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php/ijaserd International Journal of Agricultural Social

doi: http://dx.doi.org/10.37149/ijaserd.v2i2.24263 Economics and Rural Development (Ijaserd)
ISSN: 2774-9126 (Online) 2022:2(2):62-68

THE ROLE OF FARMER PARTNERSHIP IN PATCHILE BUSINESS

IN KARYA BHAKTI VILLAGE KULISUSU BARAT DISTRICT NORTH BUTON REGENCY

Hasyanky M Saragi1*), La Ode Alwi1), Samsul Alam Fyka1)

1
Department of Agribusiness Faculty of Agriculture, Universitas Halu Oleo Kendari 93232

*Corresponding author: hskysaragi@gmail.com

To cite this article:

Saragi, H., Alwi, L., & Fyka, S. (2022). The Role of Farmer Partnership in Patchile Business in Karya Bhakti
Village Kulisusu Barat District North Buton Regency. International Journal of Agricultural Social Economics and
Rural Development (Ijaserd), 2(2), 62 - 68. doi:http://dx.doi.org/10.37149/ijaserd.v2i2.24263

Received: March 09, 2022; Accepted: July 18, 2022; Published: August 11, 2022

ABSTRACT

The problem faced by farmer patchouli in the countryside regarding the lack of capital for
farming. Farmer patchouli resolved the problem by choosing a partner with the owner of capital
because the process is no capital loan complicated and no use bound contract. Study this aim for
knowing pattern partnership and the attachment among capital owner and farmer partner patchouli
and knowing income farmer partner and income owner of capital in village Karya Bhakti districts West
Kulisusu District North Buton. Karya Bhakti village is the wrong centre for farming patchouli. They
were chosen in August-September 2021 as the location for research. The study used 27 respondents
as the sample. The research variables in this study are the respondents' age, education, farm
experience and family dependents—the partnership pattern between the owner of the capital and the
farmer. Attachment of capital owner to patchouli farmer is trust, networks and norms. Technical data
retrieval is done by observation, interview and summarizes the answer. Analysis data used
descriptive analysis and qualitative descriptive analysis. Partnership systems applied by capital
owners with farmer partners in village Karya Bhakti tend to follow a pattern of cooperation in
operational agribusiness (KOA). Owners of capital and farmers have rights and obligations. The
obligation and right of the capital owner are to provide capital loans and receive farmer crops. The
farmer's obligations are to receive capital loans and provide land and crops to the owner capital. The
entanglement is influenced by the existence of social capital, which consists of trust, network, and
norms so that the partnership can continue. Partnership by owner capital and farmer is based on
mutual trust.

