Utilization of Social Capital by “Dukuh” and Existence of Floating
Market: Study on Lok Baintan Floating Market Banjar Regency,
South Kalimantan
Noor Rahmini
1,2
, M. Pudjihardjo
2
, Arif Hoetoro
2
and Asfi Manzilati
2
1
Faculty of Economics and Business, Universitas Lambung Mangkurat, Indonesia
2
Faculty of Economics and Business, University of Brawijaya, Indonesia
Keywords: Social Capital, Competitiveness, Lok Baintan Floating Market
Abstract: This article discusses the use of social capital owned by 'Dukuh' as it is called for farmers who also act as
first-level traders in Lok Baintan Floating Market in improving the Existence of Lok Baintan Floating Market.
Lok Baintan Floating Market as part of the traditional market in Indonesia still exists today, and even tends
to increase its existence as evidenced by the increasing number of visitors coming to this market and seen
from the increasing number of traders. This condition is different from traditional market conditions in general
and several other floating markets. One of the factors that have been ignored and is thought to influence the
existence of floating markets is social capital. The dimensions of social capital analyzed are networks, norms,
and beliefs within the scope of bonding and bridging social capital, as social capital that has been present
since the beginning of the formation of this market. This research is intended to find out and understand the
use of social capital by "dukuh" so that it still exists, even though the risks they face such as the possibility of
jukung” are reversed due to heavy river currents and uncertainty about the benefits obtained. The existence
of 'dukuh' as an indicator of the existence of a floating market. In the process of collecting and exploring data
and information, qualitative research methods are chosen in the form of phenomenology approaches.
Phenomenology studies to look closely at individual interpretations of their experience and try to understand
the meaning of experience from their perspective. In addition, there were also observations and in-depth
interviews with the informants. The findings of this study indicate that “Dukuh" tends to be more dominant
in utilizing social capital bonding than its bridging social capital in maintaining its existence in the Lok
Baintan Floating Market. this indicates that traders in Lok Baintan Floating Market rely more on their
relationships within their communities if they face problems compared to their relationships with outside
communities such as thickening trust, strengthening networks and maintaining the traditional culture of the
"papadaan" concept. So that policies need to be directed to encourage relationships in the community to be
maintained through events that involve active involvement of the community.
1 INTRODUCTION
Rural communities rely on the agricultural sector as
their main source of livelihood. Traditional markets
as one of the main places to market their agricultural
products (Angmor, 2012). For farmers, traditional
markets are an easy and inexpensive place in terms of
transaction costs to sell their crops. For the buying
community, the traditional market is a strategic and
inexpensive location to get living necessities. The
existence of the market becomes a mediator for
economic activities both for farmers and the buying
community. Therefore, the role of traditional markets
becomes very vital for rural communities (Syahyuti,
2008).
In South Kalimantan, the role of traditional
markets is replaced by floating markets, especially in
areas that are flowed by rivers. Unique trading
activities make the role of the floating market not only
as a traditional market but also as a tourist attraction.
Floating Market became a South Kalimantan tourism
icon.
The beginning of the emergence of floating
markets is in almost all waters of the river, but what
survives to date is only 2, namely the Muara Kuin
678
Rahmini, N., Pudjihardjo, M., Hoetoro, A. and Manzilati, A.
Utilization of Social Capital by “Dukuh” and Existence of Floating Market: Study on Lok Baintan Floating Market Banjar Regency, South Kalimantan.
DOI: 10.5220/0009494506780684
In Proceedings of the 1st Unimed International Conference on Economics Education and Social Science (UNICEES 2018), pages 678-684
ISBN: 978-989-758-432-9
Copyright
c
2020 by SCITEPRESS Science and Technology Publications, Lda. All rights reserved
floating market and the Floating Lok Baintan Market.
The government in order to preserve Banjar's
distinctive culture, namely river culture, has led to the
Siring tendean floating market which is active every
Saturday and Sunday in downtown Banjarmasin. But
because of its emergence based on the interests of the
government, this market is not the center of attention
of researchers.
Muara Kuin Floating Market experienced a
decline in existence seen from the decline in the
number of tourist visits and the number of traders who
trade in this Market. While the Lok Baintan Floating
market has increased in terms of the number of tourist
visits, as well as the number of traders who trade. The
above is evidenced by data from the Department of
Culture and Tourism of Banjar Regency, South
Kalimantan (2017) that in the period of 2015-2016
there was an increase in the number of visitors both
domestic and foreign to Lok Baintan by 42% from
25,935 people to 44,830 people. A significant
increase implies that there is an economic stretch in
South Kalimantan, especially around the Lok Baintan
area.
