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Paper ID: 104

Institutional development of farmers through agricultural area-based corporations in Indonesia

Panji Harjanto1*, I M Fahmid2, M Ali2 and E B Demmallino2

1Doctoral Program of Development Studies, Graduate School, Hasanuddin University, Makassar, Indonesia

2Lecturer at Hasanuddin University, Makassar, Indonesia

Email: panjiharjantopertanian@gmail.com

Regional-based agricultural development which is divided into commodity-based areas with regional management approach will be carried out through Kostratani.  The main actor in agricultural institutions at the sub-district level is the Agricultural Extension Center (BPP).  Currently, the number of Agricultural Extension Centers in the sub-district continues to increase, namely in 2019 to 5,646 units.  Because the approach is relatively new, there are still many problems, among which farmers do not yet have a “business minded”, so that corporations cannot be implemented effectively dan effieciently.  For this reason, this research aims to identify and formulate policy recommendations and regulations for the development and integration of farmer institutions as partners for the growth and development of farmer corporations based on agricultural areas today.  Through a descriptive qualitative method, it is equipped with several related key informants both at the central and regional levels.  So this study can provide an alternative strategy in regional-based agricultural development by supporting the involvement of farmer economic institutions (KEP) in the form of a complete corporation.  The recommendation given is that farmer institutions in the form of Poktan and Gapoktan which are not legal entities, must be integrated with legal entities, namely cooperatives or companies.

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