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Perception and Accessibility of Chili Farmers Towards Formal and Nonformal Financial Institution in Magelang Regency

Author

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  • Cahyaningtyas, Inaya
  • Suryantini, Any
  • Waluyati, Lestari Rahayu

Abstract

The existence of financial institutions is very important to support the availability of capital. This research aims to know (1) accessibility of chili farmers on formal and nonformal financial institution, (2) perception of chili farmers on formal and nonformal financial institution, and (3) factors influencing perception of chili farmers on financial institution. The basic method of this research is descriptive and regression analysis. Data obtained by survey and samples were selected by simple random sampling amounted 60 chili farmers consists of 30 farmers at Dadapan Hamlet and 30 farmers at Semimpen Hamlet. The analysis method used in this research are proportion test, one-sample Z test, paired sample t test, and multiple linear regression analysis. The research results show that farmer’s accessibility on formal financial institution and nonformal financial institution is categorized as high. Chili farmers has positive perception on formal and nonformal financial institutions. Perception of chili farmers on nonformal financial institution is higher than that of formal financial institution. Factors that affect the chili farmers perception on financial institution are age and credit experience on nonformal institution. Farmer’s age negatively influencing their perception on financial institution, meanwhile credit experience on nonformal institution has a positive influence.

Suggested Citation

  • Cahyaningtyas, Inaya & Suryantini, Any & Waluyati, Lestari Rahayu, 2022. "Perception and Accessibility of Chili Farmers Towards Formal and Nonformal Financial Institution in Magelang Regency," Journal of Agribusiness Management and Development (JAMADev), Universitas Gadjah Mada, Department of Agricultural Socio-Economics, vol. 3(2).
    • Handle: RePEc:ags:jamdev:407714
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