Research on World Agricultural Economy

The Role of Financial Inclusion and Technology on Farmers' Attitude and Income

Syarifuddin Yusuf

Department of Management, Fakultas Ekonomi dan Bisnis, Universitas Muhammadiyah, Parepare 91111, Indonesia

Abdullah Bora

Department of Manajemen, Institut Teknologi Bachruddin Jusu Habibie, Parepare 91111, Indonesia

Irwan Irwan

Department of Manajemen, Fakultas Ekonomi Dan Bisnis Universitas Muhammadiyah, Parepare 91111, Indonesia

Andi Bahri Soi

Department of Manajemen, Fakultas Ekonomi Dan Bisnis Universitas Muhammadiyah, Parepare 91111, Indonesia

Muh Rum

Department of Manajemen, Fakultas Ekonomi dan Bisnis Universitas Muhammadiyah, Makassar 90111, Indonesia

Junaidi Junaidi

Department of Accounting, Fakultas Ekonomi dan Bisnis Universitas Muhammadiyah, Palopo 91911, Indonesia

DOI: https://doi.org/10.36956/rwae.v6i3.2118

Received: 5 May 2025 | Revised: 12 June 2025 | Accepted: 20 June 2025 | Published Online: 4 August 2025

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Abstract

Interacting in a dynamic society and the demands of a modern lifestyle demand fast movement in meeting complex financial needs. This study aims to investigate how financial inclusion and technology influence farmers’ financial attitudes and income in the Sulawesi Selatan district, Indonesia―a total of 657 participants who filled out the questionnaire and joined this study. Structural equation modelling (SEM) was used to examine the research hypotheses. This study confirms that financial inclusion has a greater effect on farmers’ financial attitude. Whereas, financial technology does not have a positive effect on farmers’ financial attitude. Furthermore, farmers’ financial attitude has a positive and significant effect on farmers’ income. Interestingly, farmers’ financial attitude partially mediates the role of financial inclusion and technology on farmers’ income. This study contributes to the understanding of the impact of financial inclusion and technology on farmers' financial attitudes and income in Sulawesi Selatan, Indonesia. It reveals that financial inclusion significantly enhances farmers' financial attitudes, while technology does not have a positive effect. Additionally, farmers' financial attitudes have a positive influence on their income and partially mediate the relationship between financial inclusion, technology, and income. These findings highlight the importance of policies that not only improve access to financial services but also promote financial literacy and positive attitudes. This research serves as a valuable reference for policymakers and educational institutions aiming to foster entrepreneurship among rural populations.

Keywords: Financial Inclusion; Financial Technology; Farmers’ Attitude; Farmers’ Income; Indonesia

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