The Impact of Internet Access Contributing to Farmers' Welfare in Indonesia: A Case Study Based on National Socio-Economic Survey
Abstract
Research Originality: This study highlights the transformative role of digitalization, particularly the use of internet networks and mobile phones, in addressing these challenges and enhancing the welfare of farmers.
Research Objectives: This research aims to analyze the impact of internet usage on farmers' welfare in Indonesia. Specifically, it examines how access to digital tools can bridge the knowledge gap in the agricultural sector and improve economic outcomes, focusing on regional disparities between Western and Eastern Indonesia.
Research Methods: This study uses National Socio-Economic Survey (Susenas) data and the ordered probit model with marginal effects.
Empirical Results: Farmers in the upper-middle expenditure group can leverage the Internet and mobile phones to access production information, markets, and farm credit, supported by better finances and education. In contrast, low-income farmers, particularly in eastern Indonesia, face barriers such as costs, limited infrastructure, and low digital literacy, hindering technology adoption to improve welfare.
Implications: The government is expected to address this digital divide by accelerating the development of internet infrastructure in rural areas, improving digital literacy, subsidizing technological devices, and developing accessible agricultural applications.
JEL Classification: D6, I24, L86, Q12
Keywords
References
Abdel-Aty, M. (2003). Analysis of Driver Injury Severity Levels at Multiple Locations Using Ordered Probit Models. Journal of Safety Research, 34(5), 597–603.
Ali, S., Jabeen, U. A., & Nikhitha, M. (2016). Impact of ICT's on Agricultural Productivity. European Journal of Business, Economics and Accountancy , 4(5), 82-92.
Ardianti, D., Hartono, D., & Widyastaman, P. (2023). Offline and Hungry: the Effect of Internet Use on the Food Insecurity of Indonesian Agricultural Households. Agricultural and Food Economics, 11(25).
Büchi, M., Festic, N., & Latzer, M. (2019). Digital Overuse and Subjective Well-being in a Digitized Society. Social Media+ Society, 5(4), 2056305119886031.
Chang, H. H., & Just, D. R. (2009). Internet Access and Farm Household Income - Empirical Evidence Using a Semi-Parametric Assessment in Taiwan. Journal of Agricultural Economics, 60(2), 348-366.
Chen, J.-H., & Tsai, W.-C. (2012). A Comparison of International Income Inequality: an Ordered Probit Model Analysis. Applied Economics, 44(13), 1701–1716.
Chen, W., Wang, Q., & Zhou, H. (2022). Digital Rural Construction and Farmers’ Income Growth: Theoretical Mechanism and Micro Experience Based on Data from China. Sustainability, 14(18), 11679. https://doi.org/10.3390/su141811679.
Daykin, A. R., & Moffatt, P. G. (2002). Analyzing Ordered Responses: A Review of the Ordered Probit Model. Understanding Statistics, 1(3), 157–166.
Fauziyah, E. (2018). Access and Control of Farm Households in the Management of Private Forest Resources. Jurnal Agroforestri Indonesia, 1(1), 33-45.
Greene, W. H. (2003). Econometric analysis (5th ed.). New Jersey: Prentice Hall.
Gurning, D. J., Damanik, E. O., & Sinaga, M. H. (2024). Pengaruh Gender, Literasi Keuangan Dan Lifestyle Terhadap Tingkat Kesejahteraan Keluarga Petani Kelapa Sawit Di Pematang Kerasaan. Manajemen: Jurnal Ekonomi USI, 6(2), 344-360.
Gusti, I. M., Gayatri, S., & Prasetyo, A. S. (2021). The Affecting of Farmer Ages, Level of Education, and Farming Experience toward the Level of Farmer Knowledge about Benefit and Application Method of Kartu Tani in Parakan District. Jurnal Litbang Provinsi Jawa Tengah, 19(2), 209-221.
Hamill, S. (2017). Strengthening Agricultural Market Access with ICT. Washington DC: The World Bank.
Handika, I., & Sulistiawati, A. (2021). Use and Utilization of the Internet for Agriculture and Its Role on Farmers’ Income Levels (Case: Gapoktan Bina Tani Wargi Pugupay Suntenjaya Village, Lembang District, West Bandung Regency). Jurnal Sains Komunikasi dan Pengembangan Masyarakat, 5(2), 233–255.
Harahap, L. M., Pakpahan, T. G., Wijaya, R. A., & Nasution, A. Z. (2024). Dampak Transformasi Digital pada Agribisnis: Tantangan dan Peluang bagi Petani di Indonesia. Publikasi Ilmu Tanaman dan Agribisnis (BOTANI), 1(2), 99-108.
