INNOVATIVE ECONOMIC EMPOWERMENT BASED ON VILLAGE POTENTIAL RESOURCES RESEARCH TEAM Pius Sugeng Prasetyo Tutik Rachmawati Theresia Gunawan Trisno Sakti Herwanto Albert Mangapul Parulian Lumban Tobing Yosefa Daniel Hermawan Dhia Kalila Mohamad Dida Fahryuda Innovative Economic Empowerment Based on Village Potential Resources Writer: Pius Sugeng Prasetyo, Theresia Gunawan, Tutik Rachmawati, et.al. Published by: Friedrich-Ebert-Stiftung (FES) Indonesia Office Jalan Kemang Selatan II No. 2 A | Jakarta 12730 Telepon : +62-21-7193711 Fax : +62-21-71791358 Email : [email protected] Website: www.fes.or.id Edition 1, Desember 2018 The authors of individual sections are solely responsible for the contents. Duplication. This book is protected by copyright and/or related rights. For other uses you need to obtain written permission from the publisher. Non-commercial uses TABLE OF CONTENTS Innovative Economic Empowerment TABLE OF CONTENTS ..................................................................................................... i Based on Village Potential Resources LIST OF FIGURES .............................................................................................................iv LIST OF TABLES ............................................................................................................. viii PREFACE ..................................................................................................................................x PREFACE ............................................................................................................................... xiii Writer: Pius Sugeng Prasetyo, Theresia Gunawan, PREFACE .................................................................................................................................xv Tutik Rachmawati, et.al. CHAPTER I Published by: NATURAL ENDOWMENT BASED VILLAGE ECONOMIC DEVELOPMENT: A Friedrich-Ebert-Stiftung (FES) Indonesia Office CASE STUDY OF TAJUN VILLAGE INDONESIA ..............................................................1 Jalan Kemang Selatan II No. 2 A | Jakarta 12730 Telepon : +62-21-7193711 A. Introduction and Profile of Tajun Village ............................................ 1 Fax : +62-21-71791358 B. Defining Factors for Village Economic Development ...................... 3 Email : [email protected] B.1. Natural Endowment of Tajun Village ...................................................3 Website: www.fes.or.id B.2. Leadership .......................................................................................................5 Edition 1, Desember 2018 B.3. Institutional Potential as Social Capital ..............................................8 B.4. Development Planning in Tajun Village ..............................................9 The authors of individual sections are solely responsible for the contents. Duplication. This book is protected by copyright and/or related rights. C. Innovation of Local Economy Development .....................................21 For other uses you need to obtain written permission from the publisher. C.1. Institutional Innovation: Village-Owned Enterprises and Village Microfinance ............................................................................................... 22 Non-commercial uses C.2. Product Innovation: Cloves as Mainstay in Tajun Village .......... 37 D. The Impact of Innovation in Tajun Village .........................................45 i INNOVATIVE ECONOMIC EMPOWERMENT BASED ON VILLAGE POTENTIAL RESOURCES CHAPTER II ECONOMIC POTENTIAL OF THE MOST WONDERFUL VILLAGE IN THE WORLD: NAGARI PARIANGAN VILLAGE ....................................................................... 47 A. Preface ..........................................................................................................47 B. Analysis of Economic Potential and Resources ...............................48 B.1. Tourist Potential in Nagari Pariangan ............................................... 48 B.2. Special Note for the Development of Potentials in Nagari Pariangan ..................................................................................................... 63 C. Opportunity of Tourism Potential ........................................................65 D. Conclusion...................................................................................................68 E. Suggestion ..................................................................................................70 CHAPTER III TOURISM VILLAGE OF TEMBI: THE INDEPENDENT COMMUNITY STRIVES IN THE MIDDLE OF POTENTIAL LIMITATION ..................................................................... 73 A. An Overview of History and Potentials in Tembi .............................73 A.1. A Brief History of Tembi .......................................................................... 73 A.2. The Village Potentials .............................................................................. 74 B. Innovation Form, Process and Impact in Pujon Kidul Village .....76 B.1. Village Innovation Form .......................................................................... 76 B.2. Process of Village Innovation ................................................................ 77 B.3. The Impact of Village Innovation ......................................................... 80 C. Driving Factors of the Village Innovation ..........................................81 D. Analysis of Production Process of Superior Products ....................82 D.1. The Governance of Homestay in Tembi Tourism Village ............. 82 D.2. The Process of Making Batik at Leksa Ganesha Batik Gallery ................................................................................................. 85 D.3. Supply Chain for the Handicraft Industry in Tembi Tourism Village ............................................................................................ 84 D.4. Supporting Tourism .................................................................................. 90 E. Conclusion and Suggestion ...................................................................92 ii CHAPTER IV PUJON KIDUL TOURISM VILLAGE: STORY OF SUCCESS OF AGRICULTURE AND LIVESTOCK REVITALIZATION TO REDUCE THE RATE OF URBANIZATