Prototype the Economic of Coconut Farmer Household in Indragiri Hilir Municipality, Riau Province

Heriyanto, Asrol, Detri Karya

2019

Abstract

Coconut farming is the main livelihood of the majority of households in Indragiri Hilir. Although the penetration of oil palm plantations has entered the region, the existence of palm, coconut smallholders, in particular, is still maintained. In order to maintain the existence of the coconut as a commodity with a great contribution to the economy Indragiri Hilir, it is necessary to alignments economic policy. This study was conducted with the aim of analyzing the impact of economic policies on household economic decisions coconut farmers associated with the production, allocation of working time, income, consumption, and investment. Simultaneous equations econometric approach with two stages least square method (2SLS) was used to answer the research objectives. The result of the analysis showed that the increase in coconut prices and the hired labor in coconut farming impact contrary to the policy of increasing wages. Increasing the price of coconut and the use of hired labor a positive impact on farm household economy in terms of increased production, income, household consumption, and investment, but a negative impact on the allocation of working time. Meanwhile, wage increases have a negative impact on production, income, consumption and business investment, but a negative impact on the allocation of working time. Therefore, the policy of increasing the price of coconut through the government’s efforts to encourage an increase in the price of coconut through the coconut pricing policies or to realize the strong bargaining position of farmers against market structures tend to be oligopsony needs to be done. In addition, it is also necessary to encourage household persuasive farmers to be more focused on making coconut farming by allocating more time working on his coconut farm.

Paper Citation

in Harvard Style

Heriyanto., Asrol. and Karya D. (2019). Prototype the Economic of Coconut Farmer Household in Indragiri Hilir Municipality, Riau Province.In Proceedings of the Second International Conference on Social, Economy, Education and Humanity - Volume 1: ICoSEEH, ISBN 978-989-758-464-0, pages 69-78. DOI: 10.5220/0009059800690078

in Bibtex Style

@conference{icoseeh19,
author={Heriyanto and Asrol and Detri Karya},
title={Prototype the Economic of Coconut Farmer Household in Indragiri Hilir Municipality, Riau Province},
booktitle={Proceedings of the Second International Conference on Social, Economy, Education and Humanity - Volume 1: ICoSEEH,},
year={2019},
pages={69-78},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009059800690078},
isbn={978-989-758-464-0},
}

in EndNote Style

TY - CONF

JO - Proceedings of the Second International Conference on Social, Economy, Education and Humanity - Volume 1: ICoSEEH,
TI - Prototype the Economic of Coconut Farmer Household in Indragiri Hilir Municipality, Riau Province
SN - 978-989-758-464-0
AU - Heriyanto.
AU - Asrol.
AU - Karya D.
PY - 2019
SP - 69
EP - 78
DO - 10.5220/0009059800690078