How to cite:
Bambang Arwanto. (2022). Poverty Reduction Policy of Small
Farmers and Culturers Towards Explpoitative Middlery
Intermediation. Journal Eduvest. Vol 2(8): 1.443-1.457
E-ISSN:
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Eduvest –Journal of Universal Studies
Volume 2 Number 8, August, 2022
p-ISSN 2775-3735-e-ISSN 2775-3727
POVERTY REDUCTION POLICY OF SMALL FARMERS AND
CULTURERS TOWARDS EXPLPOITATIVE MIDDLERY
INTERMEDIATION
Bambang Arwanto
Universitas Kutai Kartanegara, Indonesia
Email: bambangarwanto@unikarta.ac.id
ABSTRACT
The poverty process creates specific rural poverty groups in a
complex and multidimensional phenomenon, so that no valid
anti-poverty program can apply equally to every time and
every region, one of the specific rural poverty community
groups created by the poverty process is Small Farmers and
Cultivators, the source of their poverty is due to low access to
land and capital, the alternatives available to them in the labor
market are very small with low wages, precarious work, high
unemployment rates, and limited land, so they experience
exploitation by middlemen. intensive. The type of research
used is descriptive research, the approach used is a case study
using the PRA (Participatory Rural Appraisal) method. In this
case, the case study is the search for problems (problem
structuring) of the sources and processes behind the poverty of
the farming community in Jonggon Kampung Village and the
policies that need to be implemented in response to these
problems. The research location was conducted in Kutai
Kertanegara Regency, East Kalimantan Province, the unit of
analysis of this study was at the village level, the determination
of the unit of analysis was carried out intentionally according
to the research objectives (purposive), namely villages
according to the classification of poor villages with a functional
group approach of people who are vulnerable to the poverty
process. rural areas, namely groups of small farmers and
sharecroppers. The results of the study confirm the policies
that need to be implemented in an effort to increase the
Bambang Arwanto
Poverty Reduction Policy of Small Farmers and Culturers Towards Explpoitative
Middlery Intermediation 1.444
productivity of poor farmers in Jonggon Kampung Village,
namely; controlling the shrinkage of functional land,
increasing the application of appropriate technology, capital
assistance and increasing access to marketing as alternative
selected policies to be recommended.
KEYWORDS
Policies, Alleviation, Exploitative Middlemen, Poverty,
Small Farmers, Cultivators
This work is licensed under a Creative Commons
Attribution-ShareAlike 4.0 International
INTRODUCTION
Poverty can be interpreted in two approaches. First, an approach that emphasizes
the notion of subsistence, namely subsistence poverty which assumes that poverty is a
matter of the inability to obtain the income needed to meet the basic needs of food, clothing
and some other basic needs, while the second understanding, poverty is seen as a relative
deprivation is a situation where what is expected is incompatible with what is realized
(Alkire & Foster, 2011).
In an effort to understand the phenomenon of poverty, Valentine in (Mauro et al.,
2018) put forward the theory that poverty is a structural problem. The argument of this
theory is that the poor are structurally different from other groups in that they have
pathological elements, distortions and incompleteness in life which are segmented into the
lower class. All of this is caused by the structural process of a system as a whole, their
poverty position is preserved by the system by blocking distribution. resources that can
bring them out of poverty, the solution to poverty is done by making radical changes to the
structure of society so that their access to the distribution of resources becomes open and
easier (Alkire & Santos, 2013).
In many cases the poverty experienced by the community stems from their low
access to productive resources such as water, land, employment opportunities,
capital/capital, training, education, technology, subsidies, policies that take sides,
marketing and environmental carrying capacity (Baulch & Hoddinott, 2000; Eraydin &
Taşan‐Kok, 2014). Access of the poor to these productive resources must be facilitated to
increase productivity. This is important as an effort to bring them out of poverty.
