Comparative studies of partnership between Credit Farmers (Tebu Rakyat Kredit) and Independent Farmers (Tebu Rakyat Mandiri) with Pesantren Baru sugar factory in Kediri, East Java, Indonesia

Abstract

Sugarcane plays an important role in Indonesian economics. However, recently sugarcane field has been converted into a rice field or housing. It has made a challenging to elevate sugar productivity. Located in Kediri, Pesantren Baru Sugar Factory is one of the potential places to develop sugarcane as a prime commodity in East Java, Indonesia. This study aimed to analyze the model of partnership, Credit Farmers (Tebu Rakyat Kredit/TRK) and Independent Farmers (Tebu Rakyat Mandiri/TRM) in Pesantren Baru Sugar Factory; profit of TRK and TRM; feasibility of TRK and TRM. Primary data were collected with survey method of 60 farmers and independent t-test analysis was used to compare profit and feasibility between TRK and TRM. The result showed the model of partnership in Pesantren Baru Sugar Factory were TRK and TRM. TRK was more profitable and feasible than TRM.