The research aimed to analyze the socioeconomic determinant factors causing why peatlands in South Sumatra are rapidly degraded, thus it is threatening the existence of the human life support system. The research method was using an explorative and descriptive method by making the web portal of "Google search engine". Keywords were used for searching "peatland", "degradation" and/or "socio-economic causes" in title and abstract. To analyze priority level of socioeconomic aspects in contributing to peatlands degradation, thus an AHP analysis was conducted and interview with selected respondents. The research resulted that socioeconomic determinant factors causing peatlands degradation are complex and integrated each other. Based on clustering the main sequence of causing peatlands degradation was performed by increasing population; increasing poverty; win-win approach; security of land ownership; and agricultural infrastructure and expansion respectively. Understanding this cluster with a comprehensive approach is needed to decide what factors play in the degradation of peatland, so that the policies made are precise and targeted. At this time the government requires to restore peatlands, so that peatlands can be preserved forever.

The increased role of the sub-optimal land to support food security continue to be encouraged in Indonesia, given the more limited expansion for potential land. But until recently, development of sub-optimal land becomes not an easy thing. Ecological and technical barriers became the main issue. A series of these issues resulted in a high number of underemproleymeny and poverty in agriculture region. Technological inovation of agriculture and the business diversification can be seen be the solution to those issues. This research aims to analyze the impact of the technological innovation and business diversification on underemployment, working time, household income and also sustainable livelihoods of farmers on the sub-optimal land. The research was carried out in Pemulutan District, Ogan Ilir Regency, South Sumatra Province, Indonesia. The objects of research are farmers which adopter and non adopter technological innovation, and also work outside of paddy farming (business diversification). The research method is the survey. Method of sampling is stratified random sampling. Data obtained in the field analyses using descriptive statistics and inferesia. The results showed there are positive impact of technological innovation on the allocation of working time farmer households, the numbers underemployment, household income and livelihood sustainability. Determinant factors for farmers in applying technology and business diversification are paddy farming income, offfarm income, and age. The use of technology and business diversification proves to be one of the positive scenarios for sustainable livelihood of farmers in sub-optimal land.

Penelitian ini bertujuan menganalisis integrasi pertumbuhan ekonomi dan penciptaan kesempatan kerja sektor pertanian. Hasil analisis bermanfaat bagi pemerintah untuk meninjau apakah kebijakan pembangunan ekonomi yang yang dilaksanakan selama ini telah mendukung penciptaan kesempatan kerja baru di sektor pertanian, apakah sektor pertanian masih mampu menciptakan kesempatan kerja baru serta bagaimanaarah pembangunan ekonomi sektor pertanian ke depan untuk dapat mendukung penciptaan kesempatan kerja baru. Data yang digunakan adalah data sekunder tahun 1977-2012 untuk variabel Produk Domestik Bruto dan kesempatan kerja sektor pertanian. Data dikumpulkan dengan metode dokumentasi. Analisis data menggunakan model Vector Autoregression (VAR). Hasil analisis menunjukkan pertumbuhan kesempatan kerja selalu berada di bawah pertumbuhan ekonomi selama kurun waktu 1977-2012 bersifat labor intensivesehingga tidak mendukung penciptaan kesempatan kerja baru. Pertumbuhan ekonomi dan kesempatan kerja sektor pertanian tidak terintegrasi secara sempurna. Hal ini berarti tenaga kerja yang bekerja di sektor pertanian sudah berlebih dari kapasitas penyerapan sektor pertanian. Penciptaan kesempatan kerja baru di sektor pertanian ke depan hanya dapat diarahkan untuk lapangan kerja yang berkaitan dengan industrialisasi pertanian, namun hal ini harus disertai dengan peningkatan kualifikasi tenaga kerja pertanian agar sesuai dipekerjakan di sektor industri. Kata kunci: integrasi, pertumbuhan ekonomi, kesempatan kerja, pertanian INTEGRATION OF ECONOMIC GROWTH AND EMPLOYMENTOF AGRICULTURAL SECTOR IN INDONESIA ABSTRACT. The study aims to analyze the integration of economic growth and employement at agriculturesector. The results are useful for the government to review whether economic development policies implemented have been supporting the creation of new employment opportunities in the agricultural sector, will the agricultural sector still able to create new employment and determine the direction of economic development of the agricultural sector in the future. The data used are secondary data for 1977-2012 for variables Gross Domestic Product and employment agricultural sector. Data collected by the documentation method. Data analysis using the model Vector Autoregression (VAR). The analysis shows employment growth has always been under the economic growth during the period 1977-2012 in crerating new employment. This suggests that economic growth is more focused oncapital intensive rather than labor intensive at agriculture sector. Economic growth and employment in the agricultural sector is not perfectly integrated. Economic growth employment affects the agricultural sector, but not vice versa.There is a saturation of the agricultural sector to absorb new labor force. Creating new employment direct to agriculture industrialization, wheter this is must be followed by increasing the qualification of agriculture labor.

This paper aims to investigate the impact of land conversion from rice farming to oil palm plantations on the socio-economic aspects of ex-migrants in the South Sumatra tidal swamp, Indonesia. Land conversion from rice farming to oil palm plantations is a form of adaptation for ex-migrant farmers and will increase food deficits in Indonesia. Ex-migrant farmers initially cultivated food crops with conventional technology. This pattern has been changing, which have led to the formation of two large groups of farms, namely rice-based farms implementing mechanisation, and oil palm-based plantations. The results showed that changes from rice farming to oil palm plantations did not make the economy of farm households better. Between the two groups of farmers, there is no difference in arable land, the labour allocation for agriculture and the farmers’ income. In addition, there is not much difference between farmers’ participation in on-farm and out-farm activities. The area of arable land owned, the husbands’age, and family size variables are determinants of farmers’ choice to participate in other jobs activities and influence farmers’ income. Thus, changes in crops from rice to oil palm have no impact on cultivation area, labour allocation, income, on-farm and out-farm activities.

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