THE TRADITIONAL CONTRACT SYSTEM - IT’S ROLE TO THE DEVELOPMENT OF SMALL SCALE PALM SUGAR INDUSTRY IN BENGKULU

Romdhon, M. Mustopa (2016) THE TRADITIONAL CONTRACT SYSTEM - IT’S ROLE TO THE DEVELOPMENT OF SMALL SCALE PALM SUGAR INDUSTRY IN BENGKULU. In: Proceeding ISEPROLOCAL. Badan Penerbitan Fakultas Pertanian Universitas Bengkulu, Bengkulu, Indonesia, pp. 342-346. ISBN 9786029071184

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Abstract

The small scale palm sugar industry is having significant contribution to strengthen rural economics‘ structure. Unfortunately, in rural area there is less developed transportation and communication network so as competitive market economy. Thus, the agent‘s in rural area is facing many barriers such as less price information, limited numbers of agricultural inputs both timely and spatially. As the result, the palm sugar agent creates another alternative exchange institution of the principle – agent type of relationship that dominated rural economy, even taking lower profit share. For that purposes, the study describes role of the contract system mechanism in the small-scale palm sugar industry. This research was conducted on July to Augusts 2011 by survey approach. The descriptive analysis was utilized to explaining the existence of traditional contract system.. There are four types of perennial crops, especially of palm used for sugar making between the tappers and the owners. The contract offers both guaranteed market and purchased price to tappers who have never had assurance. The evidences show the traditional contract system of small palm sugar industry supposed to be sustained a monopoly market

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