According to (Marris & Rein, 2018) rural community poverty is an integrated concept
or integrated poverty which has five dimensions, namely proper poverty, powerlessness,
vulnerability to emergency situations, dependency, and isolation both geographically and
geographically. socially. In general, the dimensions of poverty are not perfect. Because,
not all of the five dimensions of poverty must be experienced by the rural poor in
developing countries, that some of these dimensions are experienced and some are not
(Gradín et al., 2012).
In an effort to accelerate the rate of regional growth in line with the aspirations of
the developing community, taking into account the development of the population, area,
economic potential, and the increasing workload and volume of work in the fields of
government, development and society through Law No. 47 of 1999 Kutai Regency divided
into 3 regencies and 1 city, namely: Kutai Kertanegara Regency, East Kutai Regency, West
Kutai Regency and Bontang City.
After the expansion, the concentration of the distribution of the poor population was
almost half in Kutai Kertanegara Regency (45.31%), a quarter of which was in East Kutai
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Regency (24.00%) while in West Kutai it was 15.13% and Bontang City was 15.56%. The
data confirms that Kutai Kertanegara Regency has the most serious problem regarding the
poverty of its people, because almost half of the poor people live in Kutai Kertanegara
Regency which is spread over 18 sub-districts. The number of poor people in Kutai
Kertanegara Regency after the division was 54,499 people from the total population of
463,440 people or around 11.76% of the total population, the distribution of the poor
population was concentrated in rural areas by 95.6% and in urban areas only 4, 4%.
The concentration of the poor in the rural areas of Kutai Kartanegara Regency is
closely related to the development gap between cities and villages (Arwanto, 2022),
resulting in a lack of infrastructure, communication, technology, as well as market
coverage, education, health, lighting, clean water in rural areas. as the basis for regional
development. Due to the lack of potential and village facilities, housing facilities, and
environmental facilities, many villages in Kutai Kertanegara Regency are in the category
of poor villages, the number of poor villages in Kutai Kertanegara Regency after the
division reached 51.6% of the total number of villages.
To find out which rural community groups are vulnerable to the poverty process, the
types and processes that create these poor groups can be done by mapping rural functional
groups that have a high level of vulnerability to various interventions and policy changes
that are specific poor groups (Schroeder et al., 2018; Walker & Day, 2012), this functional
group was chosen because it is the group most likely to be modified through various policy
alternatives to increase their productivity in order to get out of poverty, the poor group in
the discussion of this study are small farmers who own land narrow (0.5- 3 Ha) and landless
farmers (cultivators). The concentration of functional groups of poor farmers is in Muara
Muntai District, Bangun City, Muara Wis, Sebulu, Tenggarong, Loa Kulu, Loa Janan,
Sanga-Sanga, with the highest concentration in Loa Kulu District and the unit of analysis
taken is Jonggon Kampung Village for mapped poor farmers with land area of 0.5 – 3 Ha
and farmers without land (cultivators).
This study will provide a policy formulation in an effort to increase the productivity
of rural poor farming communities through a rural-specific poor group approach, namely
small farmers and sharecroppers in dealing with middlemen who exploit their economy,
assuming that the rural poverty situation is not the same, both groups created by the process
of poverty, types, and processes that make the community groups of small farmers and
cultivators potential to be poor, so that the anti-poverty program provided does not have to
be uniform both in number and in treatment.
RESEARCH METHOD
The type of research used is descriptive research, the approach used is a case study
using the PRA (Participatory Rural Appraisal) method (Chambers, 1994). In this case, the
case study is the search for problems (problem structuring) of the sources and processes
behind the poverty of the farming community in Jonggon Kampung Village, as well as
policies that need to be implemented in response to these problems. The location of the
research is in Kutai Kertanegara Regency, East Kalimantan Province, which is used as the
object of research is the process of making alternative policies in an effort to increase the
productivity of poor farming communities in Kutai Kertanegara Regency.
