Does Qurban Improve Smallholder Welfare? A Difference in Differences Analysis of Livestock Farmers in Indonesia
DOI:
https://doi.org/10.23917/jisel.v9i02.17147Keywords:
Qurban, Rural Welfare, Livestock Sector, Difference in Differences AnalysisAbstract
This study examines the economic implications of qurban for small scale livestock farmers in Indonesia, where the annual Eid al-Adha ritual generates substantial demand for sacrificial animals. Despite its significant economic potential, the distributional effects of qurban on farmer welfare remain unclear. This study aims to evaluate whether increased sacrificial slaughter contributes to improvements in the welfare of smallholder farmers. Employing a quantitative approach with a Difference in Differences (DiD) model and panel data from 32 provinces over the 2017–2021 period, farmer welfare is proxied by the Farmer Exchange Rate Index (NTPT), while sacrificial activity is measured by the number of animals slaughtered inside and outside official slaughterhouses (RPH). The findings indicate that, although NTPT generally increases after Eid al-Adha, the DiD estimates are statistically insignificant, suggesting that qurban does not exert a distinct welfare effect on small farmers. Slaughter conducted through RPHs tends to involve large intermediaries, limiting benefit transmission, while community based slaughter outside RPH shows greater potential for local economic inclusion. Inflation further attenuates real welfare gains. This study provides empirical evidence on the distributive limitations of religious economic activities and highlights the need for more inclusive supply chain policies.
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