Keywords: network; norm; partnership; patchouli oil; trust

PENDAHULUAN

The agricultural sector is an important sector that is dominant in people's income because
most of the Indonesian population works as farmers. The influence of the agricultural sector in the
economy consists of various sub-sectors, namely food crops, plantation crops, livestock, forestry and
fisheries (Aziz et al., 2015) . Plantation is an agricultural sub-sector that has great potential for
income. One of the commodities in the plantation sub-sector is patchouli (Pogostemon cablin Benth) .
Patchouli plant known as Patchouli Oil is an essential oil-producing plant that has high economic
value. Indonesia is able to export 14 types of essential oils out of a total of 70 types needed by the
world, especially patchouli oil. Thus, patchouli cultivation has wide open prospects (Mangun et al.,
2008) .
North Buton Regency has an area that cultivates patchouli plants, but in doing farming,
patchouli farmers lack capital and limited savings, causing farmers to experience difficulties in the
initial costs of cultivation. Most of the agricultural businesses carried out by farmers still rely on their
own capital which comes from farmers' assets and farmers' income. In fact, farmers' income must be
used for various family needs. One of the efforts to overcome obstacles in farming is done through a
partnership system with capital owners compared to accessing formal financial assistance such as
banking. The results of Susanto et al. (2022) , that without sufficient capital, farmers will not be able to
increase the productivity of their crops. To overcome the problem of lack of capital, farmers borrow
money from both formal and informal financial institutions. As the results of research Jumarniati et al.
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(2020) that coconut farmers in Indragiri Hilir have access to informal finance, namely Chinese traders
who buy producer products in the form of copra, making it easier for farmers to develop their
businesses. Therefore, this study focuses on partnerships between farmers and capital owners rather
than accessing formal assistance. This is based on the idea that informal assistance is more in
demand by farmers in rural areas. Kusmana and Garis Penelitian Research (2019) , that the
existence of trust in cooperation can increase the empowerment carried out so that the community
participates more. In this study, the attachment of capital owners to farmers through partnerships is
based on trust, networks and norms.
The benefits of partnership should be obtained by farmers who lack capital and limited
savings can realize one of the goals of the partnership, namely increasing income (Susanti et al.
2014) . Research conducted by Halik et al. (2019) that partnerships have a significant positive effect
on revenue and if a business establishes a partnership with another business, it will increase
business income. Related to the above problems related to the company's partnership with farmers, it
is carried out to obtain mutual benefits, but the partnered farmers feel disadvantaged because they
are tied to the partnering company. Therefore, the role of partnerships that are carried out on the
basis of their social capital has not been found. Thus, this research needs to be carried out which
aims to determine the pattern of partnership and attachment of capital owners with patchouli farmers
in Karya Bhakti Village, West Kulisusu District, North Buton Regency.

MATERIALS AND METHODS

Karya Bhakti Village, West Kulisusu District, North Buton Regency is the research location.
The population in this study amounted to 26 patchouli farmers who partnered with a capital owner and
a capital owner so that the sample amounted to 27 people. Sampling using the census method
proposed by Rianse and Abdi (2019) that all populations are sampled because the population is less
than 50 people. The type of data used is qualitative data. The research variables are the
characteristics of the respondents, the pattern of partnership and the attachment of patchouli farmers
and owners of capital. The data analysis used is descriptive qualitative data analysis. The stages of
activities in analyzing data are conducting interviews and collecting literature so that the information
obtained is analyzed critically to gain an understanding of the variables studied.

RESULTS AND DISCUSSION

Characteristics of Respondents
Characteristics of respondents in this study include age, education level, patchouli farming
experience and number of family dependents.

Table 1. Characteristics of respondents in Karya Bhakti . Village

No Characteristics Number of Farmers Percentage
1 Age (Years)
15-54 19 73.08
>54 7 26.92
2 Education
Not Completed In Primary School 4 14.81
Primary School 15 55.57
Junior High School 4 14.81
Senior High School 3 11.52
3 Number of Family Dependents (Persons)
1-2 9 34.62
3-4 12 46.15
5 5 19.23
4 Farming Experience (Years) 23 88.46
1-3
>3 3 11.54

Based on Table 1 shows that the age of respondents who are in the productive age so that it
can be concluded that some of the respondents' physical abilities are still in a productive condition
and some of the respondents' physical conditions are not productive which will result in a decrease in
their ability to run patchouli farming. This is in line with Aprilyanti's opinion (2017 ) that generally

