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Open Access Publications from the University of California

Scholarly Works (4 results)

  • Article
  • Peer Reviewed
Final Reports (2014)
The purpose of this research was to investigate factors influencing the survival of the patron-client relationship in the era of rural financial institutions, especially in the context of cashlessness. We surveyed 3 areas of ethnic Bugis and Makassar villages with high frequencies of patron-client relations in South Sulawesi, which are surrounded by rural financial institutions (rural banks, cooperatives, rotating savings associations, and money lenders). Specifically, we looked at factors that support the continued existence of patron-client relationships such as social and demographic elements and social capital—and why they still exist when the financial needs of rural Indonesian populations can be more easily met by modern financial institutions. We conducted our case study using a combination of two methods: unstructured interviewing and direct observation.
    Cover page: Banking with the patron: a case study of patron-client relations in Makassar, Indonesia (Final Report)Creative Commons 'BY-NC' version 4.0 license
    • Article
    • Peer Reviewed
    Final Reports (2014)
    There is a general acceptance that the growth of rural financial institutions in Indonesia will increase the access people have to formal banking. However, the growth of these rural financial institutions is developing alongside a (long-standing) informal lending system: the patron-client relationship. We examined to what degree this informal patron-client lending system persists. We found that these patron-client relationships still exist even in the areas with intensive rural-financial institutions in Makassar, Indonesia. From the sub-regencies of Pacinongan, Panakkukang, and Panampu, we select 6 patron-client relationships in different businesses including sea cucumber fish, game centers, calfskin crackers, land plot sales, garages, and fried shallots.
      Cover page: Banking with the Patron: The Case of Patron-Client Relations in Makassar, Indonesia (IMTFI Blog)Creative Commons 'BY-NC' version 4.0 license
      • Article
      • Peer Reviewed
      Final Reports (2014)
      This research explores the social client perspective in mobile money systems, specifically potential resistance to e-money. We focus on 200 poor remittance-receiver families in Central and Eastern Lombok Island in Indonesia. Following Ram and Sheth (1989) we will measure resistance to e-money innovation along five axes: usage, value, risks, tradition, and image barriers. It is not clear whether slow e-money adoption is due to concern over system configuration security; basic fees; aging related to risk and image barriers; perceptions that relate to the input information mechanism; the battery life of a mobile phone; a fear that the list of PIN codes could be lost and end up in the wrong hands; or the usefulness of new technology in general. Could the the important factor be further information that e-money help meet the needs of private banking, increasing convenience and cost effectiveness? Could it be merchant reluctance to use e-money? Could local cooperatives be e-money provider partners, due to the high use of cash-base transactions among Indonesians? Could the use of e-money help out-migrant workers transfer remittances efficiently? A descriptive and factor analysis will be used to summarize information from the survey and in-depth interviews.
        Cover page: Resistance to e-Money in Poor Remittance Recipient Families: The Case of Lombok Island, Indonesia (IMTFI Blog)Creative Commons 'BY-NC' version 4.0 license
        • Article
        • Peer Reviewed
        Papers (2010)

        Poor people face covariate risk, inequality and also an idiosyncratic risk that affect to personal belonging. However, how the poor people response to these risk varies with respect to the types of risks, jobs, gender, and others. Understanding on the income and consumption smoothing behavior of the poor helps business and government to formulate necessary policy and other strategic actions.

        In many cases male and female headed household have different behavior towards risk. Female headed family may have better access to local informal financial institution such as rotated saving, while male headed family have more access to the market of farm and non farm product. Examining how they are different in managing risk fill the literature gap on this issue.

        In this report we examine the practice of saving and depleting assets to achieve consumption smoothing among the poorest household in Yogyakarta, Indonesia. We selected 125 households, representing 25 household in each five regions that meet our research purposes. A closed-questioner is used to collect quantitative data for descriptive causal comparative studies. We found that the behavior varies in response to the types of job, gender, and regions. The sources of the income fluctuation also matter in determining the kind of smoothing the people take.

          Cover page: Managing Risks: How Male and Female Headed Households Differ in Smoothing their Consumption? (Case: Poor Households in Yogyakarta, Indonesia)Creative Commons 'BY-NC' version 4.0 license
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