Farmer’s motivation to save money in bank Rakyat Indonesia: An application of logistic regression

Abstract

Saving in the bank did capital formation for the farmer in rural areas. However, the only few farmers who are motivated to save their income due to they are small farmers who need farming credit to finance their farming. Bank is one of the financial sources that can be used to save money. Because of the availability of the bank, farmers have a secure place to keep farming revenue. Bank Rakyat Indonesia is an alternative for the farmers to save money. The objectives of the study are identified farmer’s characteristics that are saving money in the bank, and determinants the factors that become main motivation of the farmers to save money in the bank. The study was conducted in Bank Rakyat Indonesia (called BRI) Tadokkong Village, Lembang Sub-district, Pinrang District, South Sulawesi by considering 50 respondents. Data were analysed by using Descriptive Analysis and Binary Logistic Regression Analysis with Backward: Wald Method. The results show that the farmers who are saving money (42 households) in the bank are higher than the farmers who are not saving money (8 households). Farmers have productive ages (15-60 years) with higher education is Junior High School. Numbers of household members ranging between 1 to 7 people with farming income (on average) are IDR 26,028,720 per annum. Besides that, the result of Statistical of Logistic Regression shows that the factors of education, service satisfaction of the bank, trust on the bank, security and presents affects farmer’s motivation in saving money in the bank.