Farmer card as an instrument for fertilizer direct subsidy on Lombok Island, Indonesia

Abstract

Like other direct subsidies using subsidy cards, direct fertilizer subsidies using farmer cards are believed to be a mechanism for providing subsidies that are more appropriate for target farmers. However, before this policy is widely implemented, it is necessary to carry out a trial phase for its implementation. The trial was carried out in Sekarbela District, Mataram City with the consideration of the availability of relatively complete data on subsidy recipient farmers accompanied by a National Identity Number (NIK). The trial results indicated that the farmers receiving the subsidy were generally young (48-50 years old), had more than 20 years of farming experience, and most of them controlled land of less than 0.5 hectares with ownership, lease or cultivation status. However, most of the farmers (88%) have only elementary school education but are active in preparing the Group Needs Definitive Plan (RDKK). The results of the analysis conclude that the probability of using a Farmer’s Card to obtain subsidized fertilizer is smaller for tenant farmers compared to owning or cultivating farmers. In addition, farmers with a higher level of education have a greater probability of using the farmer’s card as a means of obtaining subsidized fertilizer.