Transaction Cost for Salt Farmers in Pesanggrahan Village, Kwanyar District, Bangkalan Regency

Abstract

The purpose of this study was to identify the transaction costs of salt farming in Pesanggrahan village, Kwanyar district, Bangkalan district. This study uses a qualitative method to identify the transaction costs of salt farming in Pesanggrahan village, Kwanyar district, Bangkalan district. We found that there are three types of transaction costs in salt cultivation in Pesanggrahan village, Kwanyar district, Bangkalan district, namely asymmetric information, contract costs, and negotiation costs. There are transaction costs in the process of buying and selling salt production between farmers and salt factories. This is identified by the emergence of Asymmetric Information in "Salt Price" and "Making Sorat Jelen" Between Farmers and Salt Factory. Negotiations between Farmers and Se Andi' Sorat (Quantity and Time of Sales) and Se Andi' Sorat with Salt Factory (Quantity and Price of Salt). The Farmer Contract Provisions Must Have Sorat Jelen become a system that makes the transaction costs of salt farmers and salt factories high. Having a travel permit is very difficult for salt farmers, this is because there are several requirements that must be carried out by them. This requirement then led to a contract between the salt farmer and the salt factory.