The Factors of Rice Farmers’ Poverty in Indonesia: The Perspective of Land Conversion, Land Ownership Area, and Agriculture Technologi

Rice is very important as Indonesia’s main staple. It contributes a lot to the national expenditure where more than 80% of households of every social class consumed rice. There is a high demand level for rice but there is a limited number of farmers. Of 70% of households in rural that work in the agricultural sector, only 50% grow rice, and most of them are poor farmers. Almost 52% of Indonesia’s rice is produced at Java Isle. However, production growth is only 0,7% given the rapidly increasing number of people and land conversion over the past 7 years. Most Indonesian farmers are classified as small farmers has average land ownership of only less than 0.5 hectares, making them can’t innovate and only can fulfil their basic needs without saving for investment. This is made worse by around 35% of farmers don’t own their land. Technology usage also become an issue where 85% of farmers don’t use internet and 45% are not used in using mechanical technology. The purpose of this research is to find the effect of paddy land conversion, land ownership area, and agriculture technology on farmer’s poverty in Indonesia. By using multiple regression method on 6 independent variables data from all Indonesia provinces, we found that the most significant variable to reduce farmer’s poverty is land ownership area. The statistical result is supported and cross-checked by data and related policies from literature review, and interview with some stakeholders from Ministry of Agriculture, local government, paddy farmer representative, and agriculture instructor.


INTRODUCTION
The importance of rice as Indonesia's main diet can be seen both from the production and consumption sides.From the production side, Shahbandeh (2022) shows that Indonesia is the third largest rice producer country in the world with 35,3 million metric ton.The top two producers are China and India with 148,3 million, 122,27 million metric ton respectively.Although Indonesia is the third-largest country in terms of global rice production, the country still should import from other countries almost every year.One of the reasons is because Indonesia has massive population with large per-capita rice consumption.The OECD-FAO forecast the human consumption of rice in Indonesia in 2022 to be around 123.5 kilograms per capita.(Statista, 2022) Overall, from 70% of households in rural that work in the agricultural sector, only 50% grow rice and most of them are poor farmers.Mandang et.al (2020) stated that agriculture in Indonesia is still carried out by millions of farmers with low education level, low land ownership, less capital, and low productivity.Due to this condition, many farmers sell their land to be developed into non-agriculture land use such as residential area, industry, and other facilities.Ginsburg et al. (1991) stated that the major cities in the monsoon nations were mostly situated in regions where wet rice was produced.These cities were created through regional suburbanization processes in East Asia and Southeast Asia.These regions typically had high population densities that were comparable in density to cities in preindustrial Europe because wet rice farming requires a sizable number of laborers.This old statement was supported by Daris, et al (2017) when he said that almost 52% of Indonesia's rice production is produced on the Java-isle.
However, production growth is only 0,7% given the rapid increasing number of people in this island.One of the causes is the increasing land conversion over the past 7 years.
During 2016-2018 there was a significant decrease of paddy field area in Indonesia.
The details of the data can be seen on the figure below.This phenomenon will have high potential to reduce existing agricultural land.
According to Sumaryanto et al. (1995) the negative effects due to land conversion are mainly on the loss of the opportunity to produce agricultural products such as income, employment, and related business such as rice milling and tractor business.Area and status of land ownership have impact on farmers welfare.Susilowati and Maulana (2012) stated that the main cause of poverty in rural areas is because most of the farmers that classified as small farmers just has average land ownership of less than 0.5 hectares.Rondhi and Adi (2018) mentioned that farming on own land has the highest cost efficiency compared to profit sharing and rent.
Research by Koirala, et al (2014)  The basic formula of multiple regression for this research can be written as below.
This research used secondary data as the main source of analysis.The data is collected from some institutional agencies such as This research used data in province level with exception of Jakarta province since there is no data regarding farmers poverty at the region.Moreover, there is only very small area of paddy field at Jakarta.
As for the primary data, it is used as supporting data for the analysis result.The data is collected from interview with some stakeholders such as staff from Ministry of Agriculture, paddy farmer representative, and agriculture instructor.

DISCUSSION
The Effect of Paddy Production and Land

Conversion on Farmers Poverty
The first analysis result to be discussed is the effect of paddy production and land conversion on farmers poverty.The result of the statistical analysis can be seen on the figures below.Therefore it can be resumed that there is need of bottom-up participation of this regulation, and appropriate incentive system for farmers that are willing their land to be put under the program.

