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Open Journal of Forestry 2012. Vol.2, No.4, 252-256 Published Online October 2012 in SciRes (http://www.SciRP.org/journal/ojf) /10.4236/ojf.2012.24031 Assessment of Profitability of Land Use Systems in Tanjung Jabung Barat District, Jambi Province, Indonesia Muhammad Sofiyuddin, Arief Rahmanulloh, S. Suyanto World Agroforestry Center (ICRAF Southeast Asia Program), Bogor, Indonesia Email: m.sofiyuddin@ Received July 23rd th th , 2012; Revised August 26 , 2012; Accepted September 10 , 2012 The purpose of the research was to compare the profitability of existing land uses in Tanjung Jabung Barat, Jambi province, Indonesia, for formulating a strategy to reduce emissions from deforestation and degradation (REDD). Net Present Value was used for comparing profits of different types of investment (e.g. different type of land use). Rapid Rural Appraisal was used to gather information on farm budget data for each land use, including prices, production, labor and other input. The results of the profitability analysis showed that all land uses, both on mineral soil and peat land, were profitable. Oil palm, both in large plantations and smallholder gardens, was the most profitable land-use system. However, the profit- ability of smallholder oil palm on peatland was lower than on mineral soils yet oil palm was still more competitive than rubber on mineral soils. T