The unit of analysis of this research is at the organizational level, namely the village,
the determination of the unit of analysis is carried out intentionally according to
Bambang Arwanto
Poverty Reduction Policy of Small Farmers and Culturers Towards Explpoitative
Middlery Intermediation 1.446
the research objectives (purposive), namely poor villages according to the classification of
poor villages, the Presidential Instructions are underdeveloped villages which are
approached based on functional groups of people who are vulnerable to the poverty process,
namely farmer groups, so that the unit of analysis for the poor agricultural village, namely
Jonggon Kampung, was chosen from the sub-district of farmer concentration, namely Loa
Kulu District.
RESULT AND DISCUSSION
The Poverty Situation of Jonggon Kampung Village
Jonggon Kampung village is an analytical unit that is taken as an example of a poor
agricultural village in Kutai Kertanegara Regency, has an area of ± 39,253 Ha, an average
rainfall of 300-4500 mm/year, has a height of 400-800 M with a limit of 400-800 m above
sea level. -The boundaries of the area are as follows:
North side: Jonggon Jaya Village,
South side: Penajam District (Sand District)
West side: ITCI HPH area (Sand Regency)
East side: Sei Payang Village
The distance of Jonggon Kampung Village from the center of Loa Kulu District is
62 Km or within 3 hours of traveling by land, with poor road conditions. In the rainy season,
the location of Jonggon Kampung Village can only be reached by foot, because most of the
road is a dirt road without paving and overgrown with shrubs. Jonggon Kampung Village
does not have health facilities such as Puskesmas or Sub Health Center, does not have
health workers who live in the village, does not have health facilities. means of
communication, does not have lighting / electricity / Diesel facilities, the only educational
facilities available are elementary schools.
To clarify the poverty situation of Jonggon Kampung Village, the table below will
show the poverty characteristics of Jonggon Kampung Village as follows:
Table 1 Characteristics of poverty in Jonggon Kampung
No
Situation
1
Self-subsistent
2
dirt road
3
Primary sector, farmers (68%)
4
4 ha
5
62 km/ 3 hours
6
SD (1 piece)
7
There isn't any
8
There isn't any
9
There isn't any
10
Traditional (1 piece)
11
2.5 people/km2
12
River/well (brown)
13
River/stem latrine
14
There isn't any
15
No regular transportation
Source: Primary data analysis
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Volume 2 Number 8, August 2022
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The livelihood of the Jonggon Kampung community in general is very dependent on
the primary sector, namely agriculture, because of the existing 153 family heads (707
people), 104 family heads are farming families (408 people) or 68% of the total population
of Jonggon Kampung Village are farmers.
As revealed by (Mazvimavi et al., 2012; Muzari et al., 2012; Veysset et al., 2011) in
understanding rural poverty, the farming community of Jonggon Kampung Village also
experiences various dimensions of poverty in the form of property poverty, which is
indicated by the situation of housing made of low-quality materials (nipah boards and
leaves), household utensils that are minimal, do not have water facilities, washing, own
latrines (river latrines), the family economy is based on a debt economy, and their income
tends to decrease because rice production which is their mainstay product has also
decreased by 27.5% per year.
The next dimension of poverty can be seen from physical weakness caused by a high
dependency ratio between family members and healthy adult family members in earning a
living, this is reflected in the number of young farmers who turn to wood workers by
abandoning their potential fields, resulting in dependent family members (wife, children,
and other relatives) who initially depended on the farming business managed by the young
farmers became farm laborers in the fields of their neighbors.
The third dimension of poverty can be seen from the isolation in the form of
geographical isolation of the farming community of Jonggon Kampung, due to the absence
of adequate transportation facilities and poor road access, so that they have difficulty
obtaining various information on agricultural technology and markets. This isolation factor
causes the next dimension of poverty in the form of the powerlessness of farmers to the
dominance of highly exploitative middlemen/brokers, isolation which results in their low
access to competitive markets and market information (due to the lack of rural facilities
and infrastructure including economic facilities) making them very vulnerable to falling
rice prices, rising prices of fertilizers and medicines and the threat of crop failure. This
makes them always have to keep in touch with middlemen/pengijon through capital loans
or to borrow in an effort to cover the necessities of life in times of famine with interest
reaching 20% -30% which is paid at harvest.
