The Demographic Institute of the Faculty of Economics and Business, Universitas Indonesia (DI FEB UI) in 2021 collaborated with the Ministry of Agriculture in the Youth Entrepreneur and Employment Support Services (YESS) program, in three areas of study, namely a provincial mapping study on access to financial services in the four provinces where the YESS program is located; market and value chain assessment; and labor market analysis and mapping of job potential for various youth profiles.
The results of the study show that almost half (42%) of young entrepreneurs in the agriculture sector are a high-potential group to be encouraged to access banking financial services. There are 31% of young entrepreneurs who face barriers in accessing banking financial services. This second group is the main priority that needs assistance, such as socialization and education on capital schemes available at partner financial institutions.
In addition, program providers also need to collaborate with banking financial service partners so that beneficiaries can be facilitated with micro and or ultra-micro financing schemes according to the characteristics of each region and business. This was presented by representatives of the DI FEB UI research team Endang Antarwati S.E., M.E., Ir. Nur Hadi Wiyono, M.Si., and Drs. Asmanedi, M.Si., online on Friday (31/12).
The study also revealed the youth’s perspective on agriculture, that working in agriculture is dirty, tiring, and unprofitable. This indicates that interest in the agricultural sector is still minimal. On the other hand, it was found that profitable agriculture is in the value chain of marketing and processing agricultural products.
Therefore, efforts to attract young farmers in the agricultural sector can be made by encouraging youth to be involved in the marketing/distribution of agricultural products orprocessing. The government can encourage those interested in the cultivation aspect to use agricultural technology (smart farming) to increase productivity.
In addition to the application of technology, marketing guarantees for agricultural products need to be developed with partners, companies, cooperatives, or other business entities. These efforts need to be strengthened to attract and support youth to engage in the agricultural sector.
