The Destruction of Social Capital In Indonesia

Abstract

Background: Business failure in the economic system causes various economic actors to potentially become rent-seekers in an imperfect political system. Sugar is an agricultural commodity that, thus far, is a public good that needs government regulation. This study aims to determine the social capital of Indonesia's sugar interest groups and to determine the dominant variable in Indonesia's sugar industry. Materials and Methods: This research uses a type of explanatory research that has a high relationship level because it not only has independent and comparative values but also serves to explain and predict the relationship with a qualitative approach between variables. Relationship analysis using Decision Explorer version 3.3 software. Results: analysis of the relationship of and variable in the sugar industry, the more variables involved in the loop, the most important relationship between variables in the loop, the most important loop is loop 4 consisting of economic rent, the refined sugar market, entrepreneurs in food and beverage, lobbying, government. Conclusion: It is concluded from the findings of this study that the social capital of Indonesia's sugar interest groups consists of 9 loops, Almost every variable has a weak strength to social capital and leads to damage.