The type of poverty of the farming community of Jonggon Kampung Village is
endemic poverty, because it is a combination of various factors, namely isolation (lack of
rural facilities and infrastructure), alienation of agricultural technology, dependence on the
middlemen's economy and lack of productive assets.
Sources and processes of poverty for farmers in Jonggon Kampung
The meta-problem of the problematic situation of poverty in the farming
community of Jonggon Kampung Village is the low income of farmers originating from a
substantive problem, namely a decrease in rice production and low rice yields per hectare
(productivity).
The average yield per hectare in the last five years, the rice production of farmers
in Jonggon kampung is also low, only 20 quintals per hectare per year and the low yield
per hectare comes from factors compared to rice production in surrounding villages such
as Jonggon Jaya Village which can reach 38 quintals per hectare, and Margahayu Village
which achieves yields per hectare up to 42 quintals. When identified the decline in rice
production by 27.5% the causes of the problem are:
1. Depreciation of Functional Rice Fields
Functional rice fields continue to experience shrinkage, because a lot of potential
rice fields are neglected with land shrinkage of 96 Ha / year,
2. Low Marketing Access
Bambang Arwanto
Poverty Reduction Policy of Small Farmers and Culturers Towards Explpoitative
Middlery Intermediation 1.448
The economic dominance of middlemen towards harvests in Jonggon Kampung
Village has increased in the last 5 years, this is due to other market players such as KUD
(which is located in Loa Kulu District), namely; Sumber Rahayu, Tani Makmur, Aneka
Usaha, Warga Sejahtera, Budi Luhur, Sei Kapur do not have sufficient capital to buy rice,
other competitive market players are not found because the location is difficult to reach.
The surge in the number of middlemen usually occurs when the price of rice falls after the
harvest.
3. Low Access to Technology
Technology in this case is defined as ways related to skills in the industrial sector
that are applied with the aim of increasing productivity, for example mechanization tools
are more productive than traditional agricultural tools (Cabraal et al., 2005; Mustanir &
Lubis, 2017). The agricultural mechanization program apparently has not touched the
farmers of Jonggon Kampung Village, in general they work on the rice fields with simple
tools, the land cultivation that they usually do using a hand tractor is obtained by renting
from middlemen/pengijon traders, and even then for farmers who get their turn in rent in
The waiting period is quite long and they have to cultivate their land in the traditional way
(plows and hoes), because when they wait for the hand tractor they are worried that the rice
seeds that have been sown will be too old to be planted, besides that the farmers are also
not familiar with seed technology, medicine and fertilizers. They only receive what has
been supplied by middlemen, the low access to technology can be seen in the following
table:
Table 2 Types of Tools and Technology for Farmers in Jonggon Kampung
No
Technology Type/ Tool Name
Amount
1
Land Processing
a. Mini tractor
b. hand tractor
c. Plow
d. Teacher
e. Hoe
-
1
39
30
312
2
Pest/disease control
a. Power sprayer
b. Hand sprayer
c. Emposan
d. Pest web
-
-
12
-
-
3
Yield processor
a. Power tresher
b. Pedal tresher
c. Serrated sickle
d. Ordinary scythe
e. Drying floor
f. Grain cleaner
g. Rice milling Unit (RMU)
-
-
517
416
-
-
-
4
Irrigation
a. Water pump
a. b. Boreholes
-
-
5
Seed (IR-46)
Supplied by middlemen *
6
Fertilizer and medicine
Supplied by middlemen
Source: Primary data analysis
* generally they do not have the ability to choose superior varieties
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1. Low Access to Capital
Capital is an essential element in increasing farming, lack of capital greatly limits
activities and business space. Farming capital obtained from community loans is limited to
lending and borrowing transactions with the aim of helping each other, but in an effort to
cultivate rice fields with large enough funding, they are generally trapped in a bonded labor
system with fairly large interest rates (20-30%).
