The Role of Non-formal Institution in the Development of Farming-based Area in Bandungan Sub-district, Semarang District

Abstract

On agriculture sector development, institutions play an important role in developing technology and resources, following its contribution to develop units of production and supporting institutions. In general, the role of non-formal institutions is regarded more influential to upgrading local farmers’ bargaining position. Moreover, the government tends to attract wider involvement from such institutions in order to succeed government programs. Although there have been non-formal institutions which traditionally established, its roles have not optimal yet. Hence, the research question is “How is the role of non-formal institutions in agriculture-based regional development?”According to analysis, agriculture-based regional development in Bandungan Sub-district has been supported by Poktan as non-formal institution. That role is better than the role of formal institutions for creating collective actions and transferring knowledge. Yet, these roles have not completely controlled the agricultural development related to the units of production and supporting institutions because of traditional values. Poktan only has the role in input activities. It has not created collective actions in production and output activities. The farmers are more interested to do activities individually. Moreover, Poktan does not have bargaining position in output activities (marketing). Therefore, based on Uphoff’s theory (1986:114), the role of local institutions are not appropriate for the case of output activities in Bandungan. Besides that, Uphoff (1986) has not included traditionalize values – solidarity, flexibility of rules and dependence with local actors – as social capital’s variables also influence the performance of non-formal agricultural institutions.