HIPPA-Himpupan Petani Pemakai Air (Water User Association-

WUAs) and Employment Opportunities in Rural Area

Case Study of a Village in Plumpang District, Tuban Regency

Rustinsyah

, Ratna Azis Prasetyo

and Djoko Adi Prasetyo

Department of Anthropology, Faculty of Social and Political Sciences, Universitas Airlangga Surabaya

Department of Sociology, Faculty of Social and Political Sciences, Universitas Airlangga, Surabaya

Department of Anthropoloy, Faculty of Social and Political Sciences, Universitas Airlanga, Surabaya

Keywords: HIPPA, Employment Opportunities, Village, Bengawan Solo River Basin, East Java.

Abstract: Indonesia has many large rivers but sometimes agricultural areas on the riverside are less fortunate because

in the rainy season they are affected by floods due to river overflow and in dry season drought occurs. This

caused the agricultural sector in the area to be less attractive to the villagers. However, the success of

managing agriculture irrigation in riparian areas by HIPPA has an impact on the absorption of labor in rural

areas. Agricultural irrigation management involving the participation of rural communities has been set

forth in the Minister of Agriculture Regulation No.79 / Permentan / OT.140 / 12/2012 on Water Resources

Management. This paper explains, “to what extent is the impact of the success of HIPPA on the absorption

of labor in rural areas?”. The study was conducted from April 2016 to December 2017, with a qualitative

approach at HIPPA which has successfully managed agricultural irrigation. Success was measured from

their independence, sustainability in managing irrigation and even gaining economic benefits. The results of

successful HIPPA gave impact to the absorption of labor in rural areas. The types of work including: a)

work related to farming; b) work related to HIPPA management; c) non-farm activities related to trade and

services of HIPPA and farming.

1 INTRODUCTION

One of the serious problems faced by developing

countries, especially Indonesia, is unemployment

and underemployment. According to BPS's records

in May 2018, 127.07 million people were employed,

7.64 percent were categorized as underemployed and

23.83 percent were part-time workers. In the past

year, half of the unemployed and part-time workers

rose by 0.02% and 1.31% respectively, although

there were sectors which had vacancy. There were

an increased employment opportunities on

accommodation and drinking by 0.68 percent, other

services work by 0.40 percent, and manufacturing

industries by 0.39 percent. While the decrease on

employment was on agriculture by 1.41 percent,

construction by 0.20 percent, and education services

by 0.16 percent. Possibility of job vacancy decreased

due to the invention of technology, the narrowing of

agricultural land, and so on.

The government had planned some programs to

address unemployment in rural areas. They even

have allocated village priority funds in Regulation of

the Minister for the Development of Disadvantaged

Villages and Transmigration No. 19 of 2017 which

regulates in detail the priorities of village funds in

2018. Chapter 3 Article 4 states five priorities in

utilizing village funds including: 1) Priority of the

use of village funds to finance the implementation of

programs and activities in the field of village

development and empowerment of village

communities; 2) Priority of the use of village funds

is prioritized to finance the implementation of

programs and activities that are cross-cutting. 3) The

programs and activities referred to in paragraph (2)

shall be among others the activities of superior

products of villages or rural areas, BUM Desa or

BUM Desa Bersama, embung, and village sports

facilities in accordance with the authority of the

village. 4) The construction of village sports

facilities as referred to in paragraph (3) is a business

unit managed by BUM Desa or BUM Desa

Rustinsyah, R., Prasetyo, R. and Prasetyo, D.

HIPPA - Himpupan Petani Pemakai Air (Water User Association-WUAs) and Employment Opportunities in Rural Area.

DOI: 10.5220/0007552908590865

In Proceedings of the 2nd International Conference Postgraduate School (ICPS 2018), pages 859-865

ISBN: 978-989-758-348-3

859

Bersama. 5) The priority of the use of village funds

as referred to in paragraph (1) shall be published by

the Village Government to the village community in

the public space accessible to the village

community. The existence of village funds allocated

to the development programs in rural areas can

certainly absorb labor in the countryside to reduce

unemployment and improving infrastructure. Such

programs can accelerate development and empower

human resources in rural areas.

