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 DRIVES THE NATIONAL SUSTAINABLE DEVELOPMENT GOALS

Bahtiar Maddatuang Department of Graduate Program, Sekolah Tinggi Ilmu Ekonomi Amkop ,

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 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

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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.

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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. In this study, data sources were obtained from interviews with village officials and village communities. The next type of data is secondary data, which is primary data that has been further processed and presented either by the primary data collector or by other parties, for example in the form of data, tables, or diagrams. The data will be used to support the variables used in this study. The sampling technique used was non-probability sampling with a saturated sampling technique. The economic growth of South Sulawesi Province is expressed in percentage figures. With the gross regional domestic product indicator, economic growth can be calculated using the following formulation: R (t-1, t) = PDRBt – PDRBt-1 x 100% PDRBt-1 Information: R: Economic growth rate expressed in percent PDRB: Regional income in year t PDRBt-1: Regional income in year t (previous year)

4. RESULT AND DISCUSSION 4.1 Result 4.1.1 Poverty Conditions in South Sulawesi Province The number of poor people in South Sulawesi in March 2020 was 776.83 thousand people, an increase of 17.25 thousand people when compared to the conditions in September 2019 and an increase of 9.03 thousand people when compared to conditions in March 2019. The percentage

http://iaeme.com/Home/journal/IJM 12 [email protected] Bahtiar Maddatuang, Abdul Syukur, Sofyan Hamid Indar and Abdul Karim of poor people in March 2020 was 8.72 percent or an increase of 0.16 points compared to the conditions in September 2019 and an increase of 0.03 points compared to the conditions in March 2019. During the period March 2019 - March 2020, the percentage of poor people in urban areas increased by 0.05 points. In absolute terms, there was an increase in the number of poor by 3.70 thousand people from 170.10 thousand people in March 2019 to 173.80 thousand people in March 2020. Table 1 Poverty line per capita per month by component and region South Sulawesi Province March 2019 - March 2020 Poverty line Region / Year (IDR / Capita / Month) Total Food Not food Urban March 2019 238,425 100,572 338,997 September 2019 251,107 103,663 354,770 March 2020 257,455 105,906 363,361 Changes in March 2019 - March 2020 (%) 7.98 5.30 7.19 Change September 2019 - March 2020 (%) 2.53 2.16 2.42 Rural March 2019 254,134 68,088 322,223 September 2019 260,579 70,484 331,062 March 2020 268,024 71,719 339,743 Changes in March 2019 - March 2020 (%) 5.47 5.33 5.44 Change September 2019 - March 2020 (%) 2.86 1.75 2.62 Urban + Rural March 2019 247,704 82,176 329,880 September 2019 256,826 84,729 341,555 March 2020 263,690 86,574 350,264 Changes in March 2019 - March 2020 (%) 6.45 5.35 6.18 Change September 2019 - March 2020 (%) 2.67 2.18 2.55 Primary data, 2021. Meanwhile, in rural areas during the same period, the percentage of poor people in rural areas also increased by 0.38 points. In absolute terms, the number of poor people in rural areas increased by 5.34 thousand people from 597.69 thousand people in March 2019 to 603.03 thousand people in March 2020. The increase in the number and percentage of poverty is suspected to be a continuation of the covid-19 pandemic that hit the economy and reduced people's purchasing power. There is a significant difference in the percentage of poor people between urban and rural areas. The percentage of poor people in rural areas is greater when compared to urban areas. In March 2020, the percentage of poor people in rural areas was recorded at 11.97 percent, while for urban areas it was 4.49 percent. The development of poverty in South Sulawesi from March 2015 to March 2020 was quite fluctuating. After experiencing an increase in September 2015, poverty tends to slump until September 2019 and increases again in March 2020. The determination of the poor is preceded by determining the poverty line as the amount of expenditure required by the population to meet basic food and non-food needs. There are two components to calculate the poverty line, namely the food poverty line and the non-food poverty line. Furthermore, the poor population is determined based on the position of the average per capita expenditure per month against the poverty line. People with an average per capita expenditure per month below the poverty line are classified as poor During March 2019 - March 2020, the poverty line has increased, from IDR 329,880 per capita per month to IDR 350,264 per capita per month or an increase of 6.18 percent. By

