Rural Development: Farmers’ Knowledge, Socio-Economic Impact, Attitudes, and Farming Practices in Batang Regency, Indonesia

The Indonesian government has recently intensified its development agenda through the establishment of Special Economic Zones (SEZs) in several regions. One of the most recent SEZs is located in Batang Regency, officially inaugurated in 2025 (Xinhua, 2025). The industries in the Batang Special Economic Zone are food, manufacturing, logistics, commercial, housing and tourism. Although the development in Batang has generated positive outcomes through local government initiatives that provide employment opportunities within SEZ, rural development should be accompanied by adequate support for farmers who are directly affected by changes in agricultural land. A decline in farmers’ motivation to preserve their farmland could potentially threaten the sustainability of food production in the region.

Social-economic changes play a crucial role in shaping farmers’ attitudes. Li et al. (2022) revealed that farmers’ attitudes are influenced by both social and economic dimensions. The study highlighted family and community pressures as social influences, while household income and compensation for land expropriation as economic aspects which were found in shaping behavioral responses. Industrialization creates complex socio-economic and environmental dilemmas for farmers. Economically, this phenomenon exerts pressure that narrows livelihood options, potentially encouraging unethical behavior as a means of survival (Hendrickson and James, 2005). Consequently, the socio-economic gap between farmers is widening (Dai et al., 2013). Furthermore, from an environmental perspective, industrialization often leads to soil and water pollution, ultimately hindering the implementation of sustainable agricultural systems and exacerbating the long-term vulnerability of the agricultural sector (Khaled and Hammas, 2019). This will impact farmers’ attitudes and decisions regarding farming practices.

Educational interventions and knowledge dissemination tools play a crucial role in enhancing farmers’ understanding of innovative agricultural techniques (Mdiya et al., 2024; Bell and Engelbert, 2025). This improved knowledge positively shapes farmers’ attitudes, making them more receptive and confident in adopting new agricultural practices. However, while declarative knowledge effectively shapes attitudes, it does not necessarily translate into actual adoption behavior (Nguyen et al., 2019). This indicates that having knowledge alone is not sufficient to ensure behavioral change, as farmers may still need practical experience or contextual support to implement new practices effectively. Idris and Zulkifli (2024) found that farmers with higher knowledge of smart farming technologies showed greater motivation and readiness to adopt these innovations. Similarly, Bhujel and Joshi (2023) and Despotović et al. (2021) reported that environmental knowledge fosters positive attitudes toward sustainable farming practices, while Du et al. (2025) demonstrated that higher information literacy enhances positive attitudes and promotes the adoption of green production technologies.

SEZs in Batang Regency, Indonesia, was officially launched in 2025, therefore, only a few studies have been conducted in this area. Moreover, previous researches about Batang SEZs have focused on environmental impacts and local resources (Musyarofah and Tontowi, 2024; Amalia and Sari, 2025). Hence, a study analyzing farmers’ behavior toward industrial development in Batang Regency is considered novel. Several studies have used the attitude variable as a mediator to explain individual practices. However, to the best of our knowledge, studies that explore farmers’ socio-economic conditions and knowledge of SEZs awareness in rural areas, using attitude as a mediating variable influencing their farming practices are still very limited. Therefore, the purpose of this study is to examine the influence of farmers’ socio-economic conditions and knowledge in the areas surrounding the SEZs in Batang Regency on the formation of their attitudes, as well as to analyze how these attitudes affect their farming practices after the establishment of the SEZs.

This study employed quantitative research methods, selecting a sample of 360 farmers residing near the Batang SEZ, Indonesia. The sample specifically included farmers from the subdistricts of Banyuputih, Gringsing, Subah, Limpung, Bandar, and Tulis, chosen based on the proximity of their farms to the Batang SEZ. Data were collected through interviews using structured questionnaires featuring a three-point Likert scale. The collected data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS) with SmartPLS software, chosen for its flexibility in handling complex structural models. The SEM-PLS analysis involved two main stages: the measurement model and the structural model (Ghozali and Latan, 2020). The measurement model evaluated the loading factor for each indicator and assessed convergent validity, discriminant validity, and composite reliability to ensure the robustness of the constructs (Ghozali and Latan, 2020). Subsequently, the structural model was used to test the research hypotheses and determine the R-square value. The independent variables in this study were social aspect, economic aspect, and knowledge; the dependent variable was farming practice, with attitude serving as the mediating variable.

This study evaluated loading factors to ensure that each indicator achieved a value above 0.60. In the first step, Kn7, DS3, DE6, and At1 were eliminated. After the first stage, all indicators were obtained with loading factor values that met the required criteria. Information regarding the indicators for each variable can be seen in Table 1.

Table 1: Variabel operational definition

Figure 1 shows the final path diagram in which all indicators met the established criteria.

All variables obtained AVE values above 0.50, it confirmed that the convergent validity criterion has been fulfilled. Table 2 reports the AVE results.

Using the Fornell-Larcker criterion, discriminant validity was confirmed for this study because the analysis indicated that the square root of each variable’s AVE value was greater than its correlations with other variables. A detailed information of these findings is reported in Table 3.

Table 2: Convergent validity

Table 3: Discriminant validity

Table 4: Cronbach’s alpha and composite reliability

Based on Table 4, all constructs in this study achieved Cronbach’s Alpha and Composite Reliability values greater than 0.70.

The results show that all relationships between the independent and dependent variables are significant, as the T-Statistic values are greater than 1.960 and all P values are less than 0.05.

