INCOME INEQUALITY AND POVERTY AMONG RICE FARMERS: A CASE ON OWNER FARMERS AND SHARECROPPERS IN LAHAT REGENCY OF SOUTH SUMATERA PROVINCE

Abstract

South Sumatera Province occupies the position of poverty above the national average. The biggest contribution came from rural areas, most of which were communities with livelihoods as rice farmers. In-depth information is needed by the government to continue to reduce poverty and income inequality that occur. Lahat Regency is in the spotlight due to the achievement of average economic growth and poverty reduction above the provincial average. The lack of available information regarding the poverty of rice farmers in the category of land ownership status (owner and sharecropper) is an important foundation for this research. The objective of this study was to determine income inequality and poverty distribution among rice farmers in Lahat Regency of South Sumatera Province. Using the Gini ratio and minimum income based on the method by the Asian Development Bank (ADB) and Biro Pusat Statistik (BPS), the level of inequality and distribution of poverty between the owner farmers and sharecroppers were determined. The results of the study showed that income inequality occurred in the moderate category of rice farmers in the Lahat Regency. Based on BPS and ADB criteria, the highest distribution of poverty is found on sharecroppers. Overall poverty occurred among the rice farmers in Lahat Regency was high, namely 52.55% (BPS) or 73.65% (ADB).