Cost of production and profitability analysis of gambier business in Babat toman Subdistrict, Musi Banyuasin Regency

Gambier (Uncaria gambier Roxb.) is a strategic plantation commodity in Indonesia with significant economic and industrial value. However, its productivity and efficiency at the farmer level remain relatively low and fluctuating, particularly in Babat Toman Subdistrict, Musi Banyuasin Regency, the only gambier production center in South Sumatra. This study aims to analyze the cost structure, cost of production, and profitability of gambier farming. The research employed a case study method with a quantitative descriptive approach, involving 50 respondents consisting of farmers and other actors in the gambier value chain. Data were collected through interviews, observation, and documentation, and analyzed using production cost and cost of production formulas. The results show that the average total production cost is IDR 7,662,933 per cultivated area per year, consisting of fixed costs of IDR 3,147,833 and variable costs of IDR 4,515,100, with pesticides and seeds as dominant inputs. Production is dominated by liquid gambier (85%) compared to solid gambier (15%). The cost of production is IDR 18,250 per stick for solid gambier and IDR 3,130 per liter for liquid gambier. Compared to the prevailing selling price of IDR 55,000–60,000 per stick, gambier farming generates a positive margin, indicating profitability. These findings suggest that gambier farming in the study area is economically feasible, efficient, and has strong potential for further development. Improving input management and production efficiency is essential to enhance farmers’ income and ensure the sustainability of the gambier agribusiness.