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The Analysis of Farmers' Financial Literacy and its' Impact on Microcredit Accessibility with Interest Subsidy on Agricultural Sector

Author

Listed:
  • Iman Widhiyanto

    (Directorate General of Treasury, Ministry of Finance Republic of Indonesia, Jl. Lapangan Banteng Timur No1-2 Jakarta, Indonesia)

  • Nunung Nuryartono

    (Department of Economics, Faculty of Economic and Management, Bogor Agricultural University, Kampus Dramaga, Jln. Raya Dramaga Bogor Jawa Barat, Indonesia,)

  • Harianto Harianto

    (Department of Economics, Faculty of Economic and Management, Bogor Agricultural University, Kampus Dramaga, Jln. Raya Dramaga Bogor Jawa Barat, Indonesia)

  • Hermanto Siregar

    (Department of Economics, Faculty of Economic and Management, Bogor Agricultural University, Kampus Dramaga, Jln. Raya Dramaga Bogor Jawa Barat, Indonesia.)

Abstract

The government of Indonesia has been rolling out the Food Security and Energy Credit (KKP-E) with interest rate subsidy since 2008 for the people who have no access to banking but have a feasible business. This study aims (1) to analyze the level and influence variables of respondents' financial literacy and (2) to analyze the variables that influence the farmers' accessibility to KKP-E. The methods used are multiple regressions and logistic analysis. The results show that the levels of financial literacy are in the medium categories, which variables affected consist of age, education duration, distance to the capital regency location, annual income, bank account ownership, and financial education experiences. The variables influence of KKP-E accessibility consists of farms' income, the width of the cultivated area, collateral, interest rate, financial literacy index, farmer group legal status, credit accessibility experiences, and loan amount. Financial literacy significantly influences the KKP-E accessibility.

Suggested Citation

  • Iman Widhiyanto & Nunung Nuryartono & Harianto Harianto & Hermanto Siregar, 2018. "The Analysis of Farmers' Financial Literacy and its' Impact on Microcredit Accessibility with Interest Subsidy on Agricultural Sector," International Journal of Economics and Financial Issues, Econjournals, vol. 8(3), pages 148-159.
    • Handle: RePEc:eco:journ1:2018-03-19
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    References listed on IDEAS

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    1. Happiness Ozioma Obi-Anike & Ogohi Cross Daniel & Ifeoma Joanes Onodugo & Ikechukwu Joseph Attamah & Benedict Ogbemudia Imhanrenialena, 2023. "The Role of Financial Information Literacy in Strategic Decision-Making Effectiveness and Sustainable Performance among Agribusiness Entrepreneurs in Nigeria," Sustainability, MDPI, vol. 15(13), pages 1-17, July.

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    More about this item

    Keywords

    agricultural; credit accessibility; financial literacy; interest rates subsidy;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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