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- The Economic Impact of the Toili Transmigration Project in Indonesia
The Economic Impact of the Toili Transmigration Project in Indonesia
Abstract:
This study attempted to determine the micro and the macro impact of the transmigration project in the Toili transmigration center in the province of Sulawesi Tengah, Indonesia. The study used primary and secondary data. The methods of analysis consisted of descriptive and econometric analysis.
The microeconomic study was based on primary survey data, which were analyzed to evaluate rice farming behavior of transmigrants, income-expenditure level, and personal perception of the transmigrants of the program implementation.
The macroeconomic study evaluated the impact of transmigration on the regional agricultural production, determined income and employment structure in the region, and identified agricultural sources of labor and infrastructural development in the site.
The impact of production input was highly significant in rice farming behavior of the transmigrants. The significant factors included the impact of the second stage development program and transmigration status. As aspired by the farmers, better trained and facilitated extension workers will speed up such developmental progress.
Agriculture remains the most potential source of income and employment in the region, followed by daily jobs. The average annual income of transmigrants was estimated at USjumi ,000.00 per household, 44 percent of which was contributed by agriculture. In the agriculture sector, family workers dominated the total labor needed in farming.
From the interregional perspective, it was found out that transmigration significantly improved regional rice production in the area of destination without any significant effect on regional rice production in the area of origin.
The findings suggest that the second stage development should be continuously prioritized through infrastructural development in established transmigration centers, supported by better mechanism in the provision of inputs and more effective role of extension workers. Spontaneous transmigration, which was shown to have a better performance than general transmigration, should have been the only concern in the transmigration program toward regional food self-sufficiency.