Intellectual capital to support goat farming profitability in a rural area of Banjarnegara Regency, Indonesia

Authors

Mochamad Sugiarto, Faculty of Animal Science, Jenderal Soedirman University, Central Java, IndonesiaFollow
Yusmi Nur Wakhidati, Faculty of Animal and Agricultural Science, Diponegoro University, Central Java, Indonesia;
Siwi Gayatri, College of Public Affairs and Development, University of the Philippines Los Baños, Laguna, Philippines
John Enorio M. Perez, College of Public Affairs and Development, University of the Philippines Los Baños, Laguna, Philippines

Abstract

Goat farming in Banjarnegara Regency, Indonesia has become a driver of the rural economy.　 Banjarnegara Regency, Indonesia has become a driver of the rural economy. Banjarnegara is a mountainous area which is divided into three agroecological zones, namely highland, middle land, and lowland. The research was conducted to　(1) identify the levels of goat farmers’　intellectual capital and goat farming profitability; and (2) analyze the relationship between goat farmers’ intellectual capital and goat farming profitability. A multistage sampling method was conducted to collect data from 180 goat farmers. The research on goat farmers’ intellectual capital was conducted using interviews and observations. The dependent variable was goat farming profitability, while the independent variables were goat farmers’ intellectual capital elements, such as human capital, relational capital, and structural capital. Spearman Rank Correlation Test was used to analyze the relationship between the goat farmers’ intellectual capital and the goat farming profitability. The goat farmers in Banjarnegara Regency are considered to have moderate intellectual capital. The descriptive statistical analysis showed that the goat farmers had an average of 0.47 Animal Unit (AU) and generated revenue of IDR 2,225,003.52 (USD 155.07) annually. The goat farmers’ intellectual capital had a significant influence on increasing profitability. Human capital and structural capital should be strongly considered to improve goat farming profitability. Increasing the quantity of training for goat farmers and developing farmers’ groups must be carried out to increase the intellectual capital of goat farmers.

Recommended Citation

Sugiarto, Mochamad; Wakhidati, Yusmi Nur; Gayatri, Siwi; and Perez, John Enorio M. (2022) "Intellectual capital to support goat farming profitability in a rural area of Banjarnegara Regency, Indonesia," Journal of Public Affairs and Development: Vol. 9: No. 1, Article 5.
Available at: https://www.ukdr.uplb.edu.ph/jpad/vol9/iss1/5