p-ISSN: 2723-6609 e-ISSN: 2745-5254

Vol. 5, No. 10 October 2024 http://jist.publikasiindonesia.id/

Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4065

Analysis of the Effect of Labor Allocation on Changes in

Farmer Household Income Due to the Development of the

Gasing Industrial Zone in Talang Kelapa District,

Banyuasin Regency

*Correspondence

Introduction

Banyuasin Regency is one of the regencies that has experienced rapid industrial

growth compared to other regencies in South Sumatra. These industrial activities are

scattered in several locations. Currently, there is also an industrial area, one of which is

called the Gasing Industrial Estate, located in Talang Kelapa Subdistrict, Banyuasin

Regency. Industrial activities generally impact the region's economic progress, including

contributing to the value of GRDP. Based on data from 2022, GRDP at current prices in

Banyuasin Regency amounted to 28,687.76 billion rupiahs, and the industrial sector

economy. The existence of both large and small industries will bring changes to the socio-

economic conditions of the community. Rahayuningsih (2022) states that the existence

of industry positively impacts the surrounding community's economy but also hurts

community social conditions such as crime, inequality, consumptiveness, and shifting

values. Meanwhile, Nawawi et al. (2022) state that the existence of industries has no real

effect on the cultural conditions of the community. On the other hand, real proof is needed

to determine whether the industry's existence is significant enough to be felt by the

people around it.

Since 2012, the industrial zone has grown rapidly, attracting numerous investors

to establish businesses in various sectors. One visible impact is the shift in work patterns

and plantations only allocate their labor to fertilization, weeding and harvesting. In

connection with the allocation of labor required for agricultural activities, there is very

little, so there is much free time owned by farmers. Farmers can utilize this free time to

work various jobs outside of farming. Thus, farmers around the growing industrial area

can increase household income. The allocation of labor directly affects the level of

household income. Farmer household income can come from three main sectors:

agriculture (on-farm), off-farm (agricultural business), and non-farm. Income from

agriculture comes from farming (on-farm) and agricultural businesses (off-farm). In this

case, farm income is one component of income that can be included on the farm. On-

farm income is obtained through selling rice farms, oil palm plantations, and other farms.

industrial area is low if they only rely on business activities in agriculture. While farmers

still have much free time, it is an opportunity to increase their household income.

Therefore, the researcher is interested in examining changes in the allocation of farmer

household labor time to the total income of farmer households due to business activities

in the growing industrial area in Talang Kelapa District, Banyuasin Regency, South

Sumatra Province. This research examines the relationship between working hours, type

Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4067

deeper insights into the economic impact of industrial activities on households living near

the Gasing Industrial Estate.

Methods

The research was conducted in the community, especially farming households

farming also work in the industrial sector. Therefore, by analyzing the allocation of labor,

we can determine the condition of the income of farmer households around the location

of the growing industrial area (Arikunto, 2021).

The data collected are primary and secondary. Primary data collection will be

conducted in July 2024 through interviews completed with a questionnaire. Primary data

will be collected in July 2024. Primary data was collected using a questionnaire under the

main research objectives and the model of approach to the research objectives (Sugiyono,

2018). Primary data are farming costs, prices, receipts, rice farming income, labor and

family income. Secondary Data Secondary data collection will begin in March -

December 2024. Secondary data is collected through literature at relevant institutions at

near the Gasing Industry area in Talang Kelapa Sub-district, Banyuasin Regency. Over

the past five years, the growing industrial area has experienced developments in both the

types of business activities and the allocation of land use for industrial activities. This

attracts researchers to study how the industrial development in this area affects the

economic conditions of the surrounding farming households. The phenomenon that

occurs, among others, is that many farmer family members who work in addition to rice

farming also work in the industrial sector. Therefore, by analyzing the allocation of labor,

we can determine the condition of the income of farmer households around the location

of the growing industrial area.

labor allocation for business activities outside farming (Wibowo, 2021).

plays an important role in various farming activities, where it is not only the head of the

family who works but also assisted by children, wives and family members who depend

on the head of the family. Most farmers do farming activities using family labor rather

than outside the family. Still, at harvest time, for example, farmers need outside family

labor to help carry out harvesting activities. The fruit is already ripe and rotten if they rely

on family labor alone. Not only does harvesting require additional labor assistance for

some farmers, but weeding also requires the help of outside family labor. Some farmers

fully use outside family labor, from weeding to post-harvest. In more detail, the allocation

of labor for rice farming in various activities ranging from weeding, fertilization, HPT

control, harvesting, drying, transportation, and post-harvest handling can be seen in Table

Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4069

laborers, night watchmen, construction workers, laundresses, domestic helpers, washers,

and other jobs related to business activities around the growing industrial area. The

allocation of labor in each non-farm activity varies depending on the business carried out;

non-farms that have tied and fixed jobs, such as factory employees, factory supervisors,

and security guards, have a larger and fixed labor allocation every day, and non-farms

with jobs such as motorcycle taxi drivers around the industrial area, itinerant vegetable

traders, masseurs, parking is done at certain times. The labor allocation in the services of

laundresses, stalls, and builders is smaller than in jobs like security guards. Because the

business of stalls and washers in the gaming industrial area is carried out almost every

day, sometimes it is done from morning to evening., Still, this work can also be closed or

Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4071

In addition to having a livelihood in the agricultural sector, some people around

the gasing industry area have other businesses such as opening stalls, moonlighting as

laundresses, cooks, gardeners, cleaning services or other jobs around the gasing industry

area. The wages they get vary depending on the type of work or business they do. The

following is the average income earned by farmer families from businesses and work

activities outside the farm:

Table 4. Farm Family Members' Average Income from Non-Farm Work is Around The

Topping Industry Area

Table 4 shows that at least 15 types of business activities can be utilized by the

surrounding community with industrial activities in the growing industrial area. The

average income earned from business activities around the growing industrial area is

Rp14,275,000 annually.

3. Total Farmer Household Income

The total income of farmer households living around the gasing industrial area

Table 5. Average total income of farm households around the gaming industry area

The table above shows that the total income of farmer households living around

the gasping industrial area generally comes from farm and non-farm income, which is

earned by utilizing business opportunities around the industrial area. Amounted to

approximately Rp32,304,705 per year. This proves that the company's presence in the

statistically explain variations. The results of the regression model calculation show

that the coefficient of determination (R

the labor allocation variable can explain the income variable (Y), which is 68.4%. This

means that the labor allocation variable can explain the high and low or the size of income

growth by 68.4% while the remaining 31.6% is influenced by other factors that are not

observed or observed in this study. So that the model error = 1 - R

= 1- 0.684 = 0.316.

The following can be seen in the coefficient of determination table (R

2

) in Table 6.

2. Simultaneous Testing (F Test)

Simultaneous testing obtained a calculated F value of 79.973 (seen from the

ANOVA value) with a significant level of 0.000. Meanwhile, the F table can be found in

the statistical table at a significance of 0.05 where df1 = 1. Df2 = 37. Got an F table of

4.11. The conclusion is Fcount of 79.973> T table 4.11, which means that the labor

allocation variable has a real effect on the size of the increase and decrease in farm

household income. The following simultaneous testing (F test) can be seen in Table 7.

Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4073

b. Dependent Variable: Revenue

3. Partial Testing (t-test)

Based on the t-test estimation, the workforce allocation variable count is 8.943. The

t table can be found in the statistical table at a significance of 0.05 with df = n—k—1 or

39 - 1 - 1 = 37 (k is the number of independent variables). The t-table value is 1.684.

Based on the estimation results of the influence of farmer labor allocation variables

on farmer household income around the gasing industrial area has a parameter value of

302904.132 with a significant 0.000 equal to α = 0.0%, which means H1 is accepted and

ho is rejected. This means that if the sample farmer increases the labor allocation by 1

labor in rice farming is 55.45 HOK per hectare per year. Meanwhile, the allocation of

labor of farm household members from non-farm activities derived from activities around

the location of the gasing industrial area is 213.71 HOK per year. Farmer household

income from rice farming by calculating family labor wages is Rp. 4,995,843.48 per

hectare per year with an average farmer income of Rp. 10,667,225.12 per hectare per

year, while rice farming income that does not account for labor wages is Rp. 3,413,163.98

per hectare per year with an average income of Rp. 11,458,564.87 per hectare per year.

Furthermore, from the results of simple linear regression analysis, it is known that labor

allocation significantly affects the total income level of farmer households living around