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Yoshio Kawamura
Kyoto Prefecture College of Agriculture
Agriculture, Biological Sciences & Forestry

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Can Access to Social Facility Help Poverty Reduction in Agricultural Sector? Evidence from Indonesia Muhammad Arsyad; Yoshio Kawamura; Syarifuddin Yusuf; Muh. Hatta Jamil; Andi Nuddin; Alimuddin Laapo
International Journal of Agriculture System VOLUME 5 ISSUE 2, DECEMBER 2017
Publisher : Hasanuddin University

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (991.844 KB) | DOI: 10.20956/ijas.v5i2.381

Abstract

Poverty in agricultural sector is still becomes a serious issue in developing country, and Indonesia is no exception. Our previous study was focusing on poverty and income (income poverty). This paper, however, deals with a substantive question, can access to social facility (non-income) help poverty reduction in agriculture? The study (also) utilized previous model of Dimensionality Test, Factor and Path Analysis to answer the question. The results show that the higher government transfer source income in terms of Social safety Net Program, the more money for smallholders will be. This leads us to argue that transfer income from the government to the smallholder community can be still considered in maintaining smallholders’ daily life, means helping them move out poverty. The better access to social services such as primary public health center (called PUSKESMAS), clean water supplied by PDAM (Local Government Division for Drinking Water Affairs) and secondary school is, the higher the household income will be. Thus, if PUSKESMAS, primary and secondary schools as well as clean water sources are nearer, the less time and money will be spent to travel, then the more household income at hand will be saved. In other words, distance and degree of utilization appear to be a crucial part of these interpretations above. Therefore, it is reasonable to say that the better the access to social services such as public health center, schools and public clean water, the more household income will be and in turn it will alleviate the poverty of smallholders. It is clear that providing better access to social facility can help poverty reduction in agricultural sector.
Agricultural Development-Marketing Nexus: Is Tengkulak truly Enemy of Smallholders in Indonesian Rural Area? Muhammad Arsyad; Heliawaty Heliawaty; Yoshio Kawamura; Syarifuddin Yusuf
International Journal of Agriculture System VOLUME 6 ISSUE 1, JUNE 2018
Publisher : Hasanuddin University

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (401.745 KB) | DOI: 10.20956/ijas.v6i1.1498

Abstract

This paper notes that a serious difficulty of smallholders in Indonesia is improving marketing networks of agricultural products. The marketing network in rural area is dominated by the brokers (called tengkulak). Smallholders do not have options to finance their production except for borrowing capital input from the tengkulak. Then the tengkulaks’ money will be repaid by smallholders in terms of agricultural products. It is true that smallholders get capital input, as well as daily life desires easily, on one hand. However, it also true that smallholders have no choice and they are ‘choked’ by the tengkulak in terms of price discrimination on the other hand. This phenomenon affects smallholder’s income. However, the tengkulak plays an important role in smallholder community. The first role is Financial/Capital Input provider. The tengkulak provides access to capital inputs for smallholders who are not able to get formal credit (banks). The second role is Production Process. The tengkulak facilitates smallholders in providing agricultural inputs. The third role is of Post-Production/ Marketing. The tengkulak enables smallholders to sell their agriculture products easily. The forth is Socio-religious role. Smallholders need money for schooling fees, medical care, donation for socio- religious activity by borrowing money from tengkulak without any administrative procedures. These facts above depicts that tengkulak is not truly enemy for smallholders.
Co-Authors Alimuddin Laapo Andi Nuddin Heliawaty Heliawaty Muh. Hatta Jamil Muhammad Arsyad Muhammad Arsyad Syarifuddin Yusuf Syarifuddin Yusuf