http://iaeme.com/Home/journal/IJM 13 [email protected] The Rural Economic Growth in South Sulawesi Drives the National Sustainable Development Goals considering the components of the food poverty line and the non-food poverty line, it can be seen that the role of the food commodity is much larger than the role of non-food commodities (housing, clothing, education, and health). In March 2019, the contribution of the food poverty line to the poverty line was 75.09 percent and in March 2020 its role has increased to 75.28 percent. The role of the food poverty line on the poverty line for urban areas in March 2019 was 69.36 percent, increasing to 70.85 percent in March 2020. Meanwhile, for rural areas in March 2020, it was 78.89 percent, an increase of 0.02 percent from March 2019 which was 78.87. In March 2019 for urban areas, the contribution of the non-food poverty line to the poverty line was 29.67 percent, while in March 2020 it was 29.15 percent. The same thing also happened in rural areas, in March 2019 its role was 21.20 percent, decreasing to 21.11 percent in March 2020. The most important food commodity for the poor is rice which contributes 28.31 percent in rural areas and 19.69 percent in urban areas poverty. In the period March 2019 - March 2020, the poverty depth index (P1) and the poverty severity index (P2) showed an increasing trend, as well as the poverty severity index (P2) which also increased. the poverty depth index (P1) increased by 0.081 points, from 1,447 (March 2019) to 1,528 (March 2020). The Poverty Severity Index has increased by 0.045 points, from 0.344 in March 2019 to 0.389 in March 2020.

Table 2 Poverty depth index (P1) and poverty severity index (P2) in South Sulawesi Province by region, March 2019 - March 2020 Year Urban Rural Urban + Rural Poverty depth index (P1) March 2019 0.632 2.072 1.447 September 2019 0.807 2.258 1.628 March 2020 0.694 2.168 1.528 Poverty severity index (P2) March 2019 0.132 0.507 0.344 September 2019 0.198 0.616 0.434 March 2020 0.157 0.568 0.389 Primary data, 2021. Table 2 data indicates that the average expenditure of the poor tends to be further away from the poverty line, and the disparity of expenditure among the poor is widening compared to the previous period. The poverty depth index (P1) and poverty severity index (P2) values in rural areas are much higher than in urban areas. The average income and inequality of the poor in urban areas is better than in rural areas.

4.1.2 Changes in the consumer price index in South Sulawesi Province In December 2020, the consumer price index increased from 104.86 in November 2020 to 105.38 in December 2020. Thus, the combined 5 cities in South Sulawesi experienced inflation of 0.50 percent. In December 2020, all of the 5 regencies/cities in the consumer price index in South Sulawesi experienced inflation. The highest inflation occurred in Makassar City at 0.57 percent and the lowest inflation occurred in the City of at 0.07 percent. The combined inflation in 5 regencies/cities in South Sulawesi that occurred in December 2020 was caused by price increases in several expenditure groups, namely transportation 1.34 percent, food, beverages, and tobacco 1.12 percent, clothing and footwear 0.31 percent, health group. 0.09 percent, the food and beverage/restaurant group by 0.04 percent, the recreation, sports, and culture group by 0.02 percent; and the housing, water, electricity, gas, and other fuels group of 0.01 percent. Meanwhile, several other expenditure groups experienced a