Traders as market participants have become one
of the important indicators of this market's survival to
date. If no one trades in this market, then there is no
activity in the Baintan floating market. Search results
of researchers, traders in this market are categorized
as 2 things, namely
1. The first level trader who works as a farmer
who in the Banjar language is referred to as
"Dukuh".
2. Second-level traders are referred to as
collectors or miners.
This research foccus on "dukuh" is because dukuh
has the choice to sell their crops not at Lok Baintan
floating market but in other nearby traditional
markets. The reason behind this is an important thing
to explore. By exploring the background of hamlet,
this market still exists, with so much risk being borne,
that is, the risk of backing is reversed because of
heavy flows, erratic income and working hours
activities which are started before the prayer becomes
important to study.
The consistency of the dukuh in this market has
become an indication of the presence of social capital
in the midst of traders. As stated by Acil Hj. Bustan,
there is a feeling of being lost if just spending a day
is not present in the market:
Dimapa caranya, diusahaakan agar bisa tetap
bajualan hari-hari disini (how to do it, so that we can
continue to trade every day here). This means that
market players not only rely on the purpose of
transacting only for motives of profit for sellers and
low prices for buyers. There is trust that is built
between market participants through repeated
transactions which are a sign of strong bonding
(bonding) and bridging relationships (bridging)
between communities have been formed through the
culture adopted. Therefore this study seeks to reveal
in detail how "dukuh" utilizes social capital (bonding
and linking) that already exists in the market at Lok
Baintan Floating Market.
2 THEORICAL FRAMEWORK
a. Social Capital and Economy Development
The definition of social capital that is widely accepted
is part of social life such as networks, norms, and
beliefs that encourage participants to act together
more effectively to achieve common goals (Coleman,
J, 2000). Whereas according to Mohsenzadeh (2011)
explains social capital is a characteristic of a society
or group which includes: information, ideas, trust and
cooperation that increase the organizing capacity to
find solutions to community problems.
More deeply, there are three main attributes of
social capital, namely beliefs, norms and networks.
Fukuyama (2002) defines trust, namely cooperative
norms such as honesty and willingness to help which
can be divided between limited groups of society and
not with other communities or with others in the same
society. Trust allows traders to have the opportunity
to build a reputation for reliability, making
transactions cheaper and more stable. A good
reputation fosters trust and will eventually
disseminate information quickly and cheaply
(Murshid, 2011).
Networks can be created through friendship or
friendship relationships that provide alternative
channels for information flow in an organization
(Fukuyama, 2002). Communities can make and use
networks to improve the quality of life in their cities.
Networks help to get information, ideas, influences,
and resources so they can achieve goals (Woolcock &
Narayan, 2000).
McDonald (2015) defines social norms as an
expectation of appropriate behavior that occurs in a
group context. Medium Putnam (2000) explains
norms consisting of understandings, values,
expectations and goals that are believed and carried
out jointly by a group of people. Norms can be
derived from religion, moral guidelines, and secular
standards as well as professional codes of ethics.
Based on the connection relationship between
actors located at different levels, social capital has
been presented as a bond (bonding), bridging
(bridging), and linking (linking). Putnam (2000) in
Heenan (2010) draws the distinction between
Utilization of Social Capital by “Dukuh” and Existence of Floating Market: Study on Lok Baintan Floating Market Banjar Regency, South
Kalimantan
679
bonding and bridging social capital. Bonding social
capital is based almost entirely on bonds of solidarity
between groups that are the same as people and aims
to help people get something. Relationships in the
family can be considered as examples of social capital
ties. Whereas Bridging social capital refers to
horizontal trust and reciprocal relationships between
diverse individuals. This means that bridging social
capital is inherently more valuable than social capital
bonds because it has the potential to generate broad
benefits.
According to Chou (2006) social capital exists at
three levels. First, micro-level social capital is in the
network of individuals or households. Micro level
social capital consists of 'bonding' and 'bridging'
social capital. According to this first model, that
social capital bonding at the micro level plays a key
role in the accumulation of human capital. Second,
the analysis of social capital at the meso level extends
the concept of social capital to include vertical and
horizontal associations and behavior among other
entities, such as companies. Third, social capital at the
macro level includes the most formal institutional
relationships and structures, such as political regimes,
legal rules, court systems, and civil and political
freedoms.
