THE EFFECT OF SMALL BUSINESS LOANS (KUR) ON INCREASING FARMERS' INCOME AT PT. BANK RAKYAT INDONESIA (PERSERO) TBK. BARANTI BRANCH

Abstract

This study aims to determine the effect of the People’s Business Credit (KUR) program on increasing farmers’ income at PT. Bank Rakyat Indonesia (Persero) Tbk. Baranti Branch. The background of this study stems from the phenomenon that, although KUR disbursements continue to increase every year, their impact on farmers’ income still varies significantly in the field. This study employs a quantitative approach using a survey method. The population consisted of 735 KUR recipient farmers at BRI Baranti Unit, from which 88 respondents were selected using the Slovin formula. Data were collected via a questionnaire and analyzed using simple linear regression. The results indicate that all research instruments were found to be valid and reliable, the regression model met all classical assumption test requirements, and the provision of KUR was proven to have a positive and significant effect on increasing farmers’ income in Baranti Subdistrict, contributing 22.8% to the variation in farmers’ income. These findings indicate that the KUR program plays a strategic role as a financing instrument capable of driving the growth of farming businesses and strengthening farmers’ working capital in the region.