JRSSEM 2022, Vol. 01, No. 6, 721 – 735
E-ISSN: 2807 - 6311, P-ISSN: 2807 - 6494
DOI : 10.36418/jrssem.v1i6.78
ANALYSIS OF THE EFFECT OF PROVISION OF PEOPLE'S
BUSINESS LOANS ON FARMERS' INCOME IN BOSAR
MALIGAS DISTRICT, SIMALUNGUN REGENCY
Nanda Safitri Sinaga
1
Darwin Damanik
2*
Pawer Darasa Panjaitan
3
1,2,3
Faculty of Economics Simalungun University, Pematangsiantar
e-mail: fitri.borsin @gmail.com
1
, darwin.damanik@gmail.com
2
, pawerpanjaitan@usi.ac.id
3
*Correspondence: darwin.damanik@gmail.com
Submitted: 25 December 2021, Revised: 15 January 2022, Accepted: 19 January 2022
Abstract. This study aims to determine the effect of people's business credit on farmers' income
in Bosar Maligas District, Simalungun Regency. This study uses a quantitative method with farmers
receiving People's Business Loans in the Bosar Maligas sub-district, Simalungun Regency,
amounting to 159 people. In this review, there were 30 farmer respondents who used People's
Business Credit in Bosar Maligas District, Simalungun Regency. These results indicate that the
people's business credit variable has a probability value greater than 0.05 and the regression
coefficient shows a positive value. This means that the variable of people's business credit has no
significant effect on the income of farmers in Bosar Maligas District, Simalungun Regency. Based
on this, the hypothesis which states that people's business credit has a positive and significant
effect on farmers' income in Bosar Maligas District, Simalungun Regency is rejected. Based on the
results of testing and discussion of the influence of the independent variable in the form of
People's Business Credit on Farmers' Income in Bosar Maligas Subdistrict, it is concluded that (1)
People's Business Credit Variable has a positive and insignificant effect on Farmers' Income in
Bosar Maligas Subdistrict, Simalungun Regency. (2) Test Results simultaneously declared that the
People's Business Credit simultaneously influence positively and not significant to the Farmers'
Income in the District SimalungunBosar Maligas.
Keywords: credit granting; people's business; farmer's income.
Nanda Safitri Sinaga | 722
DOI : 10.36418/jrssem.v1i6.78
INTRODUCTION
Along with the development of
economic growth and the business world,
more and more people want to start a
business, both in the service and trade
sectors. However, it is different with the
economic conditions in Indonesia (Jafari,
Othman, & Nor, 2012), which still have
economic inequality, unemployment and
poverty rates are still very high.
The current economy is heavily
influenced by the agricultural sector
(Martinat et al., 2016). It is shown from the
contribution of the agricultural sector to
the National Gross Domestic Product, in
the absorption of labour, and the
contribution to fulfilling domestic and
export demand. The number of farms will
continue to decrease.
The development of the agricultural
sector is certainly not easy (Smit, van
Leeuwen, Florax, & de Groot, 2015),
various obstacles and obstacles must be
faced, because the reality is that those
who hold businesses in the agricultural
sector are farmers who have a lower-
middle life which basically increases their
business ability, which is very complex
from various aspects, one of which is
mutually exclusive. Namely lack of capital,
lack of managerial ability and limited
marketing.
The Indonesian economy is expanded
through monetary and business exercises
that continue to create now and again
(Dahles & Susilowati, 2015), both
exercises will continue to work through
financial sector jobs that provide assets to
run businesses so that the Indonesian
economy continues to grow.
Income is an indicator of the country's
economy to get a picture of the economy
that has been achieved. Salary information
obtained can be used to make forecasts
about the country's economy later (Pina &
Venes, 2011).
Salary is one of the markers to
measure government assistance from
individuals or the community, with the
aim that this regional salary reflects the
financial progress of the general public. A
person's salary basically depends on the
work in aid or production, as does the
long period of dedicated work, the hourly
rate of pay one gets.
Credit will enable banks to build
profits and continue their business
activities, while credit will expand the
development of business areas in order to
achieve the most extreme monetary
developments (Möller, 2010).
In essence, the purpose of Public
Improvement is to understand the
existence of Indonesian people who are
prosperous, genuine and intellectual. To
understand this, the progress made by the
Indonesian people is a controlled change
of events, which covers all parts of the
existence of the region, state and state.
Monetary Organisations are mostly
substances whose activities are in the
monetary field (Przychodzen &
Przychodzen, 2015).
