The debt trap of seaweed farmers: A case study from Bajo Community in Bungin Permai, Indonesia

Abstract

Seaweed farming is an important livelihood in coastal areas in Indonesia. This activity is the only cash source for farmer's daily needs. Nevertheless, they still suffer due to their lifestyle such as debt trap. This study aimed to describe the debt trap in seaweed farmers living in Bungin Permai village, Tinanggea district, South Konawe, SE Sulawesi, Indonesia. This study was done using a survey method. Structured questionnaire and in-depth interviews were done with a series of livelihood household surveys for randomly selected 98 respondents working as seaweed farmers. From this study, it was found that debt is their lifestyle. It was caused by their simple lifestyle. They always consider that the high fisheries resources from farming and fishing activities can maintain their daily life. Their expenditures are more than they can afford, especially on non-food and social expenditures (extravagant lifestyle). In addition, they mostly do not prefer to save their money in bank. Therefore, the only way to meet their daily needs is by borrowing from their middlemen.