Access to capital from credit institutions that have been given is only in the form
of Farm Business Credit. and even then it only reached 17% of the number of farmers who
really needed it and they got it only in one planting season (in 1995) with the obligation to
pay off within 7 months and with a credit interest of 14%, after the KUT payment they
never received assistance farming capital again, in addition to KUT capital as well. they
have received through a revolving fund for the Inpres Desa Disadvantaged program.
However, the revolving fund is too small to support their farming business, the revolving
fund is used for chicken and duck farming but on average it fails because there is no
assistance and guidance in managing the fund. The access to capital for farming in Jonggon
Kampung Village can be seen in the following graph:
Table 3 Access to Capital of Jonggon Village Farmers
No
Type of Capital
Year
Agency
Receiver
1
Farm Credit
1995
District Cooperative
Office. Kutai-
BRI_kab.Kutai
17 KK
2
Inpres
Disadvantaged
Villages
1993/1994
Kutai District PMD Office
10 Pokmas
* Obtained in one growing season after that never to be obtained again
Source: Primary Data Analysis
Government Program for Poverty Reduction of Farmers in Jonggon Kampung
The government's response to the poverty situation of the people of Jonggon
Kampung Village is very low. This can be proven by the absence of programs that are
relevant to the problems faced by the poor farming community of Jonggon Kampung
Village, the complexity of the problems faced, for example, the low ability of farming
capital, low technological ability, low marketing ability which results in decreased
production and low productivity. which in turn causes them to become a potentially poor
society.
The physical and geographical isolation they face in the form of poor rural road
facilities (11 km) has not yet been touched by government improvements, regular rural
transportation that can break the isolation of Jonggon Kampung Village has also not been
implemented, although the application of agricultural mechanization has been intensely
implemented in Loa Kulu sub-district since in 1993, but until now the increase in farmers'
technological knowledge through agricultural mechanization programs in Jonggon
Kampung Village has not received attention. In addition, efforts to strengthen rural
economic institutions such as the formation of KUD or strengthening KUD capital around
Jonggon Kampung Village in an effort to help market the agricultural products of farmers
in Jonggon Kampung Village were also not realized.
The program that has been implemented by the government in its relevance to the
problems faced by farmers is only the provision of KUT in 1995 which is the first and last
credit program for farmers because the program has stopped for farmers in Jonggon
Kampung since 1996. Subsidized capital assistance program that has been rolled out
through IDT since 1993 the amount is relatively small to support the farming business
Bambang Arwanto
Poverty Reduction Policy of Small Farmers and Culturers Towards Explpoitative
Middlery Intermediation 1.450
(divided into 10 pokmas capital). For this reason, efforts were made for other productive
activities, namely chicken and duck farming, but failed due to the absence of assistance and
guidance.