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someone who is still of a productive age will affect the same productivity ability, think more advanced,
dynamic, strong, and passionate compared to someone who is older where a person's abilities and at
a certain age level will started to decline.
The level of education in this study is the level of education that has been followed by the
respondent. The education level of the respondents has varied education. Farmers' education in this
study consisted of not graduating from elementary school, graduating from elementary school,
graduating from junior high school and graduating from high school. The education level of
respondent farmers is still classified as basic education level but does not become an obstacle in
carrying out farming activities. Patchouli farming does not completely require formal education skills
but needs to be accompanied by non-formal education in terms of applying skills and knowledge that
farmers do not know that can hinder patchouli farming activities. Therefore, non-formal education is
needed such as training and guidance as well as local agricultural extension workers. This is in line
with the opinion of Anwas (2013 ) which states that formal education is a purposeful and systematic
transmission of knowledge, skills and attitudes outside of formal schooling technology with a
structured arrangement of time, place, diverse but directed sources.
The number of dependents of the respondent's family in Karya Bhakti Village is very diverse.
The number of family dependents between 3-4 people is the largest number of family dependents. It
can be concluded that the number of dependents of the respondent's family ranges from 1-5 people
so that it can affect their farming activities. According to Suratiyah (2009 ) , labor is an important factor
in family farming, especially farmer workers and their family members. If it can still be completed by
the family's own workforce, there is no need to hire outside workers. This shows that the greater the
number of dependents in the family, the more likely it is to use labor in the family. On the other hand,
the larger the number of family dependents, the higher the costs sacrificed, so that the income
obtained from farming will be smaller.
Most of the respondents' experience in patchouli farming in Karya Bhakti Village consists of 1-
3 years. Patchouli farming experience in Karya Bhakti Village can be categorized as still
inexperienced because patchouli farming is a new farming activity carried out by the community.
Farming experience is very necessary to improve the quality of work to produce maximum production.
With the experience of farming, farmers will be able to overcome problems that tend to occur every
time they do farming production. This is in line with the opinion of Syam et al. (2017 ) farming
experience will produce a positive relationship where farmers who have business experience will be
dynamic in overcoming their farming problems.

Capital Owner Partnership Pattern with Farmers

Desa Karya Bhakti has a capital owner who helps patchouli farmers in overcoming the lack of
capital. The owner of the capital provides capital loans to farmers so that they are able to do their own
farming. Partnerships between capital owners and patchouli farmers in Karya Bhakti Village can be
implemented because farmers lack capital or urgent needs will go to capital owners to borrow capital
and capital owners will provide capital according to farmers' needs so that a partnership occurs.
Partner farmers will repay the loan when the harvest season arrives. The capital provided by the
owner of the capital has no interest and the loan process is fast without intermediaries. The
implementation of the partnership between patchouli in Karya Bhakti Village and Mr. LM as the owner
of the capital is based on the principle of mutual trust and mutual benefit. Both parties work to
complement each other. To clarify the mechanism of the partnership pattern between patchouli
farmers and capital owners, it can be seen in Figure 1.
Rights and Obligations of Partner Farmers
Partner Farmers Failed Harvest
Land and Delivering Results
Labor on Owner
Capital
Partner Capital Market
Attachment
Farmers owners
Receiving Capital Results
Farmer's Harvest
The Action of the Owner of The Capital if
Partner Farmers Fail to Harvest
Rights and Obligations of Capital Owners

