2. SOCIO-ECONOMIC FACTORS EFFECTING TO THE IMPLEMENTATION OF BUSINESS MANAGEMENT AND PRIMATANI TECHNOLOGY AND NET INCOME OF BANANA AGRIBUSINESS (A Case Study of a Project of Primatani in Cugenang Subdistrict, Cianjur, Indonesia) THE 10TH TRIPLE HELIX INTERNATIONAL CONFERENCE, BANDUNG, 8 – 10 AUGUST 2012 ASEP DARMANSYAH HENY PURWANINGSIH IDA MARINA

3. OUTLINE BACKGROUND GOALS AND OBJECTIVES RESEARCH METHOD STATE OF RESEARCH AREAS RESULTS OF RESEARCH CONCLUSIONS AND RECOMMENDATIONS

4. *INDONESIA IS A PRODUCER AND EXPORTER *CIANJUR IS ONE OF CENTERS OF BANANAS PRIMATANI IS AN ACCELERATION OF INNOVATION SOSIALIZATION OF AGRICULTURAL TECHNOLOGY ASSISTANCE MANAGEMENT AND TECHNOLOGY, AND INSTITUTIONAL STHRENGTENING OF FARMING SOCIO-ECONOMIC SITUATION OF BANANA FARMERS PRODUCTION, INCOMES AND WELFARE OF FARMERS

5. MAP OF BANANA CENTERS IN CIANJUR CIBEBER GEKBRONG AGRABINTA SUKARESMI CIKALONG KULON CIBINONG SINDANGBARANG CIDAUN 229 Ha CUGENANG 96 Ha 479 Ha 893 Ha 911 Ha 92 Ha 295 Ha 370 Ha 197Ha Regional Development Plan Reference : Agriculture Office of Cianjur, 2010

6. GOALS AND OBJECTIVES GOALS The influence of socio-economic factors of banana farmers simultaneously on the application of business management and primatani technology The influence of socio-economic factors of banana farmers partially to the application of business management and primatani technology The influence of the application of business management and primatani technology on net income of banana agribusiness The influence of socio-economic factors of banana farmers simultaneously on the application of business management and primatani technology The influence of socio-economic factors of banana farmers partially to the application of business management and primatani technology The influence of the application of business management and primatani technology on net income of banana agribusiness

7. Farmers of banana in Cugenang District, Cianjur, Indonesia OBJECTIVES

8. RESEARCH METHODS Survey method Variables : - Socio-economic factors of banana farmers (X) - Implementation of business management and primatani technology (Y) - Net income of banana agribusiness (Z) Data collection techniques : - Interview - Study of literatures Data Analysis : - Data (ordinal) are changed to interval with MSI - Descriptive analysis - Statistical analysis (regression analysis and different test)

9. Research Paradigm SOCIO-ECONOMIC FACTORS (X) Large of land Age of farmers Business experience Education of farmers Dependent family Source of business financing Product Selling Price Determination THE IMPLEMENTATION OF BUSINESS MANAGEMENT AND PRIMATANI TECHNOLOGY (Y) NET INCOME OF BANANA AGRIBUSINESS (Z)

10. State of Research Areas Located in the northern part of West Java, about 80 km south of Jakarta Region of highlands with altitude 700-1,200 meters above sea level. Average rainfall in Cugenang for 10 years is 2,724 mm / year 88.51% of the area is dominated by agricultural and plantation land Intercropping planting Plantations are small scale, scattered location, low fruit quality Number of farmer groups (Sarampad : 4, Talaga : 6, Padaluyu : 5) Production per month (Ambon Lumut : 236 tons, Ambon Putih : 186 ton, Nangka : 89 tons, Raja Bulu : 83 tons, Tanduk : 20.5 ton,s Mas : 3.5 tons)

11. RESULTS OF RESEARCH Age Large of Land

14. Dimension %Category Business Planning68Good Businesss Organization69Good Financial Management 66Good Bookkeeping Business66Good Cropping Pattern68Good Farming Techniques68Good Plant Pest and Disease Control69Good Post Harvest Handling66Good The Application of Business Management and Primatani Technology

15. The influence of socio-economic factors of banana farmers simultaneously on the application of business management and primatani technology Y = 3,453 X 1 1,289 X 2 -0,576 X 3 0,212 X 4 0,728 X 5 0,426 X 6 0,944 X 7 -0,618 The model of multiple linear regression show highly significant indicated by the F count = 13.526 is much larger than F table = 4.88. Socio-economic factors simultaneously have a significant effect on the application of business management and primatani technology

16. (R 2 ) = 0.7251 72.51 % of variability on the application of business management and primatani technology on banana agribusiness can be explained by socio-economic factors variable. 27.49 % is explained by other variables outside the model. Coefficient of Determination (R 2 )

17. The influence of the application of business management and primatani technology on net income of banana agribusiness The influence of the application of business management and primatani technology on net income of banana agribusiness Based on analysis of different test pairs on average. It is significant effect in the error rate ( α ) = 5%. The application of business management and primatani technology significantly affect on net income of banana agribusiness

18. The application of business management and primatani technology is simultaneously influenced by socio-economic factors of farmers of banana agribusiness Socio-economic factors, those are together can be used as a model to predict changes on the application of business management and primatani technology Partially, socio-economic factors significantly affect positively on the application of business management and primatani technology are large of land, farmers education, dependent family of farmers, and source of business financing. All five have a positive production elasticity and elastic CONCLUSIONS CONCLUSIONS AND RECOMMENDATIONS

19. Partially, socio-economic factors aren’t significant effect on the application of business management and primatani technology are age of farmers, business experience, and determination of selling price There are socio-economic factors that namely age of farmers and determination of product selling price. Both have a negative production elasticity and inelastic Socio-economic factors that namely large of land has the most elastic of production elasticity than other socio-economic factors. The application of business management and primatani technology significantly affect on net income of banana agribusiness. CONCLUSIONS

20. Institutional development of agriculture should encourage the creation of microfinance institutions that can provide financial assistance to farmers in the business capital Agricultural institutions in primatani should have the power to banana farmers to enter a perfectly competitive market together to compete with the buyers / consumers in global markets The primatani model should also be developed on a group of farmers who have larger of land for banana agribusiness rather than farmers who own less RECOMMENDATIONS

21. The primatani program is that should pay attention to the regeneration of farmers and organizational restructuring of agriculture on an ongoing basis Optimal size of each socio-economic factors that give optimal effect on net income of banana agribusiness need to be defined more clearly and definitely. Therefore more further research are needed more in- depth. RECOMMENDATIONS

22. Wassalammu’alaikum wr. Wb