Weaknesses of Government Programs in Reducing Farmer Poverty
Externally the program, the capital assistance provided by the government through
subsidized credit, both Kerdit Usaha Tani (KUT) and Inpres Disadvantaged Villages (IDT)
have relevance to the problems faced by farmers. However, given the complexity of the
problems faced by the farmers of Jonggon Kampung Village, the capital assistance program
alone will certainly not be able to bring the farming community out of the circle of problems
without synergizing it with other programs such as technology and marketing of
agricultural products, in addition to considering the quantity of good capital. in terms of
quantity and scope, it has not been able to meet the capital capacity of farming businesses
Internally, the program provides KUT assistance to be ineffective for the farming
community of Jonggon Kampung Village because the KUT procedures and mechanisms
themselves must go through a submission at the KUD level and become a KUD member
first, while Jonggon Kampung Village does not yet have a KUD. seen in the following
image:
Figure 1 Schematic of Submission and Realization of KUT
Source Widyatmoyo, et al, 1997
The absence of KUD in Jonggon Kampung Village can actually be supported by the
presence of other KUDs around the village, for example the Prosperous Citizens KUD in
Margahayu Village which has facilitated the provision of KUT to residents of Jonggon
Kampung Village even though in fact they are not members of the Prosperous Citizens
KUD, but because of the many government programs that piggyback on the KUD such as
distribution of medicinal fertilizers, production inputs as well as marketing of agricultural
products as well as credit distribution, while it is well understood that the managerial and
technical capabilities of KUD administration are very weak plus a wide scope of work,
making the prosperous community KUD limit the scope of work to only Margahayu
Village, Thus, Jonggon Kampung Village has closed its access to capital services
However, with the many tasks that are piggybacking on the economic role of the
KUD with limited management resources, and the lack of guidance, the performance of the
Village Unit Cooperatives in the Loa Kulu sub-district generally suffers from a lack of
funding, this is clearly shown in Figure 2 where there is a decline in the role of cooperatives
as partners. buyers of farmers' crops, one of the reasons for the decline. KUD's capital is
due to the large number of credit arrears, this is also due to the absence of guidance and
assistance in the use of credit other than credit interest, which is around 14%, which is still
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considered large enough to be applied to poor farmers (compare with soft loan interest of
2.5% - 5% in the low-income group) weak economy by BPD NTB).
Cases of misuse of capital assistance originating from the government are not only
in the KUT program, this is also common in IDT funding, so to anticipate it, assistance and
guidance are needed on the use of these credit funds (Sarman and Sayogyo, 2000: 51-57)
to avoid arrears. credit by the poor because their status is not bank-worthy, coaching and
mentoring really need to be done.
the handling of the problems of Jonggon Kampung farmers through capital
assistance (KUT and IDT) did not work effectively, because the access of the Jonggon
Kampung farmer community to credit that had easy conditions, low interest, simple
procedures, fast disbursement, easy-to-reach locations and business technical guidance for
use credit has not been received.
Problem Structuring with Hierarchical Techniques for Policy Alternatives
To specify the problem from the substantive problem of decreasing production and
low rice yields per hectare (productivity) of the farmers of Jonggon Kampung Village into
a formal problem which is also a policy goal, the following will use a hierarchical problem-
finding technique in the form of a problem diagram structure as shown below:
Figure 2. Problem Diagram Structure of Joggon Kampung Village
Source: Primary Data Analysis
Bambang Arwanto
Poverty Reduction Policy of Small Farmers and Culturers Towards Explpoitative
Middlery Intermediation 1.452
After the problem specification is carried out, then an analysis of the desired
conditions in the analysis of objectives is carried out, the analysis of the objectives is carried
out by changing the conditions in the problem analysis above to the opposite, then testing
the relationship between goals that occurs logically, as in the following objective diagram
structure:
Figure 3. Goal Structure
Source: Primary Data Analysis
From the objective analysis diagram, it can be explained how the logical
relationship between increasing farmers' rice production can be achieved through the
achievement of policy objectives for potential land use (idle land), ease of marketing,
application of agricultural technology and capital assistance for farmers in Jonggon
Kampung Village.
From the causes of the problem it can be predicted the future of the policy
(prospective) Forecasting or forecasting is the process of making factual information about
the future situation on the basis of information on policy issues, as for the method used in
forecasting to determine various alternative policies in increasing rice production in
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Jonggon Village This village is using Projection Forecasting, which is a method based on
extrapolation or past and present trends for forecasting the future.
Projections are carried out with arguments supporting the same parallel cases
elsewhere with technical analysis across time and similarities in past and future policy
cases, because almost all public policies are aimed at improving conditions in the next 10
- 20 years by increasing the positive effects and minimizing the impact. negative effects of
policy alternatives (Effendi, 1999).
