Implementation of Local Wisdom in Adoption of Innovation to Increase Traditional Farmers Welfare in Bali

Farmers in the province of Bali in conducting agricultural cultivation cannot be separated from local wisdom. Local wisdom espoused farmers in Bali both in the tangible and intangible form. Tri Hita Karana is a form of local wisdom that underlies the implementation of traditional agriculture in Bali. Including when the farmer decided to adopt agricultural innovations, farmers will always be guided by local wisdom. The aim of this research was to determine the effect of implementation of local wisdom on the adoption of innovation and the farmer’s welfare, which adoption of innovation functioned as a mediator. The results showed that the implementation of local wisdom directly effects positive and significant against the adoption of innovation and the farmer’s welfare. Then the adoption of innovation is also shown to mediate significantly influence the implementation of local wisdom against the farmer’s welfare. So that the mediation in this study is partial mediation. Based on the research results, it is suggested that the implementation of local wisdom is continued by traditional farmers in Bali as well as the adoption of agricultural innovation. The innovation must harmony with local wisdom in order to increase the welfare of traditional farmers in Bali.