Abstract

Indonesia's rice crop production growth will possibly always increase every year. However, the direction of growth in production and the area of harvest which increases is inversely proportional to the condition of decreasing productivity growth, which is known as productivity inequality. Efforts to solve these problems are through partnerships with the government and the private sector. The purpose of this study is (1) to analyze the characteristics of Indonesian farmers following the partnership, (2) to analyze the factors that influenced Indonesian rice farmers to join contract farming, and (3) to measure the impact of the participation of Indonesian rice farmers in contract farming on farmer household income. This study used secondary data from the Rice Plant Business Household Survey 2014 (SPD 2014) conducted by the Central Statistics Agency with a total sample of 87,330 samples. Data were analyzed using logistic regression and propensity score matching, which resulted in (1) There are differences in characteristics of partner farmers in Indonesia including age, education, gender, participation in SLPTT, income, and a land area used; (2) There are four variables that significantly influence farmers in participating are age, education level, production costs, and the participation of institutional farmers; (3) The participation of farmers in partnerships has a positive impact on the income of rice farmers in Indonesia.

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