Directing, collecting and distributing
assets to people in general, mainly to fund
the business of the organisation.
Monetary organisations can be structured
into bank financial institutions (LKB) and
non-bank financial institutions (LKBB).
Monetary organisations can be structured
into bank financial institutions (LKB) and
723 | Analysis of the Effect of Provision of People's Business Loans on Farmers' Income in Bosar
Maligas District, Simalungun Regency
non-bank financial institutions (LKBB).
Bank monetary organisations consist of
national banks, business banks, provincial
credit banks, and joint venture banks,
while non-bank monetary foundations
can be pooled into finance companies
andbusiness and sales protection and
other monetary organisations (Indrati &
Claraswati, 2021).
As a rule, it can be said that the
financial aspect is a field of concentration
dealing with the material assets of people,
networks, and the state to work on
government assistance of human
existence. Thus, financial matters is the
study of human behaviour and activities
to address their different life problems
and create with existing assets through
creation, utilisation and appropriation
decisions (Bhagaswara, 2021).
Government assistance to the people
of Indonesia is still relatively low
(Ramandei, Rohman, Ratmono, & Ghozali,
2020), this is due to the low level of wages.
A fair salary is commonplace in all regions,
because with a decent salary, the needs of
every family can be met. Even so, the
opening of positions that are open for
regions to further develop government
assistance does not yet have the option of
obliging the entire existing workforce. To
overcome this, many small, small and
medium enterprises should be allowed to
increase salaries such as cultivation,
exchange, and others. However, in
running this business, not all individuals
have sufficient cash flow to maintain their
business, so individuals need sufficient
money to develop their businesses (Tata,
Hart, Sharma, & Sarkar, 2013).
To overcome the problem of capital in
investment, the public authorities planned
the People's Business Credit Program
(KUR) which was disbursed by President
Susilo Bambang Yudhoyono on
November 5, 2007 with the assistance of
Government Regulation Number 5 of
2008 concerning Project Finance Focal
Points to ensure an increase in the speed
of credit disbursement (Demirgüç-Kunt &
Singer, 2017). KUR is an advance through
the provision of working and business
capital organised by a guarantee office for
beneficial organisations whose business is
transferred through banks whose sources
of wealth are entirely from public bodies
with a roof of up to Rp. 25,000,000 for
each account holder.
Talking about providing people's
business credit. Through the KUR
program, the community can gain access
to credit that can be used as business
capital, therefore the government
provides convenience for the community
to obtain capital through all banks that
have people's business credit programs.
Table 1. Report on the Development of People's Business Loans in the District of Bosar
Maligas 2018-2020
No.
Year
Total Distribution of KUR
Ceiling
(Rupiah)
Number of Recipients
(Persons)
1
2018
68,155,148,500
2,662
Nanda Safitri Sinaga | 724
2
2019
73,787,614,596
2,850
3
2020
111,118,500,000
4,371
Source: Bosar Maligas District, 2020
Looking at the information above, we
can see that the roof for circulation KUR
from 2018 to 2020 has grown. The
number of KUR recipients is increasing
from 2018 to 2020. The roof of the KUR
distribution in 2018 to 2020, which is
divided into several types of KUR,
especially retail KUR, TKI KUR and mini
KUR. That capital from individual business
loans has turned into a down payment
position for borrowers. Because the
number of beneficiaries is increasing
every year, the roof is growing every year.
Because individual business cash advance
loans provide interest that is low enough
that the borrower can easily replace the
down payment.
In research, according to Akbar Anzory
(2018), the amount of credit is very
important for the type of obligations that
must be paid as an occasional part to
moneylenders. Where this assistance is
generally given a certain fee which is
referred to as interest on the obligation.
Based on the description of the
background, the authors are interested in
conducting research with the title
"Analysis of the Effect of People's Business
Credit on Farmers' Income in Bosar
Maligas District, Simalungun Regency".
Based on the above background, the
problems that will be studied in this
research are.
How is the influence of people's
business credit on farmers' income in
Bosar Maligas District, Simalungun
Regency?
The purpose of this study is to
determine the effect of people's business
credit on farmers' income in Bosar Maligas
District, Simalungun Regency?
This research is expected to be useful
for:
1. For the author himself, to fulfil one of
the green table requirements in which
to take the thesis comprehensive
exam.
2. For other parties as material for
information, reference and further
research, especially for students of the
Development Economics Study
Program at Simalungun University
who are interested in research on
people's business loans and farmers'
income.
