A thesis submitted in partial fulfilment of the requirements for the degree of Master of Science

Thesis (M.Sc.) - Asian Institute of Technology, 1993

Transmigration is the removal and/ or transfer of population from one area to settle in another area determined upon within the territory of Republic of Indonesia. One of the objectives of the transmigration program is to lift up the standard of living of the transmigrants through agricultural activities. The development of transmigration which is mostly focused on agricultural activities is not free from constraints such as unproductive land and this has an implication on the lower income of the transmigrants. Therefore the transmigrants are forced to find out work out of their own farm. This study is set up with major objectives to understand the transmigration program in an effort to diversify the economic activities of the transmigrants, to know the extent of occupational shifting, to assess the contribution of agricultural and non agricultural incomes. Under this study, two different ecological areas were selected to see the extent of diversification under the settlement program. The results of this study show that diversification of occupation has taken place in secondary occupation. A considerable number of the transmigrants in swampy land settlement (94.9 %) had secondary occupations and 28.3 % in upland settlement. Higher percentage of the transmigrants in swampy land settlement involved in secondary occupations was due to less productive land which forced the tr8Ilsmigrants to search other activities out of their own land. Initiatives for the occupational shifting were from the settlers. It was observed that the authority has not given any emphasis to focus non agricultural employment in resettled areas. Upland settlement had higher contribution from crop produce whereas swampy l8Ild settlement acquired only 32.4 % from crop produce . Highest contribution in swampy land settlement was from farm labour. Among the respondents in both study areas, 11.3% were below poverty line 8Ild this was lower as compared to national level (15.0%). However by type of settlement, swampy land settlement had 22.8 % below poverty line whereas upland settlement had none. Pests were major problems in both study areas. Drainage and land infertility were other problems in swampy land settlement. People were also involved in social and economic organizations. Cooperative and farmers' organizations were preferable because of direct benefits. To promote non agricultural employment opportunities in both areas, several recommendations are proposed 1) To create additional employment with the emphasis on rural industrialization 2) For supplementary incomes, livestock farming especially poultry, milch cows could be emphasized and 3) introduction to cottage industries. To achieve these recommendations government's policy support and involvement is very much essential.