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

Iman Widhiyanto, Nunung Nuryartono (), Harianto Harianto and Hermanto Siregar
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Iman Widhiyanto: Directorate General of Treasury, Ministry of Finance Republic of Indonesia, Jl. Lapangan Banteng Timur No1-2 Jakarta, Indonesia
Harianto Harianto: Department of Economics, Faculty of Economic and Management, Bogor Agricultural University, Kampus Dramaga, Jln. Raya Dramaga Bogor Jawa Barat, Indonesia

International Journal of Economics and Financial Issues, 2018, vol. 8, issue 3, 148-159

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.

Keywords: agricultural; credit accessibility; financial literacy; interest rates subsidy (search for similar items in EconPapers)
JEL-codes: G21 H25 Q14 Q18 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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