STAKEHOLDER PERCEPTIONS OF THE FAILURE OF ORGANIC RICE CULTIVATION IN PURBALINGGA REGENCY FROM THE FINANCING ASPECT

Lutfi Zulkifli; Malinda Aptika Rachmah; Dewanti Risa Utami

doi:10.20884/2.procicma.2025.1.1.21086

Lutfi Zulkifli Department of Agricultural Socio-Economic, Faculty of Agricultural, Jenderal Soedirman University, Purwokerto, Central Java, 53123
Malinda Aptika Rachmah Department of Agricultural Socio-Economic, Faculty of Agricultural, Jenderal Soedirman University, Purwokerto, Central Java, 53123
Dewanti Risa Utami Department of Agricultural Socio-Economic, Faculty of Agricultural, Jenderal Soedirman University, Purwokerto, Central Java, 53123

DOI: https://doi.org/10.20884/2.procicma.2025.1.1.21086

Abstract

Organic rice cultivation in Penolih Village, Purbalingga Regency, received INOFICE Organic certification (2018-2020), but the certification was revoked in 2021. This study aims to examine stakeholders' perceptions of the role of financing in the failure of organic rice cultivation in Penolih Village, Purbalingga Regency. Data were obtained through Focus Group Discussions (FGDs) involving farmers and administrators of the Mekarsari Farmers' Group (Gapoktan Mekarsari), Penolih Village officials, Kaligondang District Extension workers, and the Purbalingga Regency Agriculture Office. The research method used was qualitative-descriptive with FGDs. The results of the discussions indicated that although capital is a crucial need, most farmers still rely on personal funds. Access to banking and cooperative financing is considered suboptimal due to complicated procedures, collateral requirements, and mandatory membership. Government assistance is limited to grants, fertilizer subsidies, and technical training, while financial literacy training is unevenly distributed. The majority of stakeholders believe that the failure of organic rice cultivation is caused by marketing aspects, low farmer independence, and high certification costs. The practice of obtaining capital through middlemen remains widespread, leaving farmers tied to the debt bondage system. The main obstacles to agricultural financing are collateral and complex bureaucracy. Therefore, solutions are proposed to simplify credit procedures, increase capital support, strengthen farmer group cash flows, and partner with the private sector and village-owned enterprises (BUMDes). These findings indicate that farmers in Penolih Village need not only financially support but also support for independence in farm management and market strengthening.