3. For readers as a reference material for
writing topics related to this research
so that it increases knowledge and can
be understood.
METHODS
This study uses a quantitative method,
which is an information search program
that uses information as numbers as a
method to decide data in connection with
the Analysis of the Effect of People's
Business Credit on Farmers' Income in
Bosar Maligas District, Simalungun
Regency. The population of this study were
farmers who received People's Business
Credit in the Bosar Maligas sub-district,
Simalungun Regency, amounting to 159
people. In this review, there were 30 farmer
725 | Analysis of the Effect of Provision of People's Business Loans on Farmers' Income in Bosar
Maligas District, Simalungun Regency
respondents who used People's Business
Credit in Bosar Maligas District,
Simalungun Regency.
This type of research data uses the
following types of data:
1. The type of subject data is based on
the reality in the field, when the
questionnaire is given to the
respondent (subject) The
2. The type of object data is to collect
data that is not in the form of
responses but physically we observe,
record, and clarify according to place
and time behind the events(Allen,
2010).
Data collection techniques in this study
were carried out as follows:Documentation
study,namely by collecting data and
information through literature related to
the problems studied, which can be
obtained from books, journals, internet and
others. In this study, researchers used
information and documents related to the
effect of KUR in increasing Farmer Income
in Bosar Maligas District, Simalungun
Regency.
Interaction To obtain data through
close and personal questions and answers
between analysts and farmers in the local
Bosar Maligas, Simalungun Regime. In
order to obtain data according to the
analyst's assumptions, it spends most of
the day directing the filtering as much
detail as could reasonably be expected.
The meeting was chaired by Mr.
GerhatLubis SH as the Camat, Mr. Karim,
Udin, Edi, and several farmers who are
interested in the KUR program in the Bosar
Maligas area, Simalungun Regency.
RESULTS AND DISCUSSION
Bosar Maligas sub-district is one of the
31 sub-districts that already exist in
Simalungun Regency. Bosar Maligas sub-
district is located in the west of Simalungun
Regency and is directly adjacent to Bandar
sub-district, Simalungun Regency. The
average altitude is 100m above sea level,
which is a flat and undulating area with an
area of 294.40 km² with a land topography
that tends to be flat and mostly planted
hard, such as oil palm and secondary crops.
The population of the community in Bosar
Maligas Susu Subdistrict includes
simalungun hosts, Batak Toba and Javanese
who are immigrants but make up the
majority in the area.
Then the District of Bosar Maligas was
formed based on Law No. 7 of 1956
concerning the Establishment of Regional
Autonomy in Simalungun Regency (State
Institution No. 58, Supplement to State
Institution No. 1092). Furthermore, in
1979 the Bosar Maligas sub-district office
began to build on a land area of 240m²,
which at that time the Bosar Maligas sub-
district still consisted of 15 villages, then
there was a division of the Bosar Maligas
sub-district into two, namely,
1. Bosar Maligas Bosar Maligas
2. sub-district, Bosar Maligas
Representative sub-district. East
became Ujung Padang District. With the
division, the Bosar Maligas sub-district is
divided into 8 villages, namely: Bosar
Maligas, Sei Mangkei, Boluk, Mayang,
Gunung Bayu, Talun Saragih, Dusun
Pengkolan and Parbutaran. In 2000 the
Regent of Simalungun made a decision
Nanda Safitri Sinaga | 726
Nomor 141/3623/Pemdes.
Geographical
Location Located above sea level 100
m², and an area of 4,372.50 ha and
bordered by:
1) North side : Asahan
2) Regency South side : Huta Bayu Raja
3) West District : Bandar District
4) East side : Ujung Padang
District
Figure 1. Map of Bosar Maligas District Demographic population
According to the data of December
2020 the total population of the District
Bosar Maligas totaled 39.557 inhabitants
with details as follows:
Table 1. Total population District of Bosar Maligas by Sex in Tahun2020
No.
Gender
Total
1.
men
23 990
2.
Women
15 567
Source: Population Data of Bosar Maligas Subdistrict, 2020 The
The following is population data based
on occupation in Bosar Maligas
Subdistrict, Simalungun Regency in 2020.
Table 2. Population of Bosar Maligas Subdistrict by Occupation in 2020
No.
Employment
Gender
Total
Male
Female
1.
Farmer
1,741
1,169
2,916
2.
Fishermen
0
0
0
3.
Hodge
179
134
313
4.