Farmers Poverty
The next analysis result to be discussed is the effect of land ownership area on farmers poverty.The result of statistical analysis can be seen on the figures below.Based on the interview it can be resumed that the cause that made the average area of paddy field ownership in Indonesia so low is mainly due to the cultural system that has been deep rooted for a long time.Many stakeholders saw this issue as a normal situation and not a big problem that has to be solved.

Farmers Poverty
The next analysis result to be discussed is the effect of agriculture technology on farmers poverty.First variable is irrigation which the analysis result can be seen below.The maps showed that in general, the highest paddy land area with irrigation located mainly at Sulawesi, Java, Maluku, and northern part of Sumatera.
Next is about asphalt farm road.The result of statistical analysis can be seen on the figures below.agriculture area is 27% with Bali, West Java, Central Java, Yogyakarta, and East Java have the largest proportion of the road (>50% village).
Farm road is a quite important agriculture infrastructure.It makes distribution process from agriculture land much easier, especially when it's made of asphalt.It's so unfortunate that there are many villages without farm road made of asphalt less than 20%.To visualize the data from regional perspective below are the map of the data.The maps showed that the most villages that have asphalt farm road located mostly at Java and some parts of Sumatera and Sulawesi.
Next is about mechanic technology usage.The result of statistical analysis can be seen on the figures below.The maps showed that in general, most farmers that use mechanic technology are mainly from Bali, West Nusa Tenggara, and some parts of Sumatera and Sulawesi.
There are some key points based on the interview with key stakeholders regarding agriculture technology.Mr. Rokhlani,

Figure 1 .
Figure 1.Paddy Field Area in Indonesia (Million Ha) Source: Indonesia Statistic Central Bureau Harini, et al (2012) stated that the land conversion phenomenon occurs due to the rising need for space for housing and In terms of land ownership, Braun and Mirzabaev (2015) stated that Approximately 85 percent of the world's farms are smaller than 2 hectares that mainly located in Asia, particularly China and India, and Sub-Saharan Africa.Average of agriculture land ownership in Indonesia gradually decreasing.The declining of land area could affect productivity level of farmers.

Figure 2 .
Figure 2. Average Agriculture Land Ownership in 1960-2018 (Ha) Source: Indonesia Statistic Bureau, 2018In term of ownership status there are 30% Indonesia farmers that don't have their own land, and regarding land area there are 77% of farmers with land ownership less than 1 Ha.Moreover, of all agriculture land, paddy

Figure 3 .
Figure 3. Proportion of Average Farm Sizes in Each Country Source: Braun and Mirzabaev, 2015

Figure 6 .
Figure 6.Map of Poor Farmers Percentage (Top) and Average Paddy Production (Bottom) Source: Researcher Analysis, 2022 The maps above showed that in general, most of the poor farmers are located at eastern part especially Papua, Sulawesi, Nusa Tenggara, and Maluku while most of the paddy production are located at western part especially Java, Sumatera, and some parts of Sulawesi.Next analysis is about relationship between paddy land change and farmers poverty.The result of the statistical analysis can be seen on the figures below.

Figure 7 .
Figure 7. Scatter Plot Diagram of Paddy Land Conversion and Poor Farmers Source: Researcher Analysis, 2022 Figure 7 shows that in contrast with researcher hypothesis, there is a positive relationship of paddy land conversion and farmers poverty although week with R linear 0.29.It means although there is additional development of paddy field, it doesn't directly reflect to the improvement of farmers welfare.The decreasing of paddy field occurred mostly at south area of Sumatera, Java, and some regions of Kalimantan, while the increasing are mostly occurred at south area of Sumatera, Nusa Tenggara, Sulawesi, Maluku, and Papua.The result of statistical analysis is different with researcher hypothesis.Therefore, researcher assume that maybe there is positive relation between productivity and paddy land conversion.The result can be seen below.