Table 5: Hypothesis testing

Table 6: R-square

The R-square of this study can be seen in Table 6. Social, Economic, and Knowledge variables can explain 35.1% of Attitude variable, while the remaining 64.9% is influenced by other factors not included in the model. Similarly, Attitude explains 35% of the variation in Farming Practice, with the remaining influenced by factors outside the model.

The demographic characteristics examined in this research include gender, age, formal education, farming experience, land area, and the number of family members working in the industry (Table 7).

The demographic analysis indicates that most respondents are male (58.61%). The predominant age group is 50-59 years old, representing 29.72% of the sample. Most participants have extensive farming experience, with over 40 years reported by 25.28%. A significant portion of respondents cultivate small land areas, with 61.33% owning less than 0.5 hectares. Additionally, most families (76.67%) have no members working in the industry.

Based on Table 5, the results demonstrate that social factors, including industry-farmer interaction frequency, industry-farmer collaboration, industry-farmer conflict occurrence, farmer group meeting frequency, and farmers’ social participation can influence farmers’ attitudes toward SEZs in Batang Regency, Indonesia, as proven by the T-statistic score (2.768 > 1.960). This finding confirms that social aspects play an important role in creating individual attitudes, as social interactions influence how individuals respond to development processes (Li et al., 2022; Khan et al., 2025; Mulya et al., 2025). The development of industries in rural areas has led to changes in social dynamics. Farmers residing close to SEZs have begun to engage with a more diverse group of individuals, including industrial employees. These transformations in social relations may influence farmers’ attitude toward farming practices. Increased participation in social activities provides opportunities for farmers to discuss and share information about industrial impacts (Chen et al., 2023). These interactions help farmers understand the changes occurring around them and may strengthen their attitudes toward the presence of industry.

Table 7: Characteristics of farmers around batang SEZ

Economic factors were also found to significantly influence based on the research findings (2.907 > 1.960). Previous studies have emphasized that economic conditions strongly influence attitudes, as individuals tend to evaluate development initiatives based on their potential economic benefits or risks (Li et al., 2022; Khan et al., 2025; Mulya et al., 2025). The establishment of SEZs in Batang Regency, Indonesia, has altered farmers’ economic conditions. Year-on-year economic growth in Batang in 2023, before SEZ was officially launched, was 4.73% (Statistics Indonesia, 2024). Meanwhile, according to the Statistics Indonesia, year-on-year economic growth in Batang, following the arrival of numerous industries in the SEZ, reached 7.49% in 2024 (Jumadi, 2025). SEZs create opportunities for local communities, including farmers, to initiate and expand businesses in surrounding areas (Li and Wang, 2021; Zeng, 2021). These changes may shape farmers’ attitudes toward industrial presence. Farmers may develop more favourable attitudes toward industrial development when they perceive economic benefits and improved livelihoods (Wu et al., 2024).

This research found that knowledge about SEZs in Batang Regency can influence farmers’ attitudes toward the phenomenon of change (8.050 > 1.960). This result confirms that knowledge influences attitude, as individuals with better understanding are more able to evaluate development impacts and respond appropriately (Mdiya et al., 2024; Bell and Engelbert, 2025). Farmers with sufficient knowledge about SEZs are more likely to understand how this phenomenon affects their activities, which in turn influences their attitudes. This awareness helps farmers make informed decisions about land use, crop selection, as well as exploit new market opportunities and adapt to changing SEZ-related regulations.

Farmers’ attitudes toward SEZ development were found to significantly influence their farming practices, as indicated by a high T-statistic value (10.307 > 1.960). This result supports previous studies indicating that individuals’ attitudes and behaviors can influence their willingness to adopt a program (Despotović et al., 2021; Bhujel and Joshi, 2023). This finding suggests that farmers have a positive attitude toward the presence of the Batang SEZs, as they believe it can open opportunities for collaboration with industries related to their farming practices. The development of rural areas near their farmland does not reduce their motivation to engage in farming, instead, it increases their enthusiasm, as they perceive potential partnerships with industries to enhance agricultural productivity.

This study analyzes the impact of socio-economic factors and knowledge on farmers’ attitudes toward the SEZs phenomenon, as well as the influence of those attitudes on farming practices. The findings revealed that both socio-economic factors and knowledge significantly affect farmers’ attitudes, and that attitude, in turn, has a significant influence on farming practices. This study was limited to the Batang SEZ in Indonesia, which was newly established and inaugurated in 2025. Therefore, understanding farmers’ perspectives and behaviors is essential, as the development may affect their agricultural activities. The results can help the Indonesian government formulate policies that support farmers. Future studies should explore additional factors, as industrial development in rural areas continues to expand and farmers remain among the groups most affected by such change. Moreover, further research could extend the scope to other SEZs across Indonesia to enable comparative analysis between regions and provide a more comprehensive understanding of how SEZ development influences rural farming communities.

The authors would like to express their gratitude to Institute for Research and Community Services, Universitas Diponegoro (Project No; 222-156/UN7.D2/PP/IV/2025) for financial support and facilitating the research process.

This study chose farmers in Batang regency SEZ as subjects because the industry in this region was only officially launched in 2025, so there is still limited research examining this area, especially research that analyzes the relationship between knowledge, socio-economic impacts, and farmer attitudes with farming practices.

Avivah Rahmanıngtyas: Conception and design of the study, sample collection, analysis and interpretation of data, writing manuscript.

Muhammad Luthfie Fadhilah: Conception and design of the study, sample collection, visualization, writing manuscript.

Irma Fauziah: Conception and design of the study, sample collection, statistical analysis, writing manuscript.

The authors declare that no generative AI and AI assisted technology was used in the creation of this manuscript.

There is no conflict of interest between the authors in this study.