Global Journal of Commerce & Management Perspective
Open Access

Abstract

Determinants of The KKPE Credit Program Repayment of Cattle Farmers in Central Java, Indonesia

Dahri, Parulian Hutagaol, Hermanto Siregar and Pantjar Simatupang4

The sustainability of the credit programs, including the Food Security and Energy Credit (KKPE), is very important to developing countries such as Indonesia, not only to overcome farmers’ limited capital but also to support the achievement of food security. Therefore, the purpose of this study is to analyze the determinants of the KKPE credit program repayment as the important factors in judging the sustainability of a credit program. The data used is mainly primary data collected through interviews of 40 cattle farmers in Central Java, a cattle production center, which are determined using purposive sampling method. The results of the study which used the linear regression models of the ordinary least square (OLS) approach demonstrated that the factors influencing the repayment rate are production risk, administration cost, the interest rate, the condition of the farmers’ group and collateral ownership.