Factory workers
3,437
2,169
5606
5.
civil servants
4,327
3,567
7894
727 | Analysis of the Effect of Provision of People's Business Loans on Farmers' Income in Bosar
Maligas District, Simalungun Regency
6.
Self Employed
3,947
1,938
5,885
7.
Physicians
594
670
1,264
8.
Nurses
1,864
3,670
5,534
9.
TNI
3,718
495
4,213
10.
Polri
3,867
2,071
5,938
Source: Population Data in Bosar Maligas Subdistrict, 2020 The
The following is the population based
on age in Bosar Maligas Subdistrict,
Simalungun Regency in 2020.
Table 3. Population Bosar Maligas Subdistrict by Age in 2020
No.
Age Structure
Total
1.
<1
982
2.
1-5
3,654
3.
6-15
9,567
4.
16-49
15,364
5.
50-65
6,471
6.
66-80
2,867
7.
81-100
652
Source: Population Data of Bosar Subdistrict Maligas, 2021
A. Overview of Respondents
Total respondents in this study were 30
farmer customers of the People's Business
Credit program in Bosar Maligas sub-
district. The aspects studied in this study
can be seen as follows:
1) Characteristics of Respondents Based on Gender
Table 4. Distribution of Frequency and Percentage Based on Gender
.
Gender
Frequency
Percentage
1
Male
17
64.5%
2
Female
13
35.5%
Total
30
100%
Source: Data Processed by Researchers, 2021
From the results of the
questionnaire, it shows that the number
ofKUR customers is male17 people with
a percentage 84.5% and female
respondents as many as 13 people with
a percentage of 15.5%. This illustrates
that the People's Business Credit
customers are dominated by 17 men
out of a total of 30 People's Business
Credit customers. For more details, it
Nanda Safitri Sinaga | 728
can be seen in the following table:
2) Characteristics of Respondents Based on Age
Table 5. Distribution of Frequency and Percentage Based on Age
No.
Age
Frequency
Percentage
1
28-33 years
2
2.4%
2
34-39 years
6
10.3%
3
40-45 years
15
68.7%
4
46-51 years
7
18.6%
Total
30
100%
Source: Data Processed by Researchers, 2021
Based on questionnaire results In
this study it is known that the People's
Business Credit customers are
dominated by the age of 28-33 years as
many as 2 people with a percentage of
2.4% and ages 34-39 years as many as
6 people with a percentage of 10.3%.
Some other respondents are in the age
of 40-45 as many as 15 people with a
percentage of 68.7%, age >46 years as
many as 7 people with a percentage of
18.6%.
The age of 40-45 years is in the
productive category and the results
of direct interviews with People's
Business Credit customers on
average have run quite well and are
stable in managing business finances
and developing businesses.
3) Characteristics of Respondents Based on Education
Table 6. Distribution of Frequency and Percentage Based on Education
No.
Education
Frequency
Percentage
1
Elementary School
1
1.3%
2
Junior High School
3
7.2%
3
Senior High School
16
76.8%
4
Diploma
3
4.6%
5
Bachelor Degree
7
10.1%
Total
30
100%
Source: Data Processed by Researchers, 2021
The results of the questionnaire
based on the 30 customers of the
People's Business Credit studied
showed that the dominant education
level was 16 high school graduates, and
1 elementary school graduate with a
percentage of 1.3%. From these data, it
can be assumed that people's business
credit customers with a high school
education level are the most customers.
729 | Analysis of the Effect of Provision of People's Business Loans on Farmers' Income in Bosar
Maligas District, Simalungun Regency
The opinions of customers from direct
interviews which are summarized are
that it is difficult to work in an
office/company because the level of
education from high school graduates
makes customers prefer farming.
4) Characteristics of Respondents Based on Duration of Using KUR
Table 7. Distribution of Frequency and Percentage Based on Duration of Using KUR
No
Length of Using KUR
Frequency
Percentage
1
1 – 1.5 years
4
4.3%
2
2 years – 3 years
18
74.9%
3
4 years - 5
8
20.8%
Total
30
100%
Source: Processed DataResearcher,2021
Based on the results of the
questionnaire in this study of 30
customers surveyed KUR known that
as many as 4 people with a
percentage of 4.3% of customers with
long using 1- KUR 1.5 years, as many
as 18 people with a percentage of
74.9% of customers using KUR for 2-
3 years, and as many as 8 people with
a percentage of 20.8% of customers
using KUR for 4-5 years. From these
results it can be concluded that the
length of time using KUR is the most
chosen by customers, which is 2-3
years, this is because according to
statements from several customers
quoted by the author that the length
of using KUR is for a period of 2-3
years is the most ideal time for pay
off KUR installments.
