This research objective is to analyze the competitiveness of palm oil farming in Waway Karya Sub-District ofLampung Timur District. This research was carried out in Mekar Karya Village. The respondents of thisresearch were 26 farmers out of 154 palm oil farmers who were chosen using simple random sampling basedon the age of plants. The competitiveness was analyzed by using PAM (Policy Analysis Matrix). The studyshowed palm oil farming in Lampung Timur District has private and social gains of revenue ofRp183,222,946.00 and Rp202,619,588.00. Costs consisted of tradable inputs and domestic factors.Domestic factors included non-tradable inputs, labor, and land rates. Costs incurred for palm oil farming onprivate prices for tradable inputs, respectively were Rp16,035,073.00, Rp51,285,620.00, Rp23,014,385.00,and Rp39,336,483.00 while the social price of each was Rp27,144,046.00, Rp51,285,620.00,Rp23,014,385.00, and Rp39,336,483.00. Private and social profits acceptable were Rp53,551,385,00 andRp61,839,054.00. The study concluded PCR (Private Cost Ratio) was 0.68 as the competitive advantage andDRCR (Domestic Resource Cost Ratio) was 0.65 as the comparative advantage. In conclusion, palm oilfarming in the Waway Karya Sub-district of Lampung Timur District is very competitive farming.