Increasing Input Productivity in Increasing Output from Households in Maluku Province, North Maluku Province, West Papua Province, and Papua Province, Indonesia (Meningkatkan Produktivitas Input Dalam Meningkatkan Ouput Dari Rumah Tangga Di Provinsi Maluku, Provinsi Maluku Utara, Provinsi Papua Barat, dan Provinsi Papua, Indonesia)

Abstraksi

Abstract One of the problems faced by Indonesia is income inequality between the eastern regions of Indonesia (Maluku Province, North Maluku Province, West Papua Province and Papua Province) and the western region of Indonesia. To reduce income inequality, inputs or factors of production in eastern Indonesia must be increased in productivity. How to? This study tells us how to increase input productivity or factor productivity so that household incomes in Maluku Province, North Maluku Province, West Papua Province and Papua Province increase so that income inequality decreases. This study was conducted on the productivity of inputs in the form of capital and land/buildings in increasing household output in the form of household income in Maluku Province, North Maluku Province, West Papua Province, and Papua Province. This study uses the theory of production or production function of Cobb Douglas where output is a function of input which includes capital and land/buildings or Y = f (Capital, Land/Building). As output is household income proxied by household expenditure because in Susenas 2010 and 2018 there is no data on household income. Capital consists of: (a) capital from Credit for People's Business (KUR) programs, (b) capital from bank programs other than KUR, (c) capital from cooperative programs, and (d) capital from loans from individuals. Land/building consists of: (a) land/buildings owned by themselves, (b) land/building by contracts/leases, (c) land/buildings by free of rent, and (d) other land/buildings. Study problems are how productive are: (a) capital from Credit for People's Business (KUR) programs, (b) capital from bank programs other than KUR, (c) capital from cooperative programs, and (d) capital from loans from individuals, (e) land/buildings owned by themselves, (f) land/building by contracts/leases, (g) land/buildings by free of rent, and (h) other land/buildings, in increasing household income in Maluku Province, North Maluku Province, West Papua Province , and Papua Province, Indonesia. This study aims to find out how productive: (a) capital from Credit for People's Business (KUR) programs, (b) capital from bank programs other than KUR, (c) capital from cooperative programs, and (d) capital from loans from individuals, (e) land/buildings owned by themselves, (f) land/building by contracts/leases, (g) land/buildings by free of rent, and (h) other land/buildings, in increasing household income in Maluku Province, North Maluku Province, Province West Papua, and Papua Province, Indonesia. This study uses descriptive analysis method using Susenas 2010 and 2018 data. Productivity measurements are carried out using arc or arch elasticity by reason of avoiding ambiguities in point elasticity. The arc elasticity is input elasticity, namely capital and land/buildings to output, namely household income in Maluku Province, North Maluku Province, West Papua Province, and Papua Province, Indonesia, in 2010-2018. The results of the study are that: (a) in Maluku Province: the most productive capital is capital from loans from individuals (coefficient of elasticity = 1.14) where each 1% increase in the number of households with this capital will increase revenue by 1.14% and the most productive land/building is self-owned land/building (coefficient of elasticity = 2.53) where each 1% increase in the number of households with their own land/buildings will increase revenue by 2.53%, (b) in North Maluku Province : the most productive capital is the capital of the cooperative program (elasticity coefficient = 0.93) where every 1% increase in the number of households with this capital will increase income by 0.93% and the most productive land/buildings are land / buildings owned by themselves (elasticity coefficient = 2.43) where each 1% increase in the number of households with their own land/buildings will increase income by 2.43%, (c) in West Papua Province: the most productive capital is capital from loans from individuals (elasticity coefficient = 1.04) where each 1% increase in the number of households with this capital will increase income by 1.04% and the most productive land/buildings are land/buildings owned by themselves (coefficient of elasticity = 1.61) where each 1% increase in the number of households with their own land/buildings will increase income by 1.61%, (d) in Papua Province: the most productive capital is capital from loans from individuals (coefficient of elasticity = 2,12) where every 1% increase in the number of households with this capital will increase income by 2.12% and the most productive land/buildings are land/buildings that are owned by themselves (coefficient of elasticity = 2.50) where each 1% increase in the number of households with this capital will increase revenue by 2.50%. Capital productivity from loans from individuals is quite high due to the ease of household access to loans from individuals and because of the ease of procedure in obtaining loans from individuals. However, it is feared that the interest charged from loans from individuals is very burdensome to borrowers compared to interest from banks or from cooperatives. Therefore, this study recommends that the government must expand access to banks/cooperatives and facilitate the process of lending from banks/cooperatives so that capital productivity from banks/cooperatives can increase. Meanwhile in the four provinces, the land/building itself is the most productive input so this study recommends that the government must facilitate the process of land ownership in households in Maluku Province, North Maluku Province, West Papua Province, and Papua Province so that more households in the four provinces that own land/buildings and so that their income increases and then income inequality decreases.