Informal Contract Farming Practices In Indonesia (A Literature Review Approach)

Abstract

The purposes of the research are (1) to describe models of contract in agriculture (specially for informal contact farming) that already develope in Indonesia including the strenght and weakness for each contract. (2)Giving suggesstion for development of the contract to create equity for small farmer in Indonesia.The result shows that Agriculture Inclusive Models is the model that develop to considering small farmer in the activities. The part of the model is contract farming that define as a contract between small farmer and agribussiness stakeholder that have conditional and specific terms. The contract made to provide security for farmer consider to capital provision and supply guaranty. There are informal contract that have develop in Indonesia such as subak, ijon, sakap. However there are a lot weakness that found in practice in informal contract farming so there need a improvement to protect small farmer’s interest.

Keywords : inclusive model, informal contract farming, small farmer