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The Rural Economic Growth in South Sulawesi Drives the National Sustainable Development Goals

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The Rural Economic Growth in South Sulawesi Drives the National Sustainable Development Goals International Journal of Management (IJM) Volume 12, Issue 3, March 2021, pp.9-21, Article ID: IJM_12_03_002 Available online at http://iaeme.com/Home/issue/IJM?Volume=12&Issue=3 ISSN Print: 0976-6502 and ISSN Online: 0976-6510 DOI: 10.34218/IJM.12.3.2021.002 © IAEME Publication Scopus Indexed THE RURAL ECONOMIC GROWTH IN SOUTH SULAWESI DRIVES THE NATIONAL SUSTAINABLE DEVELOPMENT GOALS Bahtiar Maddatuang Department of Graduate Program, Sekolah Tinggi Ilmu Ekonomi Amkop Makassar, Indonesia Abdul Syukur Department of Management, Sekolah Tinggi Ilmu Ekonomi Amkop Makassar, Indonesia Sofyan Hamid Indar Department of Management, STIE Nobel, Makassar, Indonesia Abdul Karim Department of Accounting, Sekolah Tinggi Ilmu Ekonomi Amkop Makassar, Indonesia ABSTRACT The economy of South Sulawesi in the third quarter of 2020 contracted by 1.08 percent. The highest growth was achieved by information and communication at 12.20 percent, health services, and social activities by 7.58 percent. Water supply, waste management, solid waste, and recycling amounted to 7.34 percent. The number of poor people in March 2020 in South Sulawesi reached 776.83 thousand people (8.72 percent), an increase of 17.25 thousand people compared to September 2019 which amounted to 759.58 thousand people (8.56 percent). The percentage of poor people in rural areas is still higher than the percentage of poor people in urban areas. In encouraging economic-based regional economic growth, including 1) Strengthening the sustainability of cash-intensive programs, 2) Increasing village MSMEs, increasing productivity, and transforming the village economy through digital villages. 3) Development of village potential and superior products, including tourism villages, 4) Strengthening the development of agriculture, animal husbandry, and fisheries to support national food security, and 5) Development of digital villages and increasing connectivity infrastructure between villages. Key words: Rural Economic Growth, South Sulawesi, Sustainable Development Goals http://iaeme.com/Home/journal/IJM 9 [email protected] The Rural Economic Growth in South Sulawesi Drives the National Sustainable Development Goals Cite this Article: Bahtiar Maddatuang, Abdul Syukur, Sofyan Hamid Indar and Abdul Karim, The Rural Economic Growth in South Sulawesi Drives the National Sustainable Development Goals, International Journal of Management (IJM), 12(3), 2021, pp. 9-21. http://iaeme.com/Home/issue/IJM?Volume=12&Issue=3 1. INTRODUCTION SDGs (Sustainable Development Goals) are a sustainable development program in which there are 17 goals with 169 measurable targets with specified deadlines. The SDGs are a world development agenda aimed at the welfare of people around the world [1]. The SDGs were published on 21 October 2015 replacing the previous program, namely the MDGs (Millennium Development Goals) as a common development goal until 2030 agreed by many countries in the United Nations resolution forum [2]. So the development framework related to the changing world situation which previously used the concept of MGDs is now replaced with SDGs [3]. Economic recovery after the Covid-19 pandemic requires governments and corporations to put forward improvements in line with the principles of sustainable development [4] or Sustainable Development Goals (SDGs). The process of economic recovery requires synergy from all parties in the economy, one of which is from the village [5]. Villages have become the driving force for national economic recovery, especially with the Village Fund which is the source of driving village activities [6]. South Sulawesi Province is a province that has a level of progress from various sectors, especially the economic sector in eastern Indonesia [7]. The number of villages as many as 2255 in South Sulawesi is the largest in 307 Sub-districts from 21 districts [8]. This fulfills the requirements to become a new center of economic growth that will continue to develop and as a destination for the Province's economic growth [9]. Since 2015 there has been a village fund program, according to the mandate of Law No. 6/2014 on Villages. Village funds are given to villages with several parameters, namely population, area, and poverty [10]. Gross regional domestic product at current prices, the total economy of South Sulawesi in the third quarter of 2020 reached IDR 133.02 trillion and at constant prices in 2010 it was recorded at IDR 86.34 trillion [11]. The effects of the Covid-19 Pandemic and the implementation of the new normal order have had a significant impact on the economy of South Sulawesi [12]. It was recorded that economic growth in the third quarter of 2020 against the third quarter of 2019 was still contracted to -1.08 percent, where the achievement [13] in the second quarter of 2019 was 7.19 percent. The achievement of national gross domestic product in this quarter was recorded at IDR 3894.7 trillion, while according to current prices it was recorded at IDR 2720.6 trillion. Annual economic growth in Indonesia in this quarter also contracted by -3.49 percent, down more sharply than the economy of South Sulawesi. The rate of national economic growth in quarter III-2019 has not been able to exceed the achievement from quarter III-2019 which was positive at 5.02 percent [14]. 