Determinant Factors of People’s Business Credit (KUR) Repayment in The Livestock Sector

Aldi Syahfrizal; Mujtahidah Anggriani Ummul Muzayyanah; Tian Jihadhan Wankar

doi:10.21059/buletinpeternak.v49i3.104116

Determinant Factors of People’s Business Credit (KUR) Repayment in The Livestock Sector

https://doi.org/10.21059/buletinpeternak.v49i3.104116

Aldi Syahfrizal⁽¹⁾, Mujtahidah Anggriani Ummul Muzayyanah^(2*), Tian Jihadhan Wankar⁽³⁾

(1) Master Program of Animal Science, Faculty of Animal Science, Universitas Gadjah Mada, Yogyakarta, 55281
(2) Faculty of Animal Science, Universitas Gadjah Mada, Yogyakarta, 55281
(3) Faculty of Animal Science, Universitas Gadjah Mada, Yogyakarta, 55281
(*) Corresponding Author

Abstract

The People's Business Credit (KUR) program plays a crucial role in supporting Indonesia's livestock sector, which remains a primary source of livelihood for many rural households. This study aims to identify the characteristics of livestock farmers receiving KUR and the factors influencing loan repayment. Data were collected through a survey of 505 livestock farmers in Purbalingga Regency who had received KUR financing. A binary logistic regression model was used to analyze the determinants of loan repayment. The results show that borrower age, loan amount, loan term, and credit risk score significantly affect loan repayment performance. In contrast, gender, number of dependents, education level, business experience, income, and repayment capacity do not have a significant effect. The findings suggest that borrower characteristics and loan terms are crucial in determining repayment outcomes. Policymakers are advised to align KUR loan terms with livestock production cycles and provide financial literacy support to improve repayment rates and ensure the long-term sustainability of livestock-based KUR programs.

Keywords

Livestock, People’s Business Credit, Repayment

Full Text:

6. Mujtahidah 206-211

References

AL-Sharafat, A., Qtaishat, T., & Majdalawi, M. I. (2013). Loan Repayment Performance of Public Agricultural Credit Agencies: Evidence from Jordan. Journal of Agricultural Science, 5(6), 221–229. https://doi.org/10.5539/jas.v5n6p221

Alamsyah, R. T. P., Wulandari, E., & Karyani, T. (2018). Comparative Study of Various Agricultural Financial Providers In Bandung District. Jurnal Sosial Ekonomi Dan Kebijakan Pertanian, 7(1), 30–36. http://dx.doi.org/10.21107/agriekonomika.v7i1.2513%0AABSTRACT

Das, T., Guha, P., & Das, D. (2021). Do the Heterogeneous Determinants of Repayment Affect Differently across Borrowers of Diverse Credit Sources in Rural Assam? A Double Hurdle Approach. Journal of Development Policy and Practice, 6(2), 188–209. https://doi.org/10.1177/24551333211031667

Grant, A., & Deer, L. (2020). Consumer marketplace lending in Australia: Credit scores and loan funding success. Australian Journal of Management, 45(4), 607–623. https://doi.org/10.1177/0312896219883678

Gujarati, D. N. (2003). Basic Econometrics. (4th ed.). Mc Graw-hill, Inc.

Haryanto, T., Wardana, W. W., Jamil, I. R., Brintanti, A. R. D., & Ibrahim, K. H. (2023). Impact of credit access on farm performance: Does source of credit matter? Heliyon, 9(9), e19720. https://doi.org/10.1016/j.heliyon.2023.e19720

IMF. (2024). Financing Barriers and Performance of Micro, Small, and Medium Enterprises (MSMES). Indonesia: Selected Issues, 2024(271), 52.

