Abstract:
Agriculture is a sector that has unbelievably important role in the economy. Agriculture
and rural areas is an integral and inseparable. Agriculture is the main component that
sustains rural and urban life in Indonesia in general and especially Indragiri Hulu
regency. What happens in pertaniaan will directly affect rural development and vice
versa. One of the agricultural sub-sectors experienced very rapid growth is sub Riau
dipropinsi plantation sector. In Indragiri Hulu regency, there are 9 types of commodities
that are grown; rubber, coconut, oil palm, cocoa, coffee, areca nut, pepper, palm,
involving as many as 90,092 households. Under these conditions, smallholders have
limitations to improve productivity due to limited working capital and investment in
development. The research aims to indetified, the types of financing from formal
financial institutions and non-formal plantation farmers still used to this day, and formulate policy recommendations to improve farmers' access to capital from the estate
of formal financial institutions.
