Rice Farmers’ Perspectives on the People’s Business Credit (KUR) as an Alternative Financing Option for Cultivation in Gorontalo

Abstract

This study aims to analyze the perspectives of rice farmers on the People’s Business Credit (KUR) program as an alternative source of cultivation financing in Gorontalo Province. The KUR program, provided by the government through banking institutions, is expected to enhance farmers’ access to capital, reduce dependence on the ijon (advance selling) system, and promote increased productivity and farmer welfare. This research employs a descriptive qualitative approach, with data collected through in-depth interviews, field observations, and documentation involving several rice farmers in the Bone Bolango and Gorontalo districts. The findings indicate that most farmers hold a positive perception of the KUR program due to its relatively low interest rates and increasingly simplified distribution procedures. However, some farmers remain hesitant to utilize this facility because of limited administrative knowledge, concerns about crop failure risks, and reliance on traditional financing patterns. These findings highlight the importance of the role played by local governments and financial institutions in strengthening financial literacy and providing assistance to farmers so that the KUR program can be optimally utilized to support the sustainability of rice cultivation in Gorontalo.