<p class="MsoNormal" style="margin-top:0cm;text-indent:1cm;"><em><span style="font-size:10pt;">The </span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">g</span></em><em><span style="font-size:10pt;">overnment of Kutai Kartanegara </span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">R</span></em><em><span style="font-size:10pt;">egency indicates that the problem of shrimp pond’s business production and profit </span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">has been</span></em><em><span style="font-size:10pt;"> going down and </span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">being </span></em><em><span style="font-size:10pt;">stagna</span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">n</span></em><em><span style="font-size:10pt;">t in Muara Badak.<span> </span>It </span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">is</span></em><em><span style="font-size:10pt;"> caused </span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">by</span></em><em><span style="font-size:10pt;"> capital source i.e own capital, ponggawa, bank loan and government loan.<span> </span>And directly capital source influenced different of quantity, input and output cost.<span> </span>In fact, the performance of lending mechanism </span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">is</span></em><em><span style="font-size:10pt;"> inefficien</span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">t</span></em><em><span style="font-size:10pt;">.<span> </span>The objectives of this research were to analyze </span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">the</span></em><em><span style="font-size:10pt;"> effect and capital source condition and lending mechanism of capital source to production and profit.<span> </span>Econometrics approach was used to solve the problem through production and profit function.<span> </span>OLS and IPA were applied in this research.<span> </span>The result of estimated parameter and perception of </span></em><em><span style="font-size:10pt;">fish farmer<span style="color:#000000;"> related </span></span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">to</span></em><em><span style="font-size:10pt;"> lending mechanism were used </span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">as </span></em><em><span style="font-size:10pt;">policy implication.<span> </span>The result show</span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">ed</span></em><em><span style="font-size:10pt;"> that capital loan from ponggawa, bank, and government were used only as working capital</span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in"> a</span></em><em><span style="font-size:10pt;">nd the mechanism of capital loan from ponggawa was better than the other.<span> </span>It was caused </span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">by</span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in"> </span></em><em><span style="font-size:10pt;">easier requirement and procedure application for lending is</span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in"> better </span></em><em><span style="font-size:10pt;">facility and its services</span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">, </span></em><em><span style="font-size:10pt;">free </span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">of </span></em><em><span style="font-size:10pt;">charge lending mechanism and </span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">relatively </span></em><em><span style="font-size:10pt;">clearance time of credit</span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">.</span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in"> </span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in"><span> </span></span></em><em><span style="font-size:10pt;">Production rate of </span></em><em><span style="font-size:10pt;">fish farmer<span style="color:#000000;"> who related </span></span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">to</span></em><em><span style="font-size:10pt;"> ponggawa were lower than the other.</span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in"><span> </span>However, </span></em><em><span style="font-size:10pt;">profit rate of fish farmer who related own capital were higher than the other.</span></em><em></em></p> <p class="MsoNormal" style="margin-top:0cm;text-indent:1cm;"><em><span style="font-size:10pt;" lang="in" xml:lang="in"> </span></em></p> <p class="MsoNormal" style="margin:0cm 0cm .0001pt 2cm;text-indent:-2cm;"><em><span style="font-size:10pt;" lang="in" xml:lang="in">Key words: </span></em><em><span style="font-size:10pt;" lang="en-id" xml:lang="en-id">capital source effect</span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">, </span></em><em><span style="font-size:10pt;" lang="en-id" xml:lang="en-id">shrimp pond production</span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">, </span></em><em><span style="font-size:10pt;" lang="en-id" xml:lang="en-id">Muara Badak</span></em><em><span style="font-size:10pt;" lang="in" xml:lang="in">, </span></em><em><span style="font-size:10pt;" lang="en-id" xml:lang="en-id">Kutai Kartanegara</span></em><em></em></p>

Abstract

The government of Kutai Kartanegara Regency indicates that the problem of shrimp pond’s business production and profit has been going down and being stagnant in Muara Badak.  It is caused by capital source i.e own capital, ponggawa, bank loan and government loan.  And directly capital source influenced different of quantity, input and output cost.  In fact, the performance of lending mechanism is inefficient.  The objectives of this research were to analyze the effect and capital source condition and lending mechanism of capital source to production and profit.  Econometrics approach was used to solve the problem through production and profit function.  OLS and IPA were applied in this research.  The result of estimated parameter and perception of fish farmer related to lending mechanism were used as policy implication.  The result showed that capital loan from ponggawa, bank, and government were used only as working capital and the mechanism of capital loan from ponggawa was better than the other.  It was caused by easier requirement and procedure application for lending is better facility and its services, free of charge lending mechanism and relatively clearance time of credit.  Production rate of fish farmer who related to ponggawa were lower than the other.  However, profit rate of fish farmer who related own capital were higher than the other.

Key words: capital source effect, shrimp pond production, Muara Badak, Kutai Kartanegara