One of the rural development priority programs

is infrastructure development such as irrigation

facilities to support agricultural activities. The area

on the riverbank is sometimes a dry land area that

does not get enough water for agriculture. However,

Bandungrejo village located in Bengawan Solo

River valley, Plumpang District, can utilize water

flow for irrigation of agriculture by using pump.

Agricultural irrigation management is done by

HIPPA - Himpunan Petani Pemakai Air or Water

Users Association (WUAs). One of the impacts of

the success of HIPPA is to open employment

opportunities in agriculture and non-farm sectors.

Therefore, this paper will seek to answer the

question, "to what extent is the impact of HIPPA in

managing agricultural irrigation that create job

opportunities in rural areas?”.

2 LITERATURE REVIEW

HIPPA is a social, economic, cultural, and

environmentally friendly organization based on

mutual cooperation whose management involves

communities at the village level. The legal basis for

irrigation management has been set forth in: a) Law

No.7 of 2004 on Water Resources; b) Government

Regulation no. 20 of 2006 on Policies for the

Development and Management of Irrigation

Systems; c) Regulation of the Minister of Public

Works no. 30 / PRT / M/2007 concerning Guidelines

for the Development and Management of

Participatory Irrigation Systems, d) Regulation of

the Minister of Public Works No. 31, PRT / M 2007

on Guidelines of the Irrigation Commission; e)

Regulation of the Minister of Public Works No. 32 /

PR / M / 2007 concerning Guidelines for Operation

and Maintenance of Irrigation Networks; f)

Regulation of the Minister of Public Works No. 33,

PRT/ M/ 2007 on Empowerment Guidance of P3A /

GP3A / IP3A; g) Regulation of the Minister of

Agriculture No.79 / Permentan / OT.140 / 12/2012.

In implementation, the provincial and district

governments make regulations based on the above-

mentioned regulation. Similarly, the village

government makes an AD /ART as a guideline for

its implementation, for instance the East Java

Provincial Government made Rule No. 3 of 2009 on

Agricultural Irrigation in the Regions. Similarly, the

village government makes an AD/ART-- statutes and

by laws as a guideline for its implementation. These

resulted in employment opportunities in farm and

non-farm sectors in rural areas when HIPPA

successfully managed the agricultural irrigation.

The job opportunities in the farm sector start

from the preparation to the harvest of crops. Rural

non-farm activities are directly related to agricultural

and non-direct activities. Non-farm activities consist

of activities related to raising non-agricultural

revenues and services, such as trading of agricultural

products, private small businesses and other efforts

to obtain income in order to face the risk of

"diversification of activities or environmental

diversification" in agriculture (Colter, 1997). Stark

and Levhari (1982) define non-farm activities in the

form of working with temporary migration out of the

village to earn income. Ellis (1997) argues the

diversification of livelihoods as "the process for

rural families to build a portfolio in economic

activity to survive and improve their living

standards”. He further said that livelihood

diversification is not always synonymous with

income diversification. Non- farm consists of trade,

manufacturing and services, directly or indirectly

related to local agriculture as well as economic

activities of small towns (Reardon, 1997).

According to Mukopadhayay and Lim (1985),

non-farm economic activities cover all economic

activities such as home industries, agricultural

processing industries, rural transport, trade, and all

activities for commercial purposes outside of

agricultural activities done in rural areas. Various

non-farm activities are influenced by the socio-

economic characteristics of the region. For example,

non-farm activities in remote mountain communities

are also carried out by the farmers' households

which include stalls, household furniture industry,

cracker industry, pestle making and sugar palm

making (Abdullah, 1988). 'Non-farm' does not refer

to primary agricultural or forestry or fishery

activities. Barrett and Reardon (2001) stressed non-

farm activities on sectoral definitions that occur in

primary, secondary (manufacturing), and tertiary

activities such as services.