2. LITERATURE REVIEW 2.1 Villages in South Sulawesi Province to Support National Economic Growth South Sulawesi's economic growth data in 2019, the agricultural and plantation sectors contributed 13.58% of South Sulawesi's gross regional domestic product, which reached IDR 245.17 trillion [15]. During the global pandemic crisis (Covid-19), predictions of South Sulawesi's economic growth of not below 5% can be obtained by comparing the 2 largest contributing [16] sectors to South Sulawesi's GRDP during 2019, namely the agricultural and http://iaeme.com/Home/journal/IJM 10 [email protected] Bahtiar Maddatuang, Abdul Syukur, Sofyan Hamid Indar and Abdul Karim plantation sectors and the information communication sector. In agriculture and plantations, of course, the Provincial and district governments can maximize the increase in the national food supply sector [17]. Economic growth in South Sulawesi during the global pandemic crisis, the district government can encourage all Village Heads in South Sulawesi Province [18]. A total of 2,255 villages prioritize short-term planting to meet national food needs. It is not without reason that villages must be able to support the current rate of economic growth. All villages currently have budgets available from village funds and village fund allocations ranging from IDR 1 billion per village. If you add up the total village funds in South Sulawesi, the amount is around IDR 2.25 trillion from the number of villages in South Sulawesi Province [19]. From the amount of IDR 2.25 trillion, if 25% is allocated for the use of meeting food needs and improving the village economy, the total allocated budget is IDR 250 million per village. Then the total reaches IDR 563.7 billion money movements in South Sulawesi in the contribution of supporting the wheels of the economy to the [20] fulfillment and supply of food stocks from rural areas in South Sulawesi during the global pandemic crisis [21]. 2.2 Bumdes Participation Encourages Rural-Based National Economic Growth Increasing national development must start from the bottom, that is, development must start from the village [22]. National development can be successful if it is carried out by integrating rural development as the spearhead of the central government. Through the 2014 Village Law, the government has prepared various comprehensive village assistance and development programs [23]. Village funds of IDR 1 billion, for each village in the framework of village development in optimizing village development and utilizing all village potential as a form of optimization of local wisdom [24]. Figure 1 A model framework for the role of BUMDes in improving the village economy Source: Abdul Karim, 2020. http://iaeme.com/Home/journal/IJM 11 [email protected] The Rural Economic Growth in South Sulawesi Drives the National Sustainable Development Goals BUMDes as a village business entity has a very important role in improving welfare in the rural-based economic sector [25][26]. BUMDes is a village economic institution program designed by the government to improve the standard of living of the community in improving the economy. As a village business entity, of course, it must be managed together for the common interest [27]. BUMDes is a source of community effort in maximizing the potential that exists in the village. The following is the framework for the role model of BUMDes in improving the economy of rural communities [15][28]. BUMDes is a village economic institution that is able to contribute constructively to increasing the regional economy through the rural sector. BUMDes has a strategic role in providing welfare to all components of society [29]. The problem of the welfare of rural communities stems from the low economic level of rural communities. The village development strategy must be carried out comprehensively with the various potentials it has [30]. 3. RESEARCH METHODLOGY The research method used in this research is the quantitative method. The subjects or population studied were all-district governments in South Sulawesi Province, as many as 21 districts. This study describes the management of rural economic growth through finance sourced from the state revenue and expenditure budget, regional income and expenditure budgets, and village original income. These three sources of income have an impact on regional economic growth at the provincial-based rural level. The type of data used in this study comes from primary data, where primary data is data obtained from the first source, either from individuals or individuals, such as the results of interviews usually conducted by researchers. In this study, the primary data collection technique was through direct interviews related to village-based economic growth optimization.
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