http://iaeme.com/Home/journal/IJM 14 [email protected] Bahtiar Maddatuang, Abdul Syukur, Sofyan Hamid Indar and Abdul Karim decrease in prices, namely the personal care and other services group by 0.15 percent and the equipment, equipment, and household routine maintenance group by 0.01 percent. Meanwhile, the information, communication, and financial services group as well as the education group did not tend to experience changes in prices compared to the conditions in November 2020. In December 2020, the highest inflation occurred for transportation at 1.34 percent. Inflation in this group was triggered by an increase in prices in the passenger transportation services sub- group by 6.43 percent. Meanwhile, the vehicle purchasing sub-group, the personal transportation equipment operation sub-group, and the goods delivery service sub-group did not experience any changes in prices relative to the conditions in November 2020. The expenditure group that experienced the highest price decline in December 2020 was the personal care and other services group by 0.15 percent. Deflation in this group was driven by a decrease in prices that occurred in other personal care sub-groups by 0.67 percent. Meanwhile, other sub-groups actually experienced price increases, namely the personal care sub-group by 0.17 percent and the other services sub-group by 0.09 percent.

Table 3 Consumer price index and combined inflation rate in 5 regencies/cities in South Sulawesi Province December 2020. November 2020 November Calendar year Inflation Inflation Category consumer price inflation inflation year contribution in index 2020 2020 to the year November 2020 General 105.38 2.04 2.04 2.04 0.4977 Food, drink, and tobacco 107.66 1.12 3.44 3.44 0.3240 Clothing and footwear 106.59 0.31 2.03 2.03 0.0270 Housing, water, electricity, gas, and other 101.10 0.01 -0.01 -0.01 0.0014 fuels Household equipment, tools, and routine 104.61 -0.01 1.39 1.39 -0.0006 maintenance Health 107.70 0.09 4.94 4.94 0.0016 Transportation 104.18 1.34 0.09 0.09 0.1520 Information, communication, and 100.03 0.00 -0.48 -0.48 0.0002 financial services Recreation, sports, and 103.74 0.02 0.51 0.51 0.0003 culture Education 101.88 0.00 -0.48 -0.48 0.0001 Providers of food and 106.29 0.04 3.95 3.95 0.0030 beverages Personal care and other 112.12 -0.15 5.56 5.56 -0.0114 services Primary data, 2021. The food, beverage, and tobacco group had the largest share/contribution to the combined inflation of 5 cities in South Sulawesi in December 2020 amounting to 0.32 percent. The sub- group that gave the highest contribution was the food sub-group by 0.31 percent, while the non- alcoholic beverage sub-group only contributed 0.02 percent to the December 2020 inflation. The dominant commodities contributed/contributed to the combined inflation of 5 Regencies / Cities in South Sulawesi Province, namely: air transportation, Cayenne pepper, milkfish/sponge fish, 4-wheeled vehicle rates online, chicken eggs, squid, shallots, water spinach, inter-city transportation and cooking oil. Meanwhile, commodities that contributed/contributed to

http://iaeme.com/Home/journal/IJM 15 [email protected] The Rural Economic Growth in South Sulawesi Drives the National Sustainable Development Goals deflation were skipjack tuna/hawksbill, gold jewelry, purebred chicken, chayote, leeks, pears, limes/limes, watermelon, ice, and sweetened condensed milk.

Table 4 Monthly inflation, calendar year and year to year, combined 5 regencies/cities in South Sulawesi Province in 2018 - 2020 Inflation rate 2018 2019 2020 December 0.86 0.04 0.50 December calendar year 3.50 2.35 2.04 Year over year (December year n against December 3.50 2.35 2.4 year n-1) Primary data, 2021. The inflation rate for the December 2020 calendar year for the combined 5 regencies/cities in South Sulawesi Province was 2.04 percent, lower than the December 2019 inflation rate of 2.35 percent and still lower than the November 2018 calendar year inflation of 3.50 percent. The year-on-year inflation rate (December 2020 against December 2019) is 2.04 percent. The annual inflation rate in December 2020 is lower than the inflation rate in the same period in 2019 of 2.35 percent and in 2018 of 3.50 percent.

