Majority of oil palm plantationss in South Sumatra are managed in NES (Nucleus Estate Smallholders)
model, in each NES a nucleus firm foster and work together with smalholders farmers in producing FFB from
their own plantations. All of FFB are delivered to palm oil factory belongs to the nucleus firm. This research, however, focused on the smallholder plantations both in dry and wet land, since several problems in cultivation and managements are still occuring until recently at their plantations but only minor problems at the nucleus firm plantation.
The representative research locations were Karang Jaya and Muara Rupit Sub Districts in Musi Rawas Regency for dry land oil palm plantations, and Banyuasin III and Talang kelapa Sub Districs in Banyuasin Regency for the wet land plantations. Since each farmers on average cultivates 2 hectares plantation uniformly, from each regency were selected 30 farmers using multistage sampling method.
Quantitative data collected from the survey were processed and calculated using standard mathematical formula for measuring cost, revenue, and profit as follows :