The role of social capital on social welfare has been attracting interest from academicians. Indonesia as an agriculture country describes its demography with many smallholder farmers. Thus, the main purpose of this study was to investigate the effects of social capital of smallholder farmers on social welfare. The instrument used to collect data was questionnaire. The number of sample determined by using Slovin's formula then with Proportionate Stratified Random Sampling technique, the selection of the sample, which was groups of smallholder farmers in Kutai Kartanegara Regency. The hypotheses tested using the Product Statistics and Service Solution version 22.0 for Windows. Results of this study revealed that social capital has a positive and significant impact on social welfare. The influence of trust on welfare is positive but not significant. The influence of social network on welfare is positive and significant. The effect of social norms is not significant on welfare. Increasing trust in the members of farmer groups must be taken into consideration by building networks and promoting social norms. However, this effort cannot separated from the behavior of the leaders in this country, thus the public's trust keeps on decreasing.
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