5. DISCUSSION 5.1 Development Framework in The Population Growth Rate The population of South Sulawesi which continues to increase and its number is relatively large will have positive and negative impacts. The large population is an indicator of the availability of a sufficiently adequate workforce. This is also confirmed by the number of productive age population (15 to 64 years) which dominates at 65.98 percent of the total population. However, this large number of workers has the potential to increase the unemployment rate. A large number of workers requires the provision of large employment opportunities as well. If new job growth is unable to keep up with the workforce growth, the number of unemployed will increase. The relatively large population also has an impact on the provision of foodstuffs and various decent living facilities. The government must be able to improve food stability to meet the needs of the entire population. Because one of the main indicators of population welfare is closely related to basic human needs, namely the fulfillment of staple foods. The growth in food production must be proportional to population growth so that South Sulawesi Province is still able to become a rice granary area in Eastern Indonesia. Based on regencies/cities, in the 2018-2019 period, there were 9 districts/cities with a population growth rate above the population growth rate of South Sulawesi Province. Meanwhile, the highest population growth rate in that period was achieved by City (2.18 percent), followed by East (1.99 percent), and (1.59 percent). Meanwhile, the three districts/cities that experienced the lowest population growth rate were (0.10 percent), (0.25 percent), and (0.40 percent). The relatively high rate of population growth will have an impact on development, including in determining population policies. With a relatively high population, policymakers must consider many things. For example, the provision of facilities and infrastructure to support the implementation of population policies.

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Table 5 Development framework for South Sulawesi Province Year Total population Annual growth rate (%) Sex ratio 2015 8,520,304 1.05 94.45 2016 8,606,375 1.01 95,50 2017 8,690,294 0.98 95,54 2018 8,771,970 0.94 95,58 2019 8,851,240 0.90 95,61 Primary data, 2021. During 2015-2019 the population growth rate in South Sulawesi Province continued to decline. Finally, the population growth of South Sulawesi Province is around 0.90 percent. On average, during 2015-2019 the population growth rate of South Sulawesi was still in the range of 0.98 percent. However, it would be nice if the population growth rate decreased to less than one percent. Furthermore, if you look at the composition of the population according to gender, the sex ratio in South Sulawesi in 2019 is 95.61. This figure implies that out of every 100 female residents, there are 95 or 96 male residents. In other words, the male population in this area is less than the female population.

Figure 2 Population growth rate by Regency / City in South Sulawesi Province For the gender ratio based on districts/cities, there are 5 districts/cities that have a sex ratio above 100. Or in other words, the male population in the district/city is more than the female population. The largest gender ratios were in (105.72), (101.90), (100.84), (100.56), and (100.18). Meanwhile, the three districts/cities with the lowest gender ratio are Soppeng Regency (89.06), (89.54), and (91.78).

5.2 Contribution of village funds to economic growth Village funds, which are increasing in number every year, are expected to be able to improve the economy of rural communities. Based on data from the central bureau of statistics,

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Indonesia's economic growth throughout 2018 was 5.17%. The average economic growth in 122 underdeveloped regions reached 6.47%. During 2015-2019, the allocation of village funds increased from IDR 20.8 trillion to IDR 70 trillion. The dominance of the use of Village Funds has not yet entered the productive sector, 77% is still concentrated in the road, bridge, and port sectors. In addition, it is used to increase village connectivity infrastructure development by 36.15%, and reduce investment costs to villages by up to 0.75%. Since the Covid-19 Pandemic hit the entire world, village funds will be used in the field of improving the village economy. The economic growth of this village can be developed in various ways. First, connectivity to the pond location. Second, the development of rural economic clusters. Third, the development of a tourist village. Fourth, digitalization of villages and e-commerce for trade from villages. Fifth, increasing labor productivity through improving the quality of human resources. South Sulawesi Province is an area in the eastern region of Indonesia that has the most number of villages as many as 2255 villages. The following is the distribution data of the number of villages in South Sulawesi from 21 districts.