By using the hierarchical technique of problem formulation, the causes that can
be changed/manipulated (actionable causes) have been identified. Based on the causes that
can be manipulated (Patton and Sawicki, 1986), alternative policies are formulated to
improve future conditions as follows:
1. Alternative policies for controlling functional land depreciation
2. Alternative policies for increasing post-harvest market access
3. Alternative policies for applying appropriate technology
4. Alternative policies for capital assistance
The second step used to recommend policy alternatives is to test through several
criteria through the comparison method of criteria equivalent to the equivalent alternative
method, which is a method that considers all criteria the same and sees how far the trade-
offs that occur in the selected alternative when the criteria are equated, then carried out.
scoring to find the highest weight value. The criteria and assessment of each policy
alternative can be seen in Appendix 1-10, with a score of 1 which means it cannot be
applied, a score of 2 which means less effective, and a score of 3 which is quite effective.
a score of 4 means very effective. The results of the assessment are then recapitulated in
the following score table:
Table 4 Recapitulation of Alternative Scores on Policy to Increase Rice Production and
Yield per Hectare in Jonggon Kampung Village
Alternative
Assessment
Criteria/Score
Technic
al
Economic
s
Social
Law
Politi
cal
Administ
ration
Total
1. Controlling the
shrinkage of
functional land
2
2
4
2
2
2
14
2. Marketing
improvement
4
4
4
4
3
4
23
3. Increasing the
application of
appropriate
technology for
agriculture
3
2
4
3
3
3
18
4. Capital
assistance for
farmers
3
3
4
4
3
4
21
Source: Primary data analysis
Based on this scoring, the following ranking of policy alternatives can be generated:
a) Rank I is an alternative policy to increase access to marketing with a score of 23 or has
a score of 23:6 = 3.8 (close to a score of 4) which means it is very effective to be
applied.
b) Rank II is an alternative capital assistance policy for farmers with a score of 21 or a
criterion weight of 3.5 (21:6) which means it is effective to be implemented.
Bambang Arwanto
Poverty Reduction Policy of Small Farmers and Culturers Towards Explpoitative
Middlery Intermediation 1.454
c) Rank III is an alternative policy to increase the application of appropriate technology
with a score of 18 or a weight of criteria 3 (18: 6) which means it is quite effective to
be applied.
d) Rank IV is an alternative policy for controlling functional land depreciation with a
score of 14 or a criterion weight of 2,3 (14:6) which means it is less effective to
implement.
Results of Analysis of Recommended Policy Alternatives for Farmers in Jonggon
Kampung
The policy alternatives recommended for farmers in Jonggon Kampung Village are
as follows:
Table 5 Selected Policy Alternatives as Recommended Policy Alternatives in
Increasing the Productivity of Poor Farmers in Jonggon Kampung Village
Village
Alternative Assessment
Weight Policy
Recommendations
Jonggon Village
1. Improved Marketing
Access
2. Capital assistance for
farmers
3. Increasing the
Application of Appropriate
Technology for Agriculture
Very effective
Effective
Effective
enough
Chosen 1
Chosen II
Chosen III
Source: Primary data analysis
The explanation confirms that the recommended alternative policy is a synergistic
step in response to the complexity of the problems of the poor farmer village of Jonggon
Kampung, the response is to answer the problem according to the specific local
characteristics of the village. the variations found in the study are as shown in table 6 below:
Table 6. Variations in Poverty Cases of the Farmer Community of Jonggom
Village
No
Variable
Village
Jonggon Village
1
2
3
1
Specific poor group
Small Farmers (0.5-3Ha) and Cultivators
2
Poverty Type
Endemic
3
Poverty Process
Middleman Exploitation
4
Source of poverty
(poverty main
problem)
Decrease in rice production 27.5% per year and low
productivity (only 20kw/ha)
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5
Causes of rural
poverty (formal
problems)
1. Depreciation of functional paddy fields (96 ha/year)
2. Low access to marketing (poor village road facilities, no
rural transportation facilities, no KUD) so that marketing is
controlled by middlemen
3. Low technology, because the types and technological
tools used are very simple and unproductive technologies
such as plows and hoes
4. Low access to capital, because farmers' need for capital
(+ IDR 750 million/planting season) is met through
middlemen with high interest rates
6
Government
response (status
quo policy)
The granting of farm business credit (KUT) but only once in
