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International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue VIII, August 2022 | ISSN 2454–6186

Agribusiness Development Strategy Through Agribusiness Microfinance Institutions: Evidence from Rural Indonesia

Bagus Bahrul Ilmi, Teguh Soedarto, Indra Tjahaya Amir
Agribusiness Master Program, Faculty of Agriculture, UPN “Veteran” East Java, Indonesia

IJRISS Call for paper

Abstract – In fact, agricultural productivity are directly proportional to the limited access of farmers to sources of capital financing. Rural Agribusiness Development Program implemented through the provision of funds for strengthening farmer business capital, so this activities are needed to find out how to direct program activities so that they are right on target and effective. The aim of this research is to analyze and formulate strategies that can be carried out in the development of the Rural Agribusiness Development Program. The sample used in this study were farmers located in Pacet, Dlanggu, Ngoro, Jetis, and Dawarblandong Districts, Mojokerjo Regency, which amounted to 60 sample farmers. The result are position of Defense and Maintenance Strategy, so the strategy that should be carried out is to develop and optimize the implementation of the Rural Agribusiness Development program by using a hold and maintain strategy.
Keywords: Rural Agribusiness Development Program, Farmer, and Strategy.

I. INTRODUCTION

Agriculture is the leading sector of development in East Java Province with its uniqueness within the framework of the national economy. East Java Province is a province with large agricultural commodities and has a major role in supplying agricultural products for national needs. The agricultural sector is divided into 7 sub-sectors, namely food crops, horticultural crops, plantation crops, livestock, agricultural services and hunting, fisheries, forestry, and logging. One of the agricultural sectors in East Java Province that has advantages is the food crop agriculture sector (BPS Jatim, 2013).
In 2019, the role of the agricultural sector in the East Java economy was ranked third after the manufacturing industry category (30.24%) and the wholesale and retail trade, car and motorcycle repair categories (18.46%), which was 11.43 percent. In the last five years, the role of the agricultural sector has continued to decline by 2.22%. The magnitude of the role of the agricultural sector in 2015 was 13.65%, then in 2016 it decreased to 13.44%, then decreased again in 2017 to 12.84%, then in 2018 to 12.90%, until in 2019 to 11.43% (BPS Jatim, 2019).