Government Policy in Strengthening Social Capital for Poverty Reduction of Farmers

Abstract

The government policies on the agricultural sector have led to a breakthrough on various platforms for Indonesian farmers, and this strengthens social networks. The policies formulated include training, counseling, and establishing banking networks for capital access to increase social capital. Therefore, this study aimed to improve the quality of the Indonesian farming community and increase their rice yields. The data was collected from Tamiang, Central Aceh, and Pidie Jaya regions using the qualitative method. The results showed that the government had an integrated poverty reduction model with various strategies, including a) enhancing the social capital in Aceh by encouraging the utilization of vacant land, b) opening access to capital and farmer insurance, c) strengthening the capacity of extension workers, d) leading comparative studies and training for farmers, and e) providing business capital aid through government grants. This model successfully reduced the poverty rate in Aceh from 18.58% in 2012 to 15.33% in 2021. However, every implemented government program needs to be periodically evaluated to ensure its success.