Strategies to Increase Farmers' Financial Inclusion

• Main Authors: Yuwono Minto, Rita Nurmalis, Budi Suharjo, Bunasor Sanim
• Format: Article
• Language: English
• Published: Universitas Indonesia 2017-05-01
• Series: South East Asian Journal of Management
• Subjects: Farmers, Financial Inclusion, DFS, Profile
• Online Access: http://journal.ui.ac.id/index.php/tseajm/article/view/7732
• ISSN: 1978-1989; 2355-6641

<div>This research aims to determine the level of interest by farmers in using the</div><div>services of formal financial institutions, especially digital financial services</div><div>(DFS). The methods of the research were descriptive statistics and SEM analysis.</div><div>The majority of respondents (50%) farmed an average area of land less than</div><div>0.5 hectares, 26% of respondents an average of 0.75-1 hectares and 24% of</div><div>respondents an average of 0.5-0.75 hectares of land. Based on the status of land</div><div>ownership, &nbsp;as many as 76% of &nbsp;respondents owned the property itself, 19% had</div><div>a &ldquo;lease&rdquo; arrangement and 5% used state owned &ldquo;arable&rdquo;land. A total of 27% of</div><div>the farmers were interested in using DFS while 34% were not. The lack of intereset</div><div>was due to practical uses, enjoyment of cash and lack of knowledge. The reason</div><div>for interest in DFS included practicality, speed, and security of use. Results from</div><div>the SEM model indicate a significant and positive influence of Access to Usage,</div><div>significant and negative influence of DFS to Access, significant and positive</div><div>influence of DFS to Interest, significant and positive of Interest to Desire, and a</div><div>significant and positive Desire to Access.</div>