Figure 1: Conceptual Framework
b. The Important Role of Bonding Social Capital
in the Economy Activity
According to Cecchi & Molinas (2006) social capital
plays a role in development through three main lines:
First, at the micro level, informal social networks of
relatives and neighbors are fertile land to build mutual
insurance mechanisms and form a survival strategy.
Second, social capital can improve the ability of the
poor, especially in underdeveloped areas where
market institutions have failed and the role of the state
is limited. The bond of social capital and social
capital bridges to encourage information diffusion
and trust, enforce contracts, and create informal credit
networks, or access to formal credit. In particular,
social capital can be considered a key asset for the
development of small businesses. And third, social
capital can help poor people improve their living
conditions through collective action, enabling people
to advocate and lobby activities. At the macro level,
social capital can play an indirect role in reducing
poverty and inequality through a positive influence on
economic growth.
Chou (2006) further proposed three models of the
impact of social capital on macroeconomic
performance, namely: (i) assisting in the
accumulation of human capital, (ii) influencing
financial development through its impact on
collective trust and social norms, and (iii) facilitating
collaboration and network between companies that
results in the creation and diffusion of technology and
innovation business.
The impact of social capital on growth is divided
into three, namely: first, at the micro level the bonds
of social capital help to accurately formulate human
resources. The second model, the impact of social
capital bridges influences financial development
through its impact on collective trust and social
norms. The last model, meso level in the form of
"connecting" social capital arises from networks and
collaborative activities of companies, which then
results in the efficient formation and diffusion of
business and technological innovation (Chou, 2006).
3 RESEARCH METHOD
This study uses qualitative research for several
considerations. First, this study wants to understand
in-depth social interactions, the meaning behind data,
unclear research problems, understanding people's
feelings, developing theories and ensuring the
correctness of data in the field (Fatchan, 2013).
Second, this research attempts to examine a truth
naturally and this requires evidence based on
"natural" truth in a subjective context. "Natural"
meant here is that researchers can recognize subjects,
feel what they experience in everyday life. Third, the
perceptions of individuals in Floating Market (related
government institutions, traders, suppliers and
buyers, including tourists) about floating markets will
Use of social
capital by
“dukuh”
Modal social
bonding
Modal social
bridging
Social Capital: The
Trust for Norms
Network
The existence of
a floating
market
UNICEES 2018 - Unimed International Conference on Economics Education and Social Science
680
be different and influenced by several factors, and
these differences will be easier explained through
qualitative methods (Fatchan, 2013).
The qualitative method used is the
phenomenology method. This is because phenomenal
research aims to provide an understanding of the
response to the existence of individual human beings
or groups or communities, as well as experiences that
are understood in interacting as a whole and
thoroughly (Fatchan, 2013). To describe the
phenomena occuring amongst traders’ interaction in
Lok Baintan floating market, the researcher used
Phenomenological approach. Pietersen (2002) and
Anderson (2007) stated that phenomenological
studies is not encouraged by previously formed
theoretical construction and the hypothesis, but by the
willingness to describe a specific phenomena’.
The research took place in Lok Baintan floating
market in Lok Baintan village in the District of
Sungai Tabuk, Banjar Regency, and South
Kalimantan Province. Lok Baintan village is one of
21 villages located in the District of Sungai Tabuk
(District of Sungai Tabuk in Numbers, 2014).
Early observation showed that there were 200 to
300 traders in Lok Baintan, who were mostly women.
They were flocking the market during the fruit season
in October to December because they came to trade
their harvest in the market.
Lok Baintan floating market is now different from
it was the early time of its appearance. In the last few
years, it gained special attention from the local
government for the provision of several access both
in transportation and communication. This then
became the researchers’ particular interest to see the
effect to bonding social capital amongst the traders.
The informants participated in this study is the
sources who directly involve in the activity of Lok
Baintan floating market and who could provide
information on the phenomena being research such as
wholesalers, retailers and consumers.
The technique used to select the informants were
snowballing technique to find informants continually
from one informant to the other within the district and
the village. Informant consisted of the figure of the
society, religious figures to obtain rich, complete and
in-depth data. Snowball technique was stopped when
data saturation occurred
4 ANALYSIS
Commodity items traded at Lok Baintan Floating
Market are dominated by agricultural products from
surrounding villages. Therefore farmers in this case
act as the main suppliers in this market. Farmers who
sell their crops directly in this market are called
dukuh.