Figure 1. Farmer partnership pattern in Karya Bhakti Village

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The agreement during the harvest season for partner farmers will provide the patchouli
harvest in the form of dried patchouli to the owner of the capital to be refined. If the farmer's crop fails,
the farmer informs the owner of the capital that the crop cannot be harvested so that the owner of the
capital knows that the farmer cannot return the loan capital. Any farmer who fails to harvest is not
required to repay the loan and can be returned for the following season's harvest. The owner of the
capital will continue to provide capital loans to patchouli farmers who fail to harvest because the
owners of the capital enter into partnerships for mutual benefit in the hope of bringing prosperity to the
farmers in Karya Bhakti Village.
Rights and Obligations of Partner Farmers and owners of capital. Mr. LM's obligation as the
owner of capital is everything that Mr. LM has to carry out. These obligations are providing partner
farmer capital, buying partner farmers' crops and marketing partner farmers' crops.
The partnership carried out by the owner of capital with patchouli farmers begins with patchouli
farmers who lack capital in their farming. Both parties jointly discussed the mechanism for
implementing the partnership. In implementing the partnership, both parties have rights and
obligations that must be obeyed so as to achieve common goals and mutually beneficial. The rights
and obligations of the owners of capital do not burden the other party because the partnership is
implemented to achieve a common goal. The obligations of the owners of capital in running the
partnership are providing capital for partner farmers, buying partner farmers' crops and marketing
patchouli farmers' crops. Patchouli farmers who have problems faced when doing farming can notify
the owners of capital so that the owners of capital can help patchouli farmers. This is in line with the
research of Dahayu and Budhisulistyawati (2020) states that the implementation of the agreement is
an act of fulfilling the rights and obligations that have been agreed upon by the parties, so that the
objectives that have been made are achieved.
Mr. LM's rights as skipper are everything that should be obtained from partnerships with
farmers in Karya Bhakti Village, these rights include receiving all of the partner farmers' crops,
determining the price received by partner farmers, and receiving back capital loans from farmers.
In the process of doing the partnership, the owner of the capital also has the rights obtained
from the farmers in line with the agreement that was made at the beginning of the implementation of
the partnership with patchouli farmers. The rights of the owner of the capital are to receive all the
harvests of the mita farmers, determine the price received by the partner farmers and receive back
the capital loan from the farmers during the harvest season. If the farmer is unable to repay the loan
during the harvest season, he must immediately notify the owner of the capital so that the owner of
the capital knows and the farmer can repay the loan at the time of the next harvest season. The
owners of capital do this to retain their partners so that the partnership can be sustainable. This is in
accordance with the research results of Fitri et al. (2018) argues that if farmers feel benefited and can
meet their daily needs with a partnership, the partnership will continue.
The partner farmer's obligation is everything that the partner farmer must do in a partnership
with Mr. LM as the owner of capital, the partner farmer's obligation is to provide land, provide labor ,
sell crops to Mr. LM, pay all farm capital loans to the capital owner .
A partnership that is carried out can continue if both parties meet the needs of both parties.
Patchouli farmers who do partnerships have obligations that must be fulfilled. The farmers' obligations
are to provide land, provide labor, sell crops to owners of capital and pay all farm capital loans to
owners of capital. If farmers have problems in farming, they can notify the owners of capital so that
these problems can be overcome, such as repaying loans during crop failure so that it does not harm
both parties. Based on Ernawati's research results (2018) argues that in a partnership agreement
each party has rights and obligations that must be fulfilled even though the agreement letter is not
stated in detail, but the implementation of rights and obligations must be fulfilled.
The rights of partner farmers are everything that should be obtained from the partnership
carried out with Mr. LM as the owner of capital. These rights include the following: Receiving farm
capital loans, Farmers managing their respective lands, Obtaining marketing guarantees, Obtaining
farming receipts from owners of capital from the sale of patchouli oil, and Receiving notes on the
number of harvests and harvest prices.
Patchouli farmers have rights that are fulfilled by the owners of capital starting at the time the
partnership is implemented. The rights of patchouli farmers are to receive farming capital loans,
farmers manage their respective lands, get marketing guarantees, obtain farming receipts from
owners of capital from patchouli oil sellers and receive notes on the amount of harvest and the price
of patchouli oil. The owner of the capital provides the opportunity for patchouli farmers to tell the
obstacles they are facing so that they can be solved together. According to Elizabeth's research
results (2021) , that in making an agreement, both written and verbal, they agree to procure the sale
and purchase of products from partner farmers. If the quality of the product is low, industry players

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allow and provide opportunities for farmers to sell their harvests to the market in an effort to reduce
the burden on farmers if the quality of the harvest is low.
Based on the rights and obligations of partner farmers and Mr. LM and the partnership
mechanism that is being carried out, it is concluded that the pattern of cooperation that exists is the
pattern of Agribusiness Operational Cooperation (KOA). Partner farmers will carry out their farming
with the help of patchouli farmers' capital from the owners of capital and the owners of capital will
guarantee the marketing of patchouli from partner farmers. This is in line with Sumardjo's opinion
(2004 ) that the partnership with the Agribusiness Operational Cooperation (KOA) pattern states that
partner farmers have a role in providing labor and land for their own farming. Meanwhile, the owner of
capital is responsible for providing farming capital and plays a role in ensuring the marketing of
farmers' crops and will receive patchouli harvests from partner farmers . The first party deals directly
with the second party without any intermediary.

Patchouli Farmers' Engagement with Capital Owners

Social capital in rural areas is one of the tools that can be used by rural communities to
increase their role in various activities, especially in the agricultural sector. The bond that exists
between the capital owner and patchouli farmers in Karya Bhakti Village is an attachment based on
the existing social capital consisting of trust, norms and networks. According to Fukuyama (2002 ) ,
an important element in social capital is trust which can be the glue that lasts a relationship in a
community group. To clarify the relationship between patchouli farmers and capital owners, see Table
2 below.

table 2. Trust and social network of patchouli farmers and capital owners
Capital Owner Social Network Patchouli Farmer Social
No Patchouli Farmers Trust
Trust Owners of capital Network
1 Owners of Patchouli farmers Providing price Interact regularly with
capital provide believe that the owner information to the owners of capital so
loan capital to will provide loan patchouli farmers that the relationship that
farmers assistance when exists can be easier to
farmers need capital for obtain information from
patchouli farming the owners of capital.
2 Patchouli Patchouli farmers give Interacting can Always be honest with
farmers will their crops to the owners create a sense of the owner of the capital
receive the of capital by believing mutual trust so that by giving all the
patchouli price that the price obtained is the partnership that patchouli harvest so that
according to in accordance with the is established the owner of the capital
the prevailing price circulating in the remains harmonious can provide more
price without market. and lasts a long time. assistance to the
any discount farmers.

Trust
A trust is needed in a group or community because with the trust or trust that is established,
the people inside and outside the group can work more effectively (Utami, 2002 ) . The owner of the
capital believes in providing loan assistance and believes that the patchouli farmers will sell the
patchouli harvest to the owner of the capital. Patchouli farmers will sell their crops to the owners of
capital because patchouli farmers have felt that they have been helped by the owners of capital. The
partnership between owners of capital and farmers is based on no written contract but verbally so that
it can create mutually beneficial relationships and obtain many benefits. This is in line with
Puspitasari's opinion (2012 ) that various collective actions based on high mutual trust will increase
community participation in various forms and dimensions, especially in the context of building mutual
progress.

Social Network
Social networks in building relationships are very important. This means that having a high
network will have a lot of good relations in the community so that economic empowerment will
increase. A social network is a collection of individuals or groups bound by the same interests and
goals. A strong social network is needed in maintaining cohesiveness so that the relationships that
are established remain harmonious and can last a long time. This is in line with Arsyad's (2015 )
opinion that the purpose of forming and utilizing social networks is to overcome problems faced by the
community, such as limited job opportunities, less diverse structure of economic resources, limited

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education, skills, equipment and capital. This limitation by forming and utilizing social networks is the
most effective and main adaptation strategy and the results of Mona's research (2020), says that high
social networks will increase interaction between communities and if social networks are low,
interactions in society will also be low.

Social Norms
A relationship that exists is never separated from the norms that govern it. Norms can be
sourced from religion, moral guidelines or secular standards. Norms are developed and implemented
to support cooperation. According to Putnam (1993 ) , existing social norms tend to be based on and
influenced by religious norms, where religious norms have an important role in social life so that there
is honesty, obedience, and mutual help. To maintain cooperative relations, unwritten norms that bind
the community in Karya Bhakti Village are needed, namely respecting elders, respecting different
opinions and not offending others.

CONCLUSION

Pattern that exists between the owners of capital and patchouli farmers is a pattern of
Agribusiness Operational Cooperation (KOA) where partner farmers play a role in providing labor and
land for their own farming and selling crops to owners of capital. Meanwhile, the owner of the capital
is responsible for providing farm capital and plays a role in ensuring the marketing of farmers' crops.
The bond that exists between the owners of capital and patchouli farmers is an attachment based on
mutual trust, a network that connects patchouli farmers and capital owners as well as norms that
serve as guidelines in carrying out partnerships so that the expected cooperation is achieved. Social
capital owned by patchouli farmers and capital owners will create a harmonious and sustainable
partnership. Therefore, the owners of capital and patchouli farmers will always maintain the trust they
have by carrying out the agreed rights and obligations.

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