Hausman, J. A., Lo, A. W., & MacKinlay, A. C. (1992). An Ordered Probit Analysis of Transaction Stock Prices. Journal of Financial Economics, 31(3), 319–379.
Hildayanti, S. K., Jenahar, T. J., & Oemar, H. (2017). Faktor-Faktor yang Mempengaruhi Pengeluaran Rumah Tangga Petani Karet di Kabupaten Banyuasin Sumatera Selatan. Jurnal Ecoment Global, 2(2), 57-62.
Hong, Y.-Z., & Chang, H.-H. (2020). Does Digitalization Affect the Objective and Subjective Wellbeing of Forestry farm Households? Empirical Evidence in Fujian Province of China. Forest Policy and Economics, 118, 102236.
Ilyas. (2022). Optimizing the Role of Millennial Farmers and Agricultural Digitalization in Agricultural Development in Indonesia. Forum Ekonomi: Jurnal Ekonomi, Manajemen dan Akuntansi, 24(2), 259-266.
Iskandar, E., Amanah, S., Hubeis, A. V., & Sadono, D. (2020). Factors Affecting Internet Literacy of Smallholder Cocoa Farmers in Aceh, Indonesia. International Journal of Advanced Science and Technology, 29(5), 4074 - 4084.
Istriningsih, A., Dewi, Y. A., Yulianti, A., Hanifah, V. W., Jamal, E. G., Sarwani, M., Mardiharini, M., Anugrah, I. S., Darwis, V., Suib, E., Herteddy, D., Sutriadi, M. T., Kurnia, A., & Harsanti, E. S. (2022). Farmers' Knowledge and Practice Regarding Good Agricultural Practices (GAP) on Safe Pesticide Usage in Indonesia. Heliyon, 8(1), e08708.
Javaid, M., Haleem, A., Singh, R. P., & Suman, R. (2022). Enhancing Smart Farming Through the Applications of Agriculture 4.0 Technologies. International Journal of Intelligent Networks, 3, 150-164.
Johnston, C., McDonald, J., & Quist, K. (2020). A Generalized Ordered Probit Model. Communications in Statistics - Theory and Methods, 49(7), 1712–1729.
Khan, N., Qijie, G., Ali, S., Shahbaz, B., & Shah, A. (2019). Farmers’ Use of Mobile Phone for Accessing Agricultural Information in Pakistan. Ciência Rural, 49(10). https://doi.org/10.1590/0103-8478cr20181016.
Koç, & P. (2017). Internet Addiction and Subjective Wellbeing in University Students. Journal of Positive School Psychology, 1(1), 34–41.
Ma, W., & Wang, X. (2020). Internet Use, Sustainable Agricultural Practices and Rural Incomes: Evidence from China. The Australian Journal of Agricultural and Resource Economics, 64(4), 1087–1112.
Ma, W., & Zheng, H. (2021). Heterogeneous Impacts of Information Technology Adoption on Pesticide and Fertiliser Expenditures: Evidence from Wheat Farmers in China. The Australian Journal of Agricultural and Resource Economics, 66(1), 72-92.
Ma, W., Nie, P., Zhang, P., & Renwick, A. (2020). Impact of Internet Use on Economic Well-Being of Rural Households: Evidence from China. Review of Development Economics, 24(2), 503–523.
Mihailova, M. (2022). Relationship between Rent Prices and Agricultural Land Prices. Bulgarian Journal of Agricultural Science, 28(1), 26–35.
Moeis, F., Dartanto, T., Moeis, J., & Ikhsan, M. (2020). A Longitudinal Study of Agriculture Households in Indonesia: The Effect of Land and Labor Mobility on Welfare and Poverty Dynamics. World Development. Perspectives, 20, 100261.
Noreen, E. (1988). An Empirical Comparison of Probit and OLS Regression Hypothesis Tests. Journal of Accounting Research, 26(1), 119.
Norton, E. C., Dowd, B. E., & Maciejewski, M. (2019). Marginal Effects—Quantifying the Effect of Changes in Risk Factors in Logistic Regression Models. JAMA, 321(13), 1304–1305.
Norton, E., & Dowd, B. E. (2018). Log Odds and the Interpretation of Logit Models. Health Services Research, 53(2), 859-878.
Owusu, A. B., Yankson, P. W., & Frimpong, S. (2018). Smallholder Farmers’ Knowledge of Mobile Telephone Use: Gender Perspectives and Implications for Agricultural Market Development. Progress in Development Studies, 18(1), 36-51.
Pasaribu, M., & Istriningsih. (2020). Pengaruh Status Kepemilikan Lahan terhadap Pendapatan Petani Berlahan Sempit di Kabupaten Indramayu dan Purwakarta. Jurnal Pengkajian dan Pengembangan Teknologi Pertanian, 23(2), 187-198.