Dukuh in its daily life has a direct relationship
with fellow hamlets, miners and household
consumers. This relationship creates bonding and
bridging relationships.
a. Farmers make use of "bonded" social capital
with the aim of increasing income through:
As is known, the market participants in Lok Baintan
Floating Market are homogeneous. Those involved in
the market have strong family relationships,
friendships and friendships (Rahmini, 2015). This
relationship characterizes strong bonding
relationships and becomes the basic foundation in
every interaction of market participants in Lok
Baintan Floating Market. Hamlet relations with other
merchants such as miners as relationships need each
other and complement. Hamlet if there are no miners,
then the crop must be carried alone to the city
(traditional land market). For the miners, the crops
purchased from hamlets will be sold back to
traditional markets in the city of Banjarmasin and its
surroundings. The products produced are products
that are of interest to consumers because they are still
fresh and halal. Penyambang gets a profit from this
sale and purchase activity.
The profit that can be obtained is not certain,
depending on the condition of the transaction.
Sometimes profits are enjoyed by miners, but
sometimes the benefits are more enjoyed by the
shaman. The two responded to this with a sense of
sincerity as revealed by Hj. Bustan:
“Ada haja rajaki masing-masing. Kada tapi
usah bahimat-himat. Dahanu tebanyak
kulihan, dahanu kada sabarapa. Nang penting
barang habis. Nang nukar senang.”
Sustenance has already been arranged. No need to
work too hard. Fortunately, what is obtained is
uncertain. the important thing is selling behavior. the
buyer is also happy.
The lower price offer is not only due to the
proximity of the location but also supported by social
capital bonding and also coloring the relationship
between the shaman and the miners. The combination
of both makes the prices offered by hamlets lower. At
one time the hamlet benefited from bonding relations
when other miners benefited from bonding
relationships. This is considered to be a form of help
between the two. Helping financially is not possible,
so assistance in bonding relationships is a form of
helping others.
Utilization of Social Capital by “Dukuh” and Existence of Floating Market: Study on Lok Baintan Floating Market Banjar Regency, South
Kalimantan
681
Strengthening the Network.
The existence of a long hamlet in the Floating Market
makes the network that occurs very strong. If there is
one member affected by the disaster, then as much as
possible the market participants try to help. Likewise,
when there is a buyer who wants to buy the item but
the desired item does not exist, the purchase is
directed to the seller (seller) to another seller. This
will not happen if there is no long-standing network,
so there is a high sense of empathy for community
members, namely the merchant community in Lok
Baintan Floating Market.
Prioritize capital assistance obtained from bonding
and bridging relationships rather than linking
relationships
Dukuh facing capital difficulties is more entrusting
capital issues in the relationship of 2 types of bonding
and bridging relationships compared to linking
relationships. For farmers, getting capital from
bonding and bridging relationships is not as
complicated as getting capital from a linking
relationship. This is also related to habit factors.
Erratic income factors make farmers need to think
more deeply if they get capital assistance from linking
relationships, unless the nature of the assistance
provided is not binding.
Capital assistance from bridging relationships
which are currently used by farmers more in
expanding capital such as loans from cooperatives,
Pokdarwis. Capital assistance obtained from bonding
relationships is still often used by farmers but this is
used limited to loans that are sudden in nature and
cannot be obtained through relationships other than
bonding.
Marketing Through Customer Relationships
Dukuh in the activity of selling their harvest habits in
large numbers (bungkalang). This is because
consumers are dominated by miners who buy on a
large scale. Relationship between dukuh and
customary miners apply subscription relationships.
Subscription relationships cause the two parties to
prioritize mutual trust in each transaction that occurs,
both barter, exchange and money.
There is a minus plus value from bonding
relationships in the relationship between the dukuh
and the miners. As stated by Hj. Bustan that the trust
is sometimes misused by the buyer. But apart from
that bonding relations make it easy for dukuh to
market their crops through trust and reciprocity
between the two. So is the bridging relationship,
making the dukuh know where consumers need their
crops.
b. Utilization of Bridging Social Capital
The findings of the researchers are known that the
bridging relationship that is established in Lok
Baintan Floating Market is trust and cooperation
between a group of equal people (community) and
has the same goal in terms of the common source of
raw materials, capital in formal and informal
relationships. This bridging relationship arises
because the relationship between actors is no longer
in a homogeneous community, but has been diverse
in communities. The perpetrators began to realize that
by making the container a place to accommodate their
aspirations if there were problems they would make
them more secure from various risks such as the
"Tambangan Balarut" cooperative, a farmer group,
Pokdarwis.