Some factors attract the development of non-

farm activities in rural areas. First, the

implementation of integrated policies’ realization,

such as the use of technology in agriculture that

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provides to lure large profits, credit programs for

productive economic activities in rural areas, and the

implementation of government-driven agribusiness

programs and livestock farmers. For example, the

GAPOKTAN – Gabungan Kelompok Tani

(Combined Farmers' Group) program is attracting

rise to commercial farmers not only as producers but

they are also involved in the distribution of

agricultural produce (Rustinsyah, 2012). This is in

line with the opinion of Reardon (1997) which said

that the factors which attract the development of

diversification of economic activities in rural areas

are the implementation of intensive and commercial

farming systems and the use of machinery, also the

intensity of the closeness of village and city relations

which open employment opportunities and greater

revenue gains in the non-farm sector. Second, the

closeness and easiness of rural-urban relationships

are also an attraction for opening up non-farm

employment opportunities in rural areas, such as the

emergence of transportation services (e.g. rural

transportation, motorcycle taxis), shops and rural

shops selling manufactured goods to meet the

villager’s needs. Third, the modernization of

agriculture which according to Mellor (1976) can

create non-agricultural employment opportunities in

two ways: a) increasing production by applying new

agricultural technology, especially food production;

b) through stimulation to increase farmers' income

by agricultural diversification. Mellor argues that

agricultural modernization can increase food

production which in turn can increase the income of

wealthy farmers. The condition is certainly followed

by changes in the pattern of household consumption

of rich peasants that ultimately stimulate the growth

of industry and service household needs. For

example, the development of a business that serves

the activities of the farm, the service business that

serves the villagers, the emergence of food stalls and

shops that provide daily necessities, beauty salons,

bridal makeup and so on.

Fourth, the use of cell phones for the villagers.

Molony (2006) studied that mobile phones bring up

business networks in Tanzania and create new forms

of networking. It is further said that through mobile

phones many farmers get services to find

information about market prices. Similarly, the use

of mobile phones among rural Javanese farmers can

expand the social-economic network, increasing the

income of farmers who will eventually open up new

economic activities outside rural agriculture.

Villages can independently become the subject of

economic activity to benefit from people outside the

village.

The fastest growing non-farm activities are trade

and food stalls. Usually household income in the

non-farm sector is greater than the wages as farm

labor (Haggablade et al, 1987). Therefore, non-farm

activities become an important option in order to

increase income and reduce poverty. According to

Reardon (1997), each households in rural Africa

have more than one family member which work in

non-farm activities. According to Rustinsyah (2012),

there is a growing of non-farm activities, especially

traders among farmers of Kebonrejo village, due to

the intensity of horticulture farming activities,

particularly chili.

3 RESEARCH OF METHODS

This research was conducted with HIPPA located in

Bandungrejo village, Plumpang District, Tuban

Regency in 2017. It is a qualitative research by

exploring data through observation, interview and

literature review related to the research theme. The

village of Bandungrejo has a successful HIPPA in

the management of agricultural irrigation.

Successful management of HIPPA is possible in

farming with rice productivity between 10-14 tons

per hectare. HIPPA has 206 hectares of agricultural

land consisting of 193 hectares in Bandungrejo

village, 5 hectares in Plumpang village and 8

hectares in Magersari village.

Farming activities in the village are conducted

almost throughout the year, but HIPPA only

manages rice farm irrigation with two harvest times.

The planting season begun in May /June and the

harvest in August. The second planting season start

in September and harvested in November. In the

rainy season, the area on the outskirts of Bengawan

Solo river is flooded so that farming activities are

ineffective and even failed. For areas that are not

inundated, farming activities relied on rainwater.

The need for labor for agriculture starts from

preparation to harvest. In the planting season to

harvest, farmers and farm workers cannot leave their

villages because they have many job opportunities

and have to work on their farms. The existence of

HIPPA further increases the business and opens

employment opportunities in agriculture and non-

agricultural sector. Non-farm economic activities are

including serving farming activities and the needs of

villagers.

Data analysis. All collected data were then

classified according to the theme of the research and

interpreted by using existing concepts.

