The Performance Analysis of The Community Economic Institutions (LEM) in Increasing Farmers’ Income of Cocoa Farming System

Abstract

Cocoa is a predominant crop estate commodity produced in Southeast Sulawesi. The main constrain increasing cocoa productivity regarding the non-technical factor is developing cocoa community. The government has launched Cocoa Community Institution (LEM) to overcome lack of community development in a cocoa farming system. This study aims to identify institutions related to the community development based on cocoa commodity and to analyze the performance of LEM. This study was conducted in two Sub-Districts (Lambuya and Besulutu) of Konawe district in Southeast Sulawesi province. Participatory method was implemented to get the primary data through an open interview based on the performance indicators of LEM Sejahtera. The number of respondents was 30 farmers chosen by simple random sampling. The Cocoa Community Institution was the main purpose of this study focusing on its performance of LEM Sejahtera in enhancing smallholders’ income. The results of this study indicated that LEM Sejahtera in Besulutu had contributed significantly to supply input and lend money to help poor resource farmers based on the community development program.