Principal-Agent Relationship, Uncertain Results and the Moral Economy

The article is the result of research on the principal-agent relationship in traditional small-scale gold mining and car body repair workshops. The research aims to find out the role of the network in the recruitment of workers in the principal-agent relationship and how the uncertainty of work results gives rise to moral economy. The results showed that the principal-agent relationship in mining produced a moral economy. The moral economy demands the work of miners must be able to meet the everyday demands of miners and their families. The percentage of profit-sharing from the agreement of miners and mining entrepreneurs sometimes cannot meet the everyday demands of miners and their families. In such situations, mining entrepreneurs usually voluntarily reduce the percentage of their share. This consistent with Scoot's research on patron-client relations in peasant societies of Southeast Asia. While the low uncertainty of the work results of the workshop workers does not bring up a moral economy like in a gold mine. This study was carried out at traditional gold mining in Tatelu Village, North Minahasa, North Sulawesi in September and October 2017 and at 'Ketok Magic' car body repair workshops in Manado, North Sulawesi in January and February 2019. This research was conducted using qualitative research methods and using data collection techniques in the form of in-depth interviews and observations.