The Need for ICT Education for Managers or Agri-Businessmen for Increasing Farm Income: Study of Factor Influences on Computer Adoption in East Java Farm Agribusiness

Article excerpt

ABSTRACT

In the present era of globalization ICT plays a vital role to make a produce competitive in global market via all ICT manifestation, such as audio and video, computer and internet technologies. ICT subject has to be taught in tertiary education including students at agriculture colleges. When graduated students become farmers, they may become successful managers. A research has been done in East Java. The sample comprised 178 managers/agribusinessman. The aim of the research was to investigate the factor influences on computer adoption in East Java On-Farm Agribusiness (EJOFA) and the implications on sustainable agricultural development. The research was conducted in EJOFA with the target population being farm agribusiness owner managers. The data was collected using multi stage sampling method and a combination of mail and semi structured interviews. The qualitative data on sample characteristics and variable instrumentation were analyzed using cross tabulation.

Three main hypotheses have been tested, namely, H1: business area influence computer adoption, H2: a large company sized influence computer adoption, and H3: gross sales influence computer adoption.

To test the hypotheses, logistic regression had been employed. The results of analysis showed that those three hypotheses are accepted. These can be meant as follows: The research produced some research findings; (i). Business area have influenced computer adoption; (ii) The probability on adopting computer for agribusiness has strongest influenced by manager's ages 41+, education (TAFE and over), and gross sales, (III) The computer mostly has been used for administration purposes.

These findings indicate that providing computers and other ICTs for managers or agribusinessman is important. Considering that most progressive managers or business-man are young graduates from tertiary education, therefore, it is suggested that the additional subject on ICTs Education is a must. The final main objective is, of course, increasing farm income.

Keywords: agribusiness, ICT-computer, multi-stages sampling, logistic regression, East Java

BACKGROUND

Agribusiness sector has had a significant role in national development directly such as to contribute to the Gross Domestic Product (GDP), employment generation, people's income, poverty alleviation, foreign exchange earnings through export, and national food security, and indirectly i.e. to create conducive environment in implementing national development as well as inter-sector synergy relationship.

Within the context of agricultural sector, during the 1970s and 1980s, this sector showed a positive trend. The growth of Agricultural GDP averagely 3.2% per year, and rice self-sufficiency has been successfully achieved in 1984. This was a remarkable success, since previously, Indonesia was one of the largest importer countries in the world. Presently in 2006 the growth still remains around 3.5% per year.

In east Java in which this research was conducted, is one of agricultural base areas. East Java's agricultural business growth has become concern since the formation of economic independency of the provincial government. Accordingly, there are some strong agro industries in East Java such as: tobacco, sugar, fisheries, fruit and agro tourism. For example, East Java is one of the provinces that supply the largest quantity of fruits to the Indonesian fruit markets such as mango, orange, papaya, banana and pineapple. In 1999, this province produced 1,402,322 tons of fruit from 10,523,336 tons or 13.326% of national stock (MOA, 2001). Those fruits are mainly planted in rural areas in all of the districts and are managed traditionally by farmers.

In relation to the regional economy (Otonomi Daerah), it is important for East Java to improve regional economic growth on agricultural based business. It can be done through the improvement of the agricultural industry through out adopting very current technology effectively. …

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