The Contribution of Sugarcane Partnership for the Livelihood Structure and the Development of Rural Areas in Lampung Province of Indonesia

Sugarcane is a mainstay commodity crop as raw materials for sugar. Therefore, increasing domestic production through partnerships is an effort to suppress the high value of imports. The purposes of this study are to identify the farmer’s household land use, to analyze the income structure and livelihood strategies, and then to conduct an economic dependency analysis on the sugarcane industry in relation to rural area development. The research method used a survey approach of 131 households and interviews with the head of village and the heads of farmer groups. For data analysis, descriptive statistics and analysis of farm income were used. The results show that farmers use land for sugarcane partnership with a choice of Kerjasama Operasional (KSO) or operational cooperation, the Independence (Mandiri), and Hutan Tanaman Industri (HTI) or industrial forest plantation partnership. The sources of livelihood structure of farmers are from non-sugarcane agriculture, sugarcane farming, Non-Timber Forest Products (HHNK), and non-farm. Engaging in sugarcane partnership is a new livelihood strategy for the rural communities surrounding the plantations with benefits that are affected by the area of owned land. While farmers who do not own land, they earn a living by becoming plantation laborers. Farmer involvement in sugarcane partnership contributes to the household income, the existence of uneven welfare, and the emergence of household economic dependence on sugarcane plantations. The sugarcane partnership is a source of income and an engine of rural economic growth; however, the realization of sustainable rural development has not yet emerged.