Received: 2020-08-24  |  Accepted: 2020-10-26  |  Published: 2021-03-30

Title

The role of local informal financial institutions for sustainability of farmers: a case study of Malang and Batu


Abstract

The majority of Indonesian farmers are entirely dependent on the activities in the agricultural sector. However, the current agricultural system tends to works against farmers' welfare. This study aims to examine the role of local informal financial institutions in creating sustainable farmer welfare using a qualitative approach. The results of the study indicate that there is a dominant role of local informal financial institutions. This domination causes farmers to become helpless during harvest season, resulting in farmers' dependence on local informal financial institutions and their inability to enjoy sustainable welfare.


Keywords

independent farmers, local financial institutions, farmers' welfare


JEL classifications

Q12 , P36 , O18


URI

http://jssidoi.org/jesi/article/767


DOI


Pages

29-39


Funding

This research was supported by Grant Professor of the Faculty of Economics and Business through the Fund Tax State Revenue (PNBP) Brawijaya University (2019), with the number Contract Agreement: 03075/UN10.F02/PN/2019.

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Suman, Agus
University of Brawijaya, Malang, Indonesia https://ub.ac.id
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Santoso, Dwi Budi
University of Brawijaya, Malang, Indonesia https://ub.ac.id
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Putra, Ronny Ersya Novianto
University of Brawijaya, Malang, Indonesia https://ub.ac.id
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Journal title

Entrepreneurship and Sustainability Issues

Volume

8


Number

3


Issue date

March 2021


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

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References