Kassegn, A., & Endris, E. (2022). Factors affecting loan repayment rate among smallholder farmers got loans from the Amhara Credit and Saving Institution: In the case of Habru District, Amhara Regional State, Ethiopia. International Area Studies Review, 25(1), 73–96. https://doi.org/10.1177/22338659211040993

Khanal, A. R., & Omobitan, O. (2020). Rural Finance, Capital Constrained Small Farms, and Financial Performance: Findings from a Primary Survey. Journal of Agricultural and Applied Economics, 52(2), 288–307. https://doi.org/10.1017/aae.2019.45

Ma, W., Qiu, H., & Rahut, D. B. (2023). Rural development in the digital age: Does information and communication technology adoption contribute to credit access and income growth in rural China? Review of Development Economics, 27(3), 1421–1444. https://doi.org/10.1111/rode.12943

Makandolu, S. M., & Sogen, J. G. (2015). Analisis Faktor-faktor yang mempengaruhi tingkat pengembalian kredit mikro utama (KMU) pada sektor pertanian oleh debitur bank NTT kantor cabang utama kupang provinsi Nusa Tenggara Timur. Jurnal Nukleus Peternakan, 2(1), 33–41.

Moritán, M. G. (2020). Financial inclusion for MSMEs and women’s economic empowerment. Journal of the International Council for Small Business, 1(1), 7–9. https://doi.org/10.1080/26437015.2020.1714348

Nirmala, R. A., Atmoko, B. A., Andarwati, S., & Panjono, P. (2024). Analysis of Potential Development of Goat Farming at Bantul Regency, in Special Region of Yogyakarta, Indonesia. Buletin Peternakan, 48(1), 1. https://doi.org/10.21059/buletinpeternak.v48i1.86768

Nugroho, E., Purwanti, T. S., Rahman, M. S., Febrianto, N., Winarto, P. S., & Kamil, N. (2024). The Effect of Credit Access on Climate Change Adaptation Strategies Among Dairy Farmers in East Java, Indonesia. Jurnal Ilmu-Ilmu Peternakan, 34(1), 60–66. https://doi.org/10.21776/ub.jiip.2024.034.01.07

Ojiako, I. A., & Ogbukwa, B. C. (2012). Economic analysis of loan repayment capacity of small-holder cooperative farmers in Yewa North Local Government Area of Ogun State, Nigeria. African Journal of Agricultural Reseearch, 7(13), 2051–2062. https://doi.org/10.5897/ajar11.1302

Ojo, T. O., & Baiyegunhi, L. J. S. (2020). Determinants of credit constraints and its impact on the adoption of climate change adaptation strategies among rice farmers in South-West Nigeria. Journal of Economic Structures, 9(1). https://doi.org/10.1186/s40008-020-00204-6

Purwanti, T. S., Nugroho, E., Febrianto, N., & Siswijono, S. B. (2023). Unlocking credit access for farmers (Case study of dairy farmers in East Java, Indonesia). BIO Web of Conferences, 81, 2–7. https://doi.org/10.1051/bioconf/20238100025

Rohmana, L., & Wulandari, P. (2024). The key determinants of digital repayment performance of ultra-micro entrepreneurs in Indonesia microfinance institution. Journal of Entrepreneurship and Public Policy. https://doi.org/10.1108/JEPP-04-2024-0050

Sajna, V., & Dharmaraj, A. (2024). Determinants of Loan Repayment Behaviour: An Exploratory Study among PMEGP Beneficiaries of MSME in Kerala. Indian Journal of Information Sources and Services, 14(3), 6–15. https://doi.org/10.51983/ijiss-2024.14.3.02

Sari, S. P., & Fatahuddin, A. (2020). Determinan Risiko Kredit Pada Platform Pinjaman Berbasis Daring : Tinjauan Pada Usaha Kecil Menengah. Business and Economics Conference in Utilization of Modern Technology, 121–136.

Sugiarto, M., Wakhidati, Y. N., & Aunurrohman, H. (2019). Farmers’ Satisfaction of the Service Quality of Broiler Contract Farming Model in Banyumas Regency. Buletin Peternakan, 43(3), 207–212. https://doi.org/10.21059/buletinpeternak.v43i3.44853

Tambunan, T. T. H. (2011). Development of micro, small and medium enterprises and their constraints: A story from Indonesia. Gadjah Mada International Journal of Business, 13(1), 21–43. https://doi.org/10.22146/gamaijb.5492

Wulandari, N. W. F. (2019). Analisis Faktor-Faktor Yang Mempengaruhi Kolektibilitas Kredit Usaha Rakyat (KUR) Mikro Bri Unit Renon. Jurnal Sains,Akuntansi Dan Manajemen (JSAM), 1(3), 1–49.

DOI: https://doi.org/10.21059/buletinpeternak.v49i3.104116