the 1995 planting season with a reach of 17 farmer families
and the provision of revolving fund capital assistance
through the Presidential Instruction on underdeveloped
villages
7
Policy alternative
1. Controlling the depreciation of functional paddy fields by
means of a policy on the use of idle land + 96 ha + 480
Ha
2. Increasing access to marketing with a policy of improving
village roads + 13 km, establishing KUD, strengthening
farmer groups and providing public transportation routes
3. Application of appropriate agricultural technology with
policies to increase farmers' science and technology
human resources, extension of agricultural mechanization
technology, application of fertilizer and drug seed
technology
4. Capital assistance with the policy target of establishing
savings and loan cooperatives/rural credit institutions,
establishing village granaries and capital assistance
programs
Source: Primary data analysis
CONCLUSION
Based on the results of an analysis of the problems faced by poor farming
communities using a public policy analysis approach, it can be concluded that the rural
poor farming community in Jonggon Village, Loa Kulu Subdistrict, Kutai Kertanegara
Regency is a poor community who experiences various dimensions of poverty, both
property dimensions (material poverty), physical weakness (ratio of dependence due to
physical weakness), powerlessness (powerlessness in the face of large economic actors),
isolation (geographically) and vulnerability (vulnerability to various natural, social,
economic and political/policy changes). The type of poverty of the farming community of
Jonggon Kampung Village is Endemic poverty, because it is a combination of various
factors, namely isolation (lack of rural facilities and infrastructure), alienation of
agricultural technology, dependence on the middlemen's economy and lack of productive
assets.
The poverty of the poor farming community in Jonggon Kampung Village stems
from their low productivity, the low productivity of the community is marked by a decrease
in rice production by 27.5% per year and rice harvest productivity which is only 20 kW/ha,
the low productivity of poor farmers is due to their low access to natural resources.
Bambang Arwanto
Poverty Reduction Policy of Small Farmers and Culturers Towards Explpoitative
Middlery Intermediation 1.456
productive resources such as land, water, job opportunities, capital/capital, technology, pro-
policy, marketing, education, training, and sustainable environmental support. The process
of poverty that causes poverty in the rural communities of Jonggon Kampung farmers is
dominated by the exploitation process of middlemen, where middlemen are present as
intermediary institutions that distort the economy of small farmers and tenants.
Government programs that were launched as a government response to the poverty of the
farming community of Jonggon Kampung Village through capital assistance (Farming
Business Credit and Disadvantaged Village Instructions) did not work effectively, because
the access of the Jonggon Kampung farmer community to credit that had easy terms, low
interest, procedures simple, fast disbursement, easy-to-reach locations and technical
business guidance for the use of credit have not been implemented properly.
The alternative policies that are recommended for anti-poverty policies in dealing
with the exploitative poverty process of middlemen on the economy of poor farmers in
Jonggon Kampung are; 1) Controlling the shrinkage of functional paddy fields by means
of a policy on the use of unused land + 96 ha + 480 Ha; 2) Increasing access to marketing
with a policy of improving village roads + 13 km, establishing KUDs, strengthening farmer
groups in the provision of public transportation routes; 3) Application of appropriate
technology for agriculture with policies to increase farmers' science and technology human
resources, extension of agricultural mechanization technology, application of fertilizer seed
technology and drugs; 4) Capital assistance with a policy target of establishing savings and
loan cooperatives/Rural credit institutions, forming village granaries, as well as capital
assistance programs for small farmers and sharecroppers.
In order to eradicate smallholders and cultivators, it is necessary to increase the
productivity of these poor farmers through various policies that basically facilitate their
access to productive resources. Increasing productivity by providing them with access to
various productive resources is the key to the success of various programs aimed at
alleviating poverty for small farmers and land cultivators in Jonggon Kampung Village.
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