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non-agricultural sectors such as drivers, construction
workers, or pedicab drivers.
In the past, the atmosphere in the Village of Olak
Alen is full of local wisdom gotong-royong
(working together to solve one problem). This action
does not only exist in social aspect but also in
economic aspect. In social aspect, gotong-royong is
intended to solve one or more social problems. For
example, lack of infrastructure (e.g. poor road
condition or irrigation system) is solved by working
together to overcome the problem. The participants
work with no payment. Furthermore, some families
voluntarily provide food and drinks for them. In the
economic sector, gotong-royong is conducted to
overcome some economic problems. People who
need additional labor usually ask their neighborhood
to help them, usually with no or little gratification.
To pay the labor cost, the employee also conducts
reciprocal action in other farmlands.
In our field visit in the Village of Olak Alen, the
tradition of gotong-royong is partially swiped out
from villagers’ tradition. Gotong royong still exist
only to overcome social problems, whereas in to
solve economic problems, people tend to use the
capitalist method, i.e. by pay the workers. The
inexistence of gotong-royong to overcome economic
problems in Village of Olak Alen is started from
1997-1998, where the economic crisis peaked in
Indonesia. This situation worsened people welfare.
Thus, they tend to avoid work voluntarily but work
by salary. On the other hand, the crisis boost created
additional unemployment. They, who are
unemployed, would work any jobs with any level of
salary. This moment created the tradition of paid-
workers in all economic aspects. Gotong royong still
exist in solving social problems. After a period of
1997-1998, the cultural ties are weakened by the
financial crisis. It allowed people to move to another
village. Also, it drove to higher mobilization among
people. Thus, villagers seemed to give a big effort to
preserve their ancient tradition through gotong-
royong in solving social problems.
There are several causes of diminishing spirit of
gotong-royong in Village of Olak Alen. First, people
tend to place money as their first priority. This
mindset drives people to find other financial sources.
For example, people who feel that their income is
not sufficient to pay their needs will find side jobs or
work in other cities. Their insufficient income also
leads to a poor condition where almost all aspects in
life are measured in money.
Second, people will feel that their neighborhood
as competitors, not a partner. This situation drives to
unacceptable ways conducted by some farmers to
increase their production. In the Village of Olak
Alen, there is a kelompok tani (a group of farmers)
who accommodates them in agriculture issues. This
kelompok tani is aimed to provide inexpensive
seeds, fertilizers, and pesticides. Also, kelompok
tani is used to introduce better farming methods and
cures. Insufficient income drive to some farmers
cheats by approaching the leaders of kelompok tani
to gain privilege. As a result, only they who have an
exclusive connection to kelompok tani can access for
inexpensive seeds, fertilizers, and pesticides. Other
farmers will lose the opportunity to gain those
inexpensive items.
Third, the income inequality in the Village of
Olak Alen created additional pressure on poorest
people. Rich families have bigger opportunity to
enhance their living standard through many
channels, e.g. gain wider access to the market,
bigger capital to operate their farmlands, and apply
new farming techniques. On the other hands, poorer
families tend to stuck in their living condition. To
solve their financial problems, some families sell
their farmland to richer families. The peasant lives in
poor condition and will to work at any wage level.
Fourth, there are differences in investment
pattern among a different group of farmers. Richer
families will have the capacity to invest in some
investment instruments. Majority of them buy
jewelry and land area as their investment tools.
Jewelry is easily bought and sold, even in their
nearest jewelry stores in their village. Besides, land
area is usually sold at a low price by poorer families
to fulfill their needs. They, especially who are
trapped in debt, sell their farmland at a low price to
get fresh money. In contrary, poorer families will
have no adequate investment. Their low income is
only sufficient to pay their daily needs.
Fifth, an agricultural transformation that provides
benefit only for a few people. Our respondents stated
that their living condition is lower than before the
1997/1998 crisis. They argued that it is difficult to
find high income nowadays. They have to struggle
with their relatively constant earnings from their
farmland. Otherwise, they must find other jobs or
move to other cities. In the previous period, people
feel safe and easy to gain income. Everything is
considered guaranteed by the government. Obtaining
money has not a big concern for them. Thus, people
enjoy sharing their time and force for their
community, which was called gotong-royong. In that
era, gotong-royong was conducted in almost all
aspects of community: social, economic, religious,
etc. As a result, nowadays, people who do not enjoy
IRCEB 2018 - 2nd INTERNATIONAL RESEARCH CONFERENCE ON ECONOMICS AND BUSINESS 2018
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