The bridging social capital that is established
seeks to be utilized by the organization that
accommodates the individuals in it in achieving the
welfare of its members. The welfare of members will
deliver the standard of living of its members at a
better level of livelihood. The following is explained
how actors use bridging social capital in the
organizations they follow to achieve a better level of
progress. Actors take advantage of bridging social
capital in the form of:
Strong Commitment and Collective Action
Strong commitment of members is needed for the
development of the organization. This is also the case
for cooperatives built by members in 2012. The
commitment of its members to jointly promote
cooperatives for mutual progress is evidence of
members' collective action in an effort to improve
their economic level.
Members realize, they cannot only rely on one
type of relationship, but also require bridging social
capital relations that are able to connect them to a
higher level, namely the government and related
agencies. Only by utilizing social capital bonding that
they have not been able to solve a larger problem in
trading activities at the Lok Baintan Floating Market
more thoroughly because of the limitations of
bonding relationships. This is evidenced by the
findings of Chou (2013) that the impact of bridging
social capital influences financial development
through its impact on collective trust and social
norms.
UNICEES 2018 - Unimed International Conference on Economics Education and Social Science
682
Share the latest Knowledge
Traders who are members of formal and non-formal
organizations are gradually given the knowledge that
supports them in a better direction. In the
"Tambangan Balarut" cooperative members are
taught how to manage the income received. The goal
is that members who borrow from cooperatives are
able to pay loan installments in cooperatives. The
smooth payment of installments in cooperatives will
have an impact on larger absorbed funds, where other
members have the turn to get loans.
Regular monthly meeting of members does not
only attract monthly contributions to members but
also as a venue for sharing knowledge. Besides being
taught how to manage finances, members of the
cooperative share knowledge that is controlled by one
member. Like the knowledge of how to hook new
customers to keep repeating purchases. This is a
manifestation of the togetherness of members in
cooperatives in an effort to increase members' income
together.
Latest Price Information
In addition to some of the bridging relationship
advantages mentioned above. Members who are
members of the "Tambangan Balarut" cooperative get
information on prices and goods they want and
potential customers who want their merchandise. The
monthly routine meeting of the "Balarut Mining"
Cooperative is a place for members to exchange
information on the price of goods and where the
desired item is located.
The benefits of bridging relationships seem to be
very helpful for members who are members of formal
and informal organizations. Members who are
members of the organization at Lok Baintan survive
one of them due to income factors. This is also
reflected in Fischer's (2012) study of farmer
organizations in Kenya that positive income effects
keep group members alive and active, through
collective marketing price advantages. Apart from
prices, farmer groups function as an important
catalyst for the adoption of innovation through
increasing efficient information flows, where there
are conditions where collective action is useful, and
emerges through a potential benefit mechanism.
Figure 2: Utilization of Micro Social Capital by Dukuh in Lok Baintan Floating Market Area
5 RESULTS
Transactions “bepanduk” are the hallmark of buying
and selling at Lok Baintan, which is still used by
market participants. This transaction is one of the
forms of informal relationships that are established in
this market and is a solution for traders in facing
financial difficulties. The financial difficulties solved
by this informal relationship are in line with what
Evan (1996) stated that informal relations will not
directly improve welfare but without this relationship,
welfare will be very difficult to achieve.
Strong
commitment and
share the latest
knowledge
Competitiveness
of product prices is
Prioritizing capital
obtained from bonding
relationships
Latest price
information
bridging
Traders
(peyambang)
Increased
bondi
bonding
supply increases
Information on
price updates, the
existence and quality
of goods desired by
Subscription
relationships for risk of
uncertainty
Adequate capital at
the price of friendship
Trust in
r
educ
in
g
Dukuh
Utilization of Social Capital by “Dukuh” and Existence of Floating Market: Study on Lok Baintan Floating Market Banjar Regency, South
Kalimantan
683
Simply put, how farmers and traders in the Lok
Baintan Floating Market area utilize social capital at
the micro level can be seen in the Figure 2.
6 CONCLUSIONS
The use of social capital by Dukuh in improving the
existence of the Lok Baintan Floating Market is
summarized at the micro level including bonding and
bridging relationships. At the bonding level, Dukuh
utilizes social capital by utilizing social capital such
as thickening trust, strengthening networks and
nurturing traditional culture on the concept of
"papadaan". At the bridging level, through
commitment and collective action, share the latest
knowledge and the latest information.
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