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4 RESULT AND DISCUSSION

Bandungrejo village is one of the agricultural

villages in Plumpang Subdistrict, Tuban Regency.

Agricultural land managed by HIPPA Sekarpadi

Desa Bandungrejo covers an area of 206 hectares

consisted of 193 agricultural lands in Bandungrejo

village, 5 hectares in Plumpang village and 8

hectares in Magersari village. Farm lands are

divided into two namely moor (tegalan) and rice

fields (persawahan). The moor area is located near

the Bengawan Solo River which usually flooding in

the rainy season. The rice fields are located far from

Bengawan Solo River. During the rainy season, the

agricultural land in this area is planted with

horticulture which rely on rain water.

For moor area, in a year the farmers can plant

rice twice. The first planting season starts in June

and will be harvested in August / September. In

September they begin planting for the second season

and harvested in November. November is the

beginning of the rainy season thus the agricultural

land in this area will be under water. For rice field

areas that are not exposed to river flows, usually

during the rainy season the farmers plant horticulture

that utilizes rainwater, and in dry season they grow

rice by utilizing the water of Bengawan Solo River

managed by HIPPA. The intensive farming activities

in the village require labors. Work opportunities in

the area are not just for non-farm activities, i.e. to

serve the needs of farming activities and serve the

needs of everyday life.

4.1 Job Opportunities in the Farm-

Sector

The success of HIPPA in managing agricultural

irrigation and farming can absorb labor in rural areas

for both men and women. Labors are required in

paddy field area almost all year round. In the rainy

season, usually horticulture (Cucumis melo L.,

watermelon, tomatoes and others) is planted in the

field. Horticultural crops required male and female

labor. Employment in the agricultural sector by

women is including paddy-planting workers,

cleaning grass, paddy harvest workers. The wage of

female laborers who work from 07.00 to 12.00

ranges from Rp 65.000,00. In the rice-growing

season, almost all female farm laborers get jobs.

Some farm laborers even ask for a wholesale wage.

As one of the rice planters said, "In the planting

season, farmers usually ask for wholesale wage or

upah borongan, around Rp 200.000,00 for work

from 07.00 - 16.00 hours a day. Female peasants are

commonly employed by women who have family

and live in the village, whose husband has a small

tenant or tenant of land. Similarly harvesting are

usually done by men and women, usually in groups.

These groups work to harvest a plot of agricultural

land. According to the Central Bureau of Statistics

(BPS), the nominal wage of national agricultural

laborers in January 2018 is increased by 1.07 percent

compared to the previous month. Thus, the wages of

agricultural laborers rose from Rp 50,568 per day to

Rp 51,110 per day

(https://ekonomi.kompas.com/read/2018/02/15/1548

32326/januari-2018-upah-buruh-tani-dan-

buruhbuilding-rise).

The type of works for male laborers are hoeing,

fertilizing, shouldering, harvesting, and others.

Workers like this starts from land preparation until

harvest. Usually these farm laborers also has a small

farm work or renting the land. Land leases begin

before the dry season, with rental rates ranging from

30-40 million per hectare per year. A farm laborer

lease agricultural land area of 1000 square meters

with a rental price of Rp 4,000,000.00. With the

existence of this arable land, the family of

agricultural laborers can still live in the village to

work on agricultural land and work as laborers in the

village. Similarly the wives also work as farm

laborers.

In addition, the male farm workers in the village

get jobs related to HIPPA activities in managing

agricultural irrigation. Some employment

opportunities related to HIPPA management are: a)

managing HIPPA so they have rights and obligations

as set forth the ART and receive incentives from the

institution; b) work related to maintenance and

construction of agricultural irrigation networks; c)

activities for other rural development. These

activities can be seen from the budget issued by

HIPPA. The following table concerns the incentives

given to the HIPPA Sekarpadi Board from

Bandungrejo village:

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Table 1: Management of HIPPA Sekarpadi, Bandungrejo

village period of 2017-2020.