5) Characteristics of Respondents Based on Amount of KUR Loans
Table 8. Distribution of Frequency and Percentage Based on Number of KUR Loans
No.
Number of KUR Loans
Frequency
Percentage
1
Rp. 1,000,000-5,000,000
6
10.5%
2
Rp. 6,000,000-10,000,000
5
8.5%
3
Rp. 11,000,000-15,000,000
6
10.5%
4
Rp. 16,000,000-20,000,000
10
66.8%
5
Rp. 21,000,000-25,000,000
3
5.7%
Total
30
100%
Source: Data Processed by Researchers, 2021
Based on the results of the questionnaire in this study from 30 KUR customers studied,
it is known that, as many as 6 people with a
percentage of 10.5% with KUR loans Rp.
1,000,000-5,000,000, as many as 5 people
with a percentage of 8.5% with a KUR loan
of Rp. 6,000,000-10,000,000, as many as 6
people with a percentage of 10.5% with a
Nanda Safitri Sinaga | 730
KUR loan of Rp. 11,000,000-15,000,000, and
as many as 10 people with a percentage of
66.8% with a KUR loan of Rp. 16,000,000-
20,000,000, as many as 3 people with a
percentage of 5.7% with a KUR loan of Rp.
21,000,000-25,000,000. It can be concluded
that 10 people with a percentage of 66.8%
prefer to borrow funds of Rp. 16,000,000-
20,000,000, this is in line with the capital
needs of customers who are quite large in
running and developing their farms.
Table. 9. Questionnaire Farmer Income Before and After KUR
Respondents
Income
Income
(Rupiah
Percentage
Improvement (%)
Before KUR
(Rupiah)
After KUR
43000000
1
(Rupiah)
77000000
50000000
62
2
28000000
77000000
50000000%
78%
3
28 million
78 million
48 million
71 %
36000000
4
76000000
40000000
90%
46000000
31000000
76000000
5
48%
73000000 46000000
31000000
6
48%
58000000 46000000
32000000
7
43%
58000000 43000000
35000000
8
57%
58000000 43000000
35000000
9
57%
43000000 68000000
47000000
10
92%
24000000
11
39000000
38000000
58%
12
10000000
76000000
15000000
95%
47000000
31000000
76000000
13
51%
47000000
31000000
76000000
14
51%
56000000 130000000
15
45000000
92%
56000000 130000000
36000000
16
76%
56000000 130000000
17
35000000
91%
57000000 144000000
18
35000000
91%
57000000 144000000
19
45000000
45%
20
31000000
78 million
45000000
45%
78000000
31000000
21
18000000
95%
78000000 13200000
35000000
22
91%
10500000 78000000
23
12500000
90%
24
12000000
72000000
18000000
95%
25
31000000
42000000
70000000
35%
26
31 million
70
million
49 million
58%
731 | Analysis of the Effect of Provision of People's Business Loans on Farmers' Income in Bosar
Maligas District, Simalungun Regency
27
32000000
70000000
32000000
96%
28
32 million
93
million
32 million
96%
29
32000000
76000000
32000000
96%
30
25.4
million
78
million
48.6 million
91%
Source: Processed Data Research 2021
Based on the table, the
questionnaire can be concluded by
comparing the amount of income of
farmers before using KUR and after
using KUR, after using KUR the most
dominant income was around IDR
70,000,000 totaling 19 people and
before KUR the most dominant
income of farmers earning around
IDR 30,000,000. This means that the
income of farmers who borrow
people's business credit can be said
to use KUR loans for the farming
business as well as possible so that
the income of farmers has increased.
Starting in early 2020, Indonesia
experienced a global phenomenon,
namely COVID-19, in which the entire
world experienced a decline in the
economy. One of the farmers who
became my sample said that his
income in early 2020 decreased, after
he borrowed people's business loans
at the bank, his income began to
return to normal as usual every
harvest. This means that the impact
of Covid-19 is very extraordinary for
the people of Indonesia.
