Some Characteristics of Rural Economic Development in Indonesia

Some Characteristics of Rural Economic Development in Indonesia

One of the functions of government is to coordinate and implement village development. Economic development includes land use. As large parts of Indonesia are a suitable area of agriculture. Thus economic development in Indonesia rural is utilizing the land for production.

The productive inputs (factors of production) are the resources employed to produce goods and services. Factors of production are labor, land, capital, and entrepreneurship. Mentioned economists Capitalistic characteristic the components of produce are a measured as the component of price as:
1 Land or natural resources (water, air, soil, flora and fauna of the which are used in production of a products)
2 Labor is human effort used in production includes technical and marketing expertise.
3 Capital: all goods are used in production of other goods. These include machinery, tools and buildings.

The term capital employed in reference to money and also gold. Other factors of production developed by the experts are the management and technology, and materials or raw materials.
Land as a medium for cultivating plants and keep animal.

Prophet Muhammad successfully encouraged his companions to Cultivate idle land (Ihya al-Mawat) to yield crops for foods. Factor in the production of labor as was detailed Described by Ibn Khaldun and others Islamic scholars. Personal development and maintaining the prosperity personnel are already managed a long time ago.
Normally, capital means investment in goods that can produce other goods. It can also refer to machines, roads, factories, schools, and the like in the which human goods and services produces. Investment is important if the economy is to Achieve economical as much as possible and profit growth in a certain period of time or in a process of the production cycle. The capitalistic goal is so simply that is to Achieve as much profit as possible, while Islamic Consider the producer will base his action's value in transactions of economic production, there are three principle values:

a. Proportional or al-tawazun not to be stingy and not Wasteful or extravagant;
b. Justice (al-Aadalah) behave being right and fair; and
c. Ownership (al-Milkiyyah) legally utility of possession.

In order to Ensure the individual and social interests, the Islamic economic system lay a basic theories of the Islamic economic justice (al-al-Iqtishadiyah'Adalah), Social Assurance (at-Takaful Al-ijtima'i), and the efficiency of the economic resources utilities (fa'aliyah)

At the time of Caliph Usman many friends who tried the agricultural sector, especially the cultivation of the soil (Ihyaul Mawat). Usman itself has a vast land and employ 1,000 local workers.
Similarly, the present rural economic development in Indonesia and long time ago in Arab Saudi is based on the development of agriculture.