Impact of agricultural infrastructure and government support on farmers’ welfare in Indonesia
The Indonesian government has focused on building infrastructure and providing support for agricultural development, both in Java, its economic center, and outside of Java. Therefore, this study aims to examine the impacts of agricultural infrastructure development and government support on Indone...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Prince of Songkla University
2024-10-01
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| Series: | Songklanakarin Journal of Science and Technology (SJST) |
| Subjects: | |
| Online Access: | https://sjst.psu.ac.th/journal/46-5/7.pdf |
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| Summary: | The Indonesian government has focused on building infrastructure and providing support for agricultural development,
both in Java, its economic center, and outside of Java. Therefore, this study aims to examine the impacts of agricultural
infrastructure development and government support on Indonesian farmers’ welfare. The study used secondary data from 33
provinces from 2007-2021. The data were analysed using multilevel mixed-effect logistic regression and propensity score
matching. The use of such models is due to the significant heterogeneity of parameters between observations. The findings show
that the urea fertilizer subsidies, two-wheeled tractors and water pump assistances have a positive impact and improve the
farmers’ welfare in Java. Meanwhile, the urea fertilizer subsidies, four-wheeled tractor assistance, and the construction of ponds
have a positive impact and improve the farmers’ welfare outside of Java. The surprising observation from our study is that the
food self-sufficiency program harms the farmers’ welfare in both areas. |
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| ISSN: | 0125-3395 |