Peel, M. J., Goode, M. M., & Moutinho, L. A. (1998). Estimating Consumer Satisfaction: OLS versus Ordered Probability Models. International Journal of Commerce and Management, 8(2), 75–93.
Rahman, M. S., Hery Toiba, N. T., Hartono, R., Shaleh, M. I., Sugiono, S., & Saeri, M. (2023). Does Internet Use Make Farmers Happier? Evidence from Indonesia. Cogent Social Sciences, 9, 2243716.
Rozci, F., & Oktaviani, D. A. (2023). Analysis of the Causes of Decreasing Interest and Participation of Young Generation in the Agricultural Sector. Jurnal Ilmiah Manajemen Agribisnis,, 11(1), 48-56.
Sánchez, A. C., Kamau, H. N., Grazioli, F., & Jones, S. K. (2022). Financial Profitability of Diversified Farming Systems: A Global Meta-Analysis. Ecological Economics, 201, 107595. https://doi.org/10.1016/j.ecolecon.2022.107595.
Siaw, A., Jiang, Y., Ankrah Twumasi, M., & Agbenyo, W. (2020). The Impact of Internet Use on Income: The Case of Rural Ghana. Sustainability, 12(8), 3255.
Siregar, R. (2016). Hubungan Karakteristik Penyuluh dengan Kinerja Penyuluh Pertanian di Kabupaten Simalungun. Jurnal Agrica Ekstensia, 10(2), 35–44.
Sujaya, D. H., Hardiyanto, T., & Isyanto, A. Y. (2018). Faktor-Faktor yang Berpengaruh terhadap Produktivitas Usaha Tani Mina Padi di Kota Tasikmalaya. Jurnal Pemikiran Masyarakat Ilmiah Berwawasan Agribisnis, 4(1), 25-39.
Suriani, N., Sari, Y. P., Handayani, F., & Noviar, H. (2023). The Younger Generation and the Future of Agriculture. Jurnal Triton, 14(2), 384-392.
Tadesse, G., & Bahiigwa, G. (2015). Mobile Phones and Farmers’ Marketing Decisions in Ethiopia. World Development, 68(C), 296-307.
UN High-Level Panel on Digital Cooperation. (2019). The Age of Digital Interdependence. New York: United Nations.
Whitacre, B., Gallardo, R., & Strover, S. (2014). Broadband׳s Contribution to Economic Growth in Rural Areas: Moving Towards a Causal Relationship. Telecommunications Policy, 38(11), 1011-1023.
Williams, R. (2016). Understanding and Interpreting Generalized Ordered Logit Models. The Journal of Mathematical Sociology, 40(1), 7–20.
Wu, Y., Duan, K., & Zhang, W. (2023). The Impact of Internet Use on Farmers’ Land Transfer under the Framework of Transaction Costs. Land, 12(10), 1855.
Yang, H.-L., Yuan-Yang, W., Lin, X.-Y., Xie, L., Zhang, S., Zhang, S.-Q., Ti, S. M., Zheng, X.-D. (2021). Internet Use, Life Satisfaction, and Subjective Wellbeing among the Elderly: Evidence from 2017 China General Social Survey. Frontiers in Public Health, 9, 677643.
Yuan, F., Tang, K., & Shi, Q. (2021). Does Internet Use Reduce Chemical Fertilizer Use? Evidence from Rural Households in China. Environmental Science and Pollution Research, 28(5), 6005–6017.
Yuan, F., Tang, K., & Shi, Q. (2021). Does Internet use Reduce Chemical Fertilizer Use? Evidence from Rural Households in China. Environmental Science and Pollution Research, 28(5), 6005–6017.
Zhang, F., Sarkar, A., & Wang, H. (2021). Does Internet and Information Technology Help Farmers to Maximize Profit: A Cross-Sectional Study of Apple Farmers in Shandong, China. Land, 10(4), 390.
Zhao, Q., Pan, Y., & Xia, X. (2021). Internet Can Do Help in the Reduction of Pesticide Use by Farmers: Evidence from Rural China. Environmental Science and Pollution Research, 28(2), 2063–2073.
Zheng, H., Wanglin, M., Wang, F., & Gucheng, L. (2021). Does Internet Use Improve Technical Efficiency of Banana Production in China? Evidence from a Selectivity-Corrected Analysis. Food Policy, 102, 102044.
Zhu, Z., Wanglin, M., Leng, C., & Nie, P. (2021). The Relationship between Happiness and Consumption Expenditure: Evidence from Rural China. Applied Research in Quality of Life, 16(4), 1587–1611.
DOI: 10.15408/sjie.v13i2.43188
Refbacks
- There are currently no refbacks.