Figure 8 .
Figure 8. Scatter Plot Diagram of Paddy Land Conversion and Paddy Productivity Source: Researcher Analysis, 2022

Figure 9 .
Figure 9. Map of Poor Farmers Percentage (Top) and Average Paddy Land Change (Bottom) Source: Researcher Analysis, 2022The maps above showed that in general, the change of paddy field is sprawled with the decreasing occurred mostly at south area of Sumatera, Java, and some regions of Kalimantan, and the increasing at south area of Sumatera, Nusa Tenggara, two provinces of Kalimantan, Sulawesi, Maluku, and Papua.To support and understand more the result of statistical analysis, policy review and interview with some stakeholders are

Figure 10 .
Figure 10.Scatter Plot Diagram of Paddy Land Ownership Area (Ha) and Poor Farmers (%) Source: Researcher Analysis, 2022 Figure 10 shows that similar with researcher hypothesis, there is negative relationship of land ownership and farmers poverty (although weak with R linear = 0,19).It means larger the land ownership area, smaller the poverty level.In order to visualize the data from regional perspective below are map of poor farmers percentage and average of paddy field area ownership in Indonesia.

Figure 11 .
Figure 11.Map of Poor Farmers Percentage (Top) and Paddy Land Ownership Area (Bottom) Source: Researcher Analysis, 2022 The maps showed that in general, most of the poor farmers are located at eastern part especially Papua, Sulawesi, Nusa Tenggara, and Maluku while the highest paddy land area ownership located mainly

Figure 12 .
Figure 12.Percentage Paddy Field with Irrigation (%) and Poor Farmers (%) Source: Researcher Analysis, 2022 Figure 12 shows that in contrast with researcher hypothesis, there is a positive relationship of irrigation and farmers poverty (although week with R linear = 0,12).

Figure 14 .
Figure 14.Map of Poor Farmers Percentage (Top) and Paddy Field With Irrigation (Bottom) Source: Researcher Analysis, 2022

Figure 15 .
Figure 15.Percentage Village with Asphalt Farm Road (%) and Poor Farmers (%) Source: Researcher Analysis, 2022 Figure 15 shows that similar with researcher hypothesis, there is a negative relationship of asphalt road and farmers poverty (although week with R linear = 0,35).It means asphalt road to agriculture area has positive effect to reduce farmers poverty.National percentage of village that have asphalt road that connect main road with

Figure 13 .
Figure 13.Percentage Paddy Field with Irrigation (%) and Paddy Productivity Ton/Ha) Source: Researcher Analysis, 2022 Figure 13 shows there is a large positive effect of irrigation to productivity with R linear = 0,591.It means although irrigation doesn't directly contribute to reduce farmers poverty, it directly boosts productivity.Then, based on previous analysis, because productivity contributes to reduce poverty, it can be assumed that irrigation indirectly effect to poverty reduction.The percentage national average of paddy field with irrigation is 51,28% with some regions especially at Java, Sulawesi and Maluku have the largest proportion of paddy field with irrigation.Irrigation is one of the most important technologies for rice field.It's so unfortunate that there are many regions without irrigation less than 20% of paddy field.To visualize the data from regional perspective below are map of poor farmers percentage and percentage of paddy field with irrigation in Indonesia.

Figure 16 .
Figure 16.Map of Poor Farmers Percentage (Top) and Village with Asphalt Farm Road (Bottom) Source: Researcher Analysis, 2022

Figure 17 .Figure
Figure 17.Map of Poor Farmers Percentage (Top) and Village with Asphalt Farm Road (Bottom) Source: Researcher Analysis, 2022

Figure 18 .
Figure 18.Map of Poor Farmers Percentage (Top) and Farmers that use Mechanic Technology (Bottom) Source: Researcher Analysis, 2022

Table 1 . Research Variables Conceptual Variable Operational Variable Explanation Source
Myers and Well (2003)research is a way to test objective theories by looking at the relationship between different variables.These variables can be measured, usually using instruments, allowing numbered data to be statistically analysed.The analysis method that is used in this research is multiple regression method.The method is used to calculate how much the effect of each variable that related to land conversion, land ownership, and technology on farmer's poverty.Multiple regression is usually used to look for correlation from more than one independent variables to the dependent variable.Myers and Well (2003)there hasn't been research with national macro level at Indonesia with this topic.With the result from national perspective, some central government institutions such as Ministry of Agriculture, Ministry of Trade, and Indonesia Logistics Bureau can understand the situation in each region and can give different treatments in policy making for each region.Below is the list of variables that are used in this research.