ANALYSING OF FINANCIAL LITERACY AMONG SELF-OWNED OIL PALM FARMERS IN THE TIDAL LAND ENVIRONMENT OF BARITO KUALA REGENCY, SOUTH KALIMANTAN

Financial literacy is very important for a person not to have problems in their finances to achieve financial well-being. South Kalimantan is faced with the problem of low financial literacy of its people. The people of South Kalimantan, the majority of whom work in the agricultural sector, are faced with low conditions of their welfare. One of the districts that has a very large agricultural potential in South Kalimantan is Barito Kuala Regency with its tidal land. Plantation commodities that are part of the agricultural sector in Barito Kuala Regency are dominated by oil palm plantations that are independently cultivated by the community on tidal land. This study aims to analyze the level of financial literacy and the factors that affect it in independent oil palm smallholders in the tidal land environment of Barito Kuala Regency. The number of samples used in this study was 100 respondents from independent oil palm farmers spread across three sub-districts, namely 47 farmers in Wanaraya District, 27 farmers in Tamban District and 26 farmers in Barambai District. The data collection technique used is a simple random sampling method. The data analysis used level of financial literacy analysis using an approach prepared by the Organisation for Economic Co-operation and Development (OECD), as well as an impact analysis using a binary logistic regression model. The results of the study found that the majority of independent oil palm farmers in the tidal land environment of Barito Kuala Regency are still classified as not being financially literate, which is 62 percent. The average financial literacy index of independent oil palm farmers in the tidal land environment of Barito Kuala Regency is 0.4373. There are four factors that affect the level of financial literacy in independent oil palm smallholders in the tidal land environment of Barito Kuala Regency, namely income, length of formal education, distance of financial institutions and risk preferences.