Type of

Board

tal

Incent

ives

(in %)

Amount of

incentive (in

Rupiahs)

Core

Administrator

(Chairman,

secretary,

treasurer,

technical, and

three field

coordinators)

9 11 22,848,235.00

2 Supervisor 2 1,5 3.115.669.00

Drivers and

Operators

5 4 8.308.448.00

4 Team work 23 17 35,310,908.00

Honor

Services

5 10,385.561.00

6 Total 44 79.968.821,00

Source: Report Management of HIPPA 2017-2020

Note: Rewards are distributed to members according to

their mutual agreement.

Honorable services are distributed to

administrators, implementers assisting rural

development programs such as village heads, village

secretaries, village apparatus, BPD- Badan

Permusyawaratan Desa (Village Deliberation

Agency), LPMD -Lembaga Pembangunan

Masyarakat Desa (Village Community

Development Institute), PKK - Pembinaan

Kesejahteraan Keluarga (Family Welfare

Development) ; Karang Taruna (Youth

Organization), Hansip (Civil Defense Organization),

Tokoh Agama (Religious Leaders), Penjaga

Kuburan (Cemetery Guard), etc.

HIPPA administrators are working hard to make

the water distribution to the farm run smoothly,

resulting in good crops. The duties and obligations

of the HIPPA caretaker are written in the Statutes

and by laws. Success in farming affects the

incentives received by the HIPPA board. Thus the

existence of HIPPA can increase the income of the

villagers as administrators.

The distribution of water to agricultural land

requires infrastructures such as pumps and irrigation

networks. It should be noted that the villages in this

area are affected by floods due to the flooding of

Bengawan Solo River every year. Conditions such

as these caused the irrigation networks to be covered

in mud or even damaged, so it requires maintenance

and development. Enough budget is necessary for

the maintenance and construction of irrigation

networks. HIPPA provides budget for such

activities. The infrastructure maintenance and

construction required labor. The amount of wage for

labors are adjusted to the wages of farm laborers.

Table 2 below shows the budget for maintenance

and construction of irrigation networks.

Table 2: Budget for maintenance and construction of

agricultural irrigation network.

Type of Maintenance,

Development of

Agricultural Irrigation

Network

Amount of

Cost (in

Rupiah)

Labor for excavation of

irrigation canals in several

locations

29.350.500,00

The Construction of dams,

houses of central harvest,

painting office

12.115.000,00

Physical construction:

making wall of irrigation

canals in four locations

54.128.000,00

Penanganan banjir (Flood

mitigation)

52.415.800,00

Rituals of opening harvest

season

4.970.000,00

6 Pest and disease control 14.720.000,00

7 Total

167.699.300,0

Source: HIPPA Coverage Report of Harvest I, Period

2015-2017

Note: The amount that represents the operational cost of

HIPPA reached to Rp 562,613,500 in the first harvest

period (2015

-2017)

Table 2 shows that HIPPA expenditures for

repair workers, agricultural infrastructure

development and others reached Rp 167,699,300.00.

Such activities would require wage labor from local

villagers. Costs incurred for a large enough

workforce are usually more than 50%. In addition,

HIPPA issued budget for material development of

irrigation networks. It is not easy to separate

between labor and material needs because the

reports are usually written in one package.

In 2016, HIPPA Sekarpadi, Bandungrejo village,

received grant aid from the government in the

amount of Rp 200.000.000,00 for the development

of tertiary channels. According to HIPPA

accountability report, the construction of the channel

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863

has involved 247 workers consisted of foremen

artisan, and workers. They get amount of salary of

Rp 100.000,00 per working day for the foreman, Rp

90.000,00 for artisan and Rp 80.000,00 for the

workers. The employment budget is Rp

84,700,000.00.

4.2 Rural Non-Farm Employment

Opportunities

The success of farming sought to raise non-farm

economic activities in rural areas. In harvest season I

(2015-2017), the yield of rice harvest in

Bandungrejo village reached 167,397 kilograms or

worth as much as Rp 528,137,525.00. After

deducting the cost of harvest, the net income of

HIPPA reached Rp 462,616,825.00. This income is

14% of all the farmers' income from rice

productivity. Therefore it is estimated that rice

production in Bandungrejo village reaches 1,195,693

kilograms or worth Rp 2,989,232,500.00 in harvest

season I period (2015-2017).

