Abstract

Large red chili farming is a farming that has an important role in Indonesian economic development. The appropriate selection of working capital financing sources will be able to maximize the business profit for farmers. Therefore, it is important to carry out an effort in order to increase the profit and to minimize the risk of loss. The purpose of this article is to find out the working capital financing sources of large red chili farmers based on their perspectives. The type of research applied is descriptive qualitative. The selection of the informants is conducted by using purposive snowball method. The data analysis method consists of four steps: data collection, data reduction, data presentation, and conclusion. The study concludes that most of large red chili farmers in Sempu use a mixed working capital financing sources. They combine self-financed working capital with working capital obtained from middlemen. Meanwhile, the alternative sources are obtained from cooperatives and other non-formal funding sources.

Highlights

  • Indonesia is well-known as an agricultural country

  • The role of the sector is reflected through its contribution in the national Gross Domestic Product (GDP) establishment, employment extension, agricultural products export and other benefits given to the country in fulfilling the food supply

  • The Working capital Funding Sources for Large red chili Farmers: Based on the interviews with 15 informants, it is noted that the working capital funding sources selected by large red chili farmers in Sempu are diverse

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Summary

Introduction

Indonesia is well-known as an agricultural country It means that the agricultural sector plays a role in the development of the national economy. The role of the sector is reflected through its contribution in the national Gross Domestic Product (GDP) establishment, employment extension, agricultural products export and other benefits given to the country in fulfilling the food supply. The agricultural sector in Indonesia includes the food crop subsector, horticulture, fishery subsector, livestock subsector and forestry subsector. Namely horticulture, is a potentially growing subsector in Indonesia that can be exported overseas. Banyuwangi is a fertile area and has a great potential in improving the development of agricultural products. Especially food crop and horticulture can grow and thrive. Due to the contribution, Banyuwangi has often become the barometer of the horticultural development in provincial and national level (http://www.banyuwangikab.go.id/page/bda/pertani an.html)

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