DETERMINANT OF PEPPER PLANTATION PRODUCTIVITY TOWARDS THE LOCAL ORIGINAL INCOME AND ITS IMPLICATIONS ON FARMERS EXCHANGE RATES IN BANGKABELITUNG ISLANDS INDONESIA

The decline in pepper productivity in Bangka Belitung Islands Province is due to the fact that most pepper plantations are peoples plantations that still use traditional cultivation techniques without adequate technological innovations. The purpose of this study is to find and analyze the influence of planting area, domestic investment, banking financing and pepper prices on the productivity of pepper plantations and their implications on the native income of the region and the exchange rate of farmers in the Bangka Belitung Islands Province.The data analysis used in this study is a linear regression with the Ordinary Least Square approach. The results showed that (1) planting area, domestic investment, banking financing and pepper prices both simultaneously and partially have a significant and positive effect on the productivity of pepper plantations, (2) the productivity of pepper plantations has a significant and positive effect on Local Original Income, (3) Local Original Income has a significant and positive effect on farmers exchange rates, (4) subsequent research findings, the influence of Local Original Income resulting in Bangka Belitung Islands Province is significantly able to have an impact on increasingwelfare of pepper farmers.