The collapse of social capital: A lesson from Madura, Indonesia

Abstract

This qualitative research tried to look at the failure of the smallholder sugarcane development in Madura. To understand this issue, the approach used was social capital analysis by looking at trust as an important factor. The objective of this research was to understand and explore why the sugarcane development failed in Madura. This research used a qualitative method with a case study approach. The informants were recruited from three regencies in Madura: Bangkalan, Sampang, and Pamekasan) using purposive sampling. The results showed that the failure of the sugarcane development in Madura was due to distrust of farmers and investors as the two actors of sugarcane farming. This distrust arose as they were suspicious of one another and there was no honesty among them. Thus, trust as social capital is needed to develop a sugarcane business in Madura.