The Linkage of Salt Farmer’s Financial Literacy with Salt’s Productivity, Capital, Price and Market Access

ABSTRACT
The study analyzes the relationship between financial literacy of salt farmers and people's salt production with
land, volume, sources of capital, and market access. Financial literacy is; the ability of farmers to understand the types of financial products/services from the financial industry and the ability to use them. The production of the
people's salt business (Kugar) has an important contribution to Indonesia's salt production. The quantities of
people's salt have not been able to meet domestic demand, especially industrial salt. That's what drives the import
of salt. The research object is 7 locations in Cirebon Regency, West Java. This area was chosen because it
represents the highest salt product in West Java. Data were taken using descriptive, expalanatory, and purposive
sampling techniques as well as interviews with the Department of Marine Affairs and Fisheries, the Central
Bureau of Statistics, Kugar, and the Ministry of Industry and Trade. The results showed that the financial literacy
of farmers was very low, so productivity was also low. Production costs are loaned by collectors from Rp.
500,000 to Rp. 1,000,000 with a profit sharing system. The selling price of salt from farmers to collectors is
below the market price between Rp. 250/kg, Rp. 300/kg, the highest is Rp. 500/kg. The price of salt from
collectors to industry is Rp. 1,200/kg, Rp. 1,500/kg to Rp. 2,000/kg. Prices, market access and capital, salt
farmers depend on collectors. The profit from salt is sufficient for the cost of living. Asset deposits are limitedto jewelry, cows, motorcycles. 74% of workers do not have financial service products. Only know about
cooperatives and loans to collectors.
Keyword: financial literacy, production, salt prices, capital, market access.