From these data, the income of farmers from one

rice harvest could reach Rp 2,989,232,500.00. The

existence of farmers' income encourages the growth

of non-farm activities in rural areas to serve the

farming and the livelihoods of the villagers. Non-

farm activities are conducted by single women and

men or together as a family. Some of the non-farm

work done by farmers in this village are: a) work

related to agricultural activities such as trading of

agricultural products, trading of chemical fertilizers

and agricultural medicines; b) work that is not

directly related to agricultural activities such as

opening a shop to sell the necessities of daily living,

as a traveling trader selling food, fruits, vegetables,

making home industries and others; c) as workers

who have nothing to do with the agricultural sector

such as construction workers and other unskilled

laborers; d) work in the field of transportation such

as motorcycle taxis, renting a car and others.

Trade of agricultural products, especially rice is

done by the rich farmers as a cooperation consisting

of husband and wife. Usually they buy rice from

farmers during the harvest season. The purchase of

rice is done on the farm after they finished to be

harvested, the rice threshed and then inserted in

sacks and weighed. At harvest time, traders wait on

cropland ready for harvest. Traders usually buy raw

rice on farms and then processed to rice. For that the

trades hire labors from the village. The number of

rice traders in this village is approximately 50

people. Therefore farmers do not have difficulty to

sell crops. Rice buyers usually employ villagers

between 3-5 people to process raw rice into rice. The

work includes hauling, drying, and grinding raw rice

into rice. The existence of rice traders can absorb

labor in the countryside. Trading daily necessities by

opening stalls to sell nine basic commodities, selling

stationary, etc. are trading activities for the villagers.

But traders usually give credit or loans to their

neighbors. Credit in the stalls generally occurs in the

rainy season from November, December, January

and February due to agricultural land, especially

when the moors located on the outskirts of rivers are

submerged in water thus decreasing farmer

activities.Many female farm laborers are

unemployed, but male farm workers can still work to

do hoeing or as laborers in the village. To meet the

needs of regular daily shopping they open stalls as

vendor of food, fruits, vegetables, and cake sellers in

the village. Trading the finished food becomes a

lucrative activity for women in particular. They

usually serve the farm workers who work in the field

or moor. Similarly, fruit and vegetables traders

peddle their goods around the village.

Some villagers raise cattle for investment. Those

who raise livestock are nurturing it with traditional

systems but some are cooperating with investors.

Those who cooperate with investors from Tuban

breed their cattle with advanced maintenance

system. The intensity of farming activities in one

year provides income for the villagers to encourage

the growth of rural non-farm economic activities in

services such as village builders, motorcycle taxis,

and others.

5 CONCLUSIONS

The success of HIPPA in managing agricultural

irrigation that has impacts on the success of farming

with high crop productivity can open up rural

employment opportunities both in agriculture and

non-agriculture sectors for rural families. Some

employment opportunities in the countryside are : a)

employment opportunities related to agricultural

activities; b) employment opportunities related to the

existence of HIPPA in managing agricultural

irrigation; c) employment opportunities related to

maintenance, construction of agricultural irrigation

facilities; d) non-farm job opportunities such as the

emergence of traders selling agricultural medicines,

pesticides and others, the emergence of rice traders

who processed raw rice into rice; the emergence of

shop that provides goods - everyday necessities, the

emergence of street vendors who peddle food,

vegetables, fruits and others; e) employment

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opportunities in services such as carpentry, building,

transportation or motorcycle taxi; f) the emergence

of traditional breeder farmers and cooperation with

investors; g) and others.

Such conditions will drive the dynamics of rural

development hence the village is not only an object

but the subject of development. Therefore, the

government is expected to encourage agricultural

development by providing support for agricultural

infrastructure.

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