Table 10. Questionnaire of Farmer's Capital Before KUR and After KUR
Respondents
Capital
Percentage Increase
(%)
Before KUR
(Rupiah)
After KUR
(Rupiah)
1
31000000
32000000
2%
2
31000000
33000000
4%
3
32000000
34000000
4%
4
31000000
34000000
6%
5
31000000
35000000
8%
6
31000000
49000000
16%
7
8000000
49000000
16%
8
11800000
16800000
16%
9
10000000
45000000
13%
10
11000000
16000000
13%
11
11800000
16800000
2%
12
11800000
16800000
20%
Nanda Safitri Sinaga | 732
13
12000000
21000000
4%
14
6000000
18000000
44%
15
27000000
45000000
44%
16
27000000
48000000
48%
17
27000000
48000000
52%
18
25000000
47000000
53%
19
25000000
47000000
53%
20
25000000
40000000
59%
21
28000000
43000000
59%
22
28000000
47000000
6%
23
27000000
46000000
6%
24
27000000
47000000
59%
25
30000000
50000000
57%
26
30000000
50000000
63%
27
32000000
52000000
63%
28
33000000
48000000
68%
29
32000000
52000000
71%
30
32000000
52000000
105%
Source: Data Processed by Researchers, 2021
Based on the questionnaire table
above, it can be concluded that the ratio of
total capital before using KUR and after
using KUR, before using KUR the most
dominant farmer's capital was around Rp.
30,000,000, after using KUR the most
dominant farmer capital was around Rp.
40,000,000. This means that working capital
before using KUR and after KUR increases,
it means that the people's business credit
program in Indonesia is widely known
among the Indonesian people. For the
current situation where the COVID-19
pandemic has greatly affected the
community's economy, therefore in early
2020 the Covid-19 virus appeared in
Indonesia, many people took loans from
banks. And the people's business credit
program is very easy for additional working
capital. Where interest rates are low.
DISCUSSION
From the results of the previous
hypothesis testing, it can be concluded
that there are hypotheses that are proven
and some are not proven. For this reason,
this discussion section will contain a more
detailed discussion of each variable.
Effect of People's Business Credit (X) on
Farmers' Income (Y).
The estimation results of the people's
business credit variable obtained a
probability value of 0.1201. These results
indicate that the people's business credit
variable has a probability value greater
than 0.05 and the regression coefficient
shows a positive value. This means that
the variable of people's business credit
has no significant effect on the income of
733 | Analysis of the Effect of Provision of People's Business Loans on Farmers' Income in Bosar
Maligas District, Simalungun Regency
farmers in Bosar Maligas District,
Simalungun Regency. Based on this, the
hypothesis which states that people's
business credit has a positive and
significant effect on farmers' income in
Bosar Maligas District, Simalungun
Regency is rejected.
The results of this study are in line with
research conducted by(Bobojonov & Aw-
Hassan, 2014)which concludes in her
research that the number of KUR loans
has a positive value or it can be said that
the higher the credit capital, the higher
the change in income levels that will be
obtained by farmers.
The results of this study are in line with
research conducted by (Gunawan, Ilham,
Syukur, Pasaribu, & Suhartini, 2021)which
concludes in his research that the number
of KUR loans has great benefits in
increasing farmers' income, the positive
value of the variable number of KUR loans
on farmers' income illustrates this
because KUR loans are the capital loans
for farmers are considered capable of
increasing their business activities and
productivity. So that the increase in
productivity and business activities will
ultimately increase the income of these
farmers.
CONCLUSIONS
Based on the results of testing and
discussion of the effect of the
independent variable in the form of
People's Business Credit on Farmers'
Income in Bosar Maligas District, the
Variabelfollowing conclusions are drawn:
1. The People's Business Credit variable
has a positive and insignificant effect
on Farmers' Income in Bosar Maligas
District, Simalungun Regency.
2. Simultaneous test results state that
People's Business Credit
simultaneously has a positive and
insignificant effect on Farmer Income
in Bosar Maligas District, Simalungun
Regency.
3. The result of the test of the coefficient
of determination (R₂) is 0.511389 and
the value of the coefficient of
determination that has been adjusted
to (Adjusted R Square) is 0.844099.
This means that farmers' income is
influenced by the independent
variable, namely, the variablePeople's
Business Credit While the rest is
influenced by other variables that are
not in this study.
From the significant results, the
coefficient of the people's business credit
variable has no significant effect on
farmers' income. The results of this study
are in line with research conducted by
Akbar Anzory (2018) which concludes in his
research that the number of KUR loans has
great benefits in increasing farmers'
income, the positive value of the variable
number of KUR loans on farmers' income
illustrates this because KUR loans are the
capital loans for farmers are considered
capable of increasing their business
activities and productivity. So that the
increase in productivity and business
activities will ultimately increase the income
of these farmers.
Nanda Safitri Sinaga | 734
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