Business empowerment program and household economic welfare: Lesson from Indonesia

Abstract

This study aims to analyze the household economic behavior of salt farmers participants in Salt Business Empowerment Program (Pugar) including of salt production, work flow, household revenue, the behavior of consumption of food and non-food items and the welfare level. This research followed a survey method by engaging 32 household farmers as participants. The findings revealed that the empowerment program was carried out through the technical assistance of salting production and the assistance of equipment and technology from Thread of Screw Filter and geoisolators to improve the quality of salt. The problems come when the marketing of salt is still limited to the collectors of salt which led to the price of salt level, manufacturers have not remained stable. Household revenue sources for some salt farmers also come from non-salt pond business activities. Farmer household revenue can be used to meet staple food consumption and non-food staple consumption. Based on the indicators of family welfare, households participating in the empowerment program were group into the category of prosperous families. In order to stabilize the price of salt at the producer level, government intervention in the people's salt trading system is needed.