT, SOUTH SUMATERA

• Main Author: Damika Putri, Adela
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75834
• Institution: Institut Teknologi Bandung

<p align="justify">Banyuasin Regency, South Sumatera, is one of the districts with the largest rubber plantation areas in Indonesia (101,661 hectares). Rubber price fluctuations tend to weaken, causing uncertainty in the incomes of rubber farmers. Rubber seed is a part of the rubber plant that is underutilized, but contains approximately 20-50% oil, which can be used as a raw material for biodiesel. The development of the rubber seed value chain creates a better livelihood for rubber farmers, who are currently facing various challenges. Therefore, this study aims to identify household asset conditions and farmers' livelihood strategies, determine the potential of the rubber seed value chain for biodiesel, analyze the initial financial feasibility of processing rubber seed into biodiesel, and analyze the effect of the potential rubber seed value chain for biodiesel on farmers' income. The sampling method uses snowball sampling to obtain information from all stakeholders who are potentially involved in the value chain of rubber seeds, and stratified random sampling to obtain information related to farmers’ livelihood conditions and farmers’ perspectives on rubber seed prices. Data were analyzed using a sustainable livelihood framework for farmers' livelihood conditions, value chain activities using the Kaplinsky and Morris value chain model, and financial feasibility using B/C ratio analysis. Based on research studies, the average livelihood assets in Banyuasin district are 55.68% in the medium category, and the maximum resource strength is found in natural capital (68.86%). Most household livelihood strategies in Banyuasin Regency use survival strategies. The rubber seed value chain consists of six core activities, with four core actors. The governance relationship formed was market governance. The added value of rubber seeds was Rp. 4,937/kg (64%). The initial financial feasibility analysis results in a B/C ratio of 1.91. This shows that the processing of rubber seeds into raw materials for biodiesel is feasible because B/C > 1 is obtained. Rubber seed value chain activity can increase farmers' income through Rp. 3,850,000/year (22.9%).