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Maritime Infrastructure and Regional Development

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Maritime Infrastructure and Regional Development Maritime Infrastructure and Regional Development Manado, July 17-18 2017 Collection of Abstracts Faculty of Economics and Business, Sam Ratulangi University Indonesian Regional Science Association Manado, July 17-18 2017 The 6th International Institute Maritime Infrastructure and Regional Development Collection of Abstracts Organizers: Faculty of Economics and Business, Sam Ratulangi University ISSN: 2088-7418 TABLE OF CONTENTS Agriculture and Rural Development......................................................1 Financing Regional Development...........................................................4 Health..........................................................................................................6 Human Resource Development.............................................................9 Human Resource Development...........................................................12 Industrial Development..........................................................................14 Natural Resource Management.............................................................17 Public Sector and Development.........................................................19 Trade and Macroeconomy....................................................................21 Agriculture and Rural Development....................................................24 Financing Regional Development........................................................26 Growth and Regional Development....................................................30 Health..................................................................................................33 Households and Communities...........................................................37 Human Resource Development.........................................................40 Natural Resource Management..........................................................44 Public Sector and Development.........................................................47 Trade and Macroeconomy...................................................................50 SDGs Special Session...........................................................................53 Agriculture and Rural Development....................................................56 Financing Regional Development......................................................58 Growth and Regional Development...................................................61 Health.............................................................................................64 Households and Communities..........................................................68 Human Resource Development..........................................................71 Migration and Demography...............................................................74 Natural Resource Management..........................................................78 Regional Connectivity......................................................... .................81 Trade and Macroeconomy...................................................................85 Agriculture and Rural Development....................................................88 Financing Regional Development.......................................................91 Growth and Regional Development.................................................94 Infrastructure Development..............................................................97 Institutions and Governance............................................................101 Inter-Regional Disparity......................................................................104 Natural Resource Management........................................................108 Poverty Alleviation...............................................................................111 Regional Planning.................................................................................114 Financing Regional Development.....................................................118 Growth and Regional Development................................................121 Industrial Development......................................................................123 Infrastructure Development..............................................................125 Institutions and Governance...........................................................128 Inter-Regional Disparity......................................................................130 Migration and Demography..............................................................133 Natural Resource Management......................................................136 Poverty Alleviation...............................................................................138 Regional Connectivity.........................................................................141 Agriculture and Rural Development.................................................143 Growth and Regional Development.................................................146 Households and Communities..........................................................148 Financing Regional Development.....................................................151 Inter-Regional Disparity......................................................................153 Migration and Demography............................................................156 Natural Resource Management........................................................159 Poverty Alleviation..............................................................................162 Regional Connectivity.........................................................................165 Collection of Abstract the 6th IRSA International Institute Agriculture and Rural Development PAR A1: Agriculture and rural Development Risk Preference and the Tendency of Fertilizer Overuse Moko Nugroho, Alin Halimatussadiah Universitas Indonesia, Indonesia Farmers’ welfare depends on crops production and soil fertility. The usage of fertilizer is expected to increase crops production, yet it may cause the soil fertility to decline. In the case of paddy, there is indication that the use of fertilizer most likely driven by productivity as the objective without taking into accounts the effect on soil fertility. Farming lands in Java have been degraded since eight decades ago. On average, Indonesian paddy farmers consume 304 kg of fertilizer per hectare of cultivated land (National Farmer Household Panel Survey/Patanas 2007). In dry season, the figure became 307 kh/ha. It was slightly decreased in 2010 to 285 kg/ha. However, the amount of fertilizer used in for farming was still above the recommended value. Referring to Ministry of Agriculture Regulation No. 40/2007, farmers are advised to use fertilizer not greater than 250 kg/ha to balance nutrients in the soil. Several studies examined farmer’s behavior concerning fertilizer usage in Indonesia. However, those studies are limited to farmer’s response towards fertilizer subsidy and impact of fertilizer usage to productivity. This study fills the knowledge gap by analysing farmer’s risk preference on decision in using fertilizers. We employ logistic regression in the main model, adopting methodology by Liu & Huang (2013), in analyzing the determinants of fertilizer overusing. Besides that, we also refer to Kumbhakar & Tveteras (2003) in estimating the farmers’ risk preference (theta). We hypothesized that household with tendency to avert risk would have higher probability to use fertilizer above the recommendation. In the study, we use secondary panel data from Patanas which was conducted in 2007 and 2010. Based on the estimation, we found that Indonesian farmers, in general, are risk averse given that the theta value is below than zero. The result is consistent with our hypothesis and Liu and Huang (2013) showing that risk preference (theta) has significant negative relationship with dependent variable. It means that farmers with tendency to be risk averse will allocate fertilizer above the recommended level to increase the productivity. Price of fertilizer has also significant negative impact to the dependent variable implying that the increase in fertilizer price may disincentive the farmers to use fertilizer excessively. Other control variables also have significant impact to the dependent variables. IRSA 2017 1 Collection of Abstracts the 6th IRSA International Institute To avoid further land degradation, we suggest the government to shift fertilizer subsidy to other infrastructures needed by farmers such as irrigation system, farming tools as well as crops marketing system. Shifting the subsidy may not only prevent farmers to use excessive fertilizer, but also boost the crop production given the improvement in other infrastructures. Remittance and Rural Development in Indonesia Inayah Hidayati LIPI, Indonesia In Indonesia rural society life, remittance or usually they call “kiriman” besides being sent to migrant families, is also sent to members of village society and for village’s needs. Remittance sent to families is more economic and routine since it is used to meet the families’ life necessities, education and health, as well as to support the life necessities of whom are taking care of the family during the migrants are in destination areas. The data collected included qualitative data from in-depth interviews and supported by study literatures. An interview guide was formulated to facilitate the in-depth interviews and generate a better understanding of migration and remittances behavior. Expectations of this
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