ORGANIZATIONAL HEALTH REVIEW ON FINANCIAL AND PRODUCTION ASPECTS POST-REPLANTING (CASE STUDY: TEKAD MANDIRI PALM OIL PLASMA COOPERATIVE)

Abstract

ABSTRACT

 Introduction: This study aims to examine the impact of replanting programs on productivity and financial health aspects of the Palm Oil Plasma Cooperative (KPKS). Background: This research is significant due to the fact that 2.4 million hectares of palm plantations require replanting, as the plants are over 15 years old. Data: The study uses KPKS financial reports from 2020 to 2023, post-replanting production data from 2023, and Farmer Exchange Rate (FER) data. Methods: The method applied is a case study with an emphasis on KPKS that has implemented replanting. Results: The study reveals an increase in production after replanting, showing a significant effect of 0.942% on farmer welfare; however, production levels have not reached the ideal productivity targets. Financial health analysis categorizes the cooperative as "fairly healthy" with a score of 77.5 in 2020, shifting to "under supervision" in 2021 with a score of 61.5 and remaining in this category in 2022 and 2023 with scores of 63.5 and 53.8, respectively. Conclusion: These findings suggest further evaluation and improvements are needed in the replanting program, particularly focusing on productivity enhancement and financial health monitoring. Additional findings reveal that the replanting program's financing scheme heavily burdens palm oil farmers.

Keywords: Palm Oil Plasma Cooperative, replanting, productivity, financial health, farmer welfare.