Table 6 Number of villages per district No District Sub-district Village Total population 1 Bantaeng 8 46 176,699 2 Barru 7 40 165,983 3 Bone 27 328 717,268 4 Bulukumba 10 109 394,560 5 Enrekang 12 112 190,579 6 Gowa 18 121 652,329 7 Jeneponto 11 82 342,222 8 Selayar 11 81 122,055 9 Luwu 21 207 332,482 10 Luwu Timur 11 124 234,069 11 Luwu Utara 11 166 287,472 12 Maros 14 80 322,212 13 Pankep 13 65 305,758 14 Pinrang 12 69 351,161 15 Sidrap 11 68 278,004 16 Sinjai 9 67 228,936 17 Soppeng 8 49 223,757 18 Takalar 9 76 269,171 19 Tana Toraja 19 112 221,795 20 Toraja Utara 21 111 215,400 21 Wajo 14 142 384,694 Primary data, 2021. Based on the village data, all districts in South Sulawesi Province. Barru Regency is the district with the least number of villages, as many as 40 villages, with a total population of 165,983 people. Meanwhile, Bone District has the largest number of villages, 328 villages, with a total population of 717,268 people. Each village receives a budget allocation sourced from the State Revenue and Expenditure Budget of IDR 1 billion per village. Each resident in Barru Regency as a district that has the least number of villages in South Sulawesi Province, is IDR 241 thousand per population. Meanwhile, Bone District, which is the district with the most number of villages, amounting to IDR 457 thousand per population, this result is from the allocation of village funds that are distributed annually to all villages.

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The contribution of village funds in providing economic growth in each district in South Sulawesi Province lies in the existing population by comparing the total population. Enrekang Regency is one of the districts that have a relatively high number of villages with a relatively small total population. So that when we compare the allocation of village funds with the total population, Enrekang Regency is able to contribute to each population of IDR 588 thousand per population. Based on the local revenue of South Sulawesi Province in 2020 amounting to IDR 10.7 trillion from 21 districts and 3 cities. In the analysis, the contribution of local revenue from village funds amounting to IDR 2255 billion has been contributed to supporting the economic growth of South Sulawesi Province. As a percentage, 47.4% of the contribution of village funds supports sustainable development growth in South Sulawesi Province, based on the rural economic sector.

6. CONCLUSION Village funds provide a very positive trend in reducing the poverty rate in rural areas. Village funds have succeeded in reducing the poverty rate in the village at the start of the pandemic by 0.03% between March 2019-2020. Since the time of the pandemic, the plantation/agriculture sector has contributed the largest share of original regional income for 2020. The rural economy grew higher than in urban areas during the Covid-19 pandemic. This cannot be separated from the effective contribution of village funds. The village-based economic recovery strategy during the pandemic period was effective enough to support sustainable regional-scale development leading to rural areas. These steps are food security, increasing the revitalization of BUMDes, digitizing the village economy, and making village cash labor-intensive. The transformation of the regional economy to improve the welfare of the community is carried out by transforming it from an agricultural commodity-based economy towards a downstream industry for processing agricultural and plantation products.

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http://iaeme.com/Home/journal/IJM 20 [email protected] Bahtiar Maddatuang, Abdul Syukur, Sofyan Hamid Indar and Abdul Karim

[20] Nur, M., Rosmawati., & Karim, A. (2020). Effect of Attendance Compensation and Satisfaction Againts Effectivity of Ferformance Employee at Regent Enrekang Office. International Journal of Scientific & Engineering Research Vol. 11(10), pp.129–132.

[21] Karim, A. (2020). Endemic Rice Pulu' Mandoti Supports the Economy and Food Security at Salukanan Community During Covid-19 Global Pandemic Crisis. International Journal of Innovative Science and Research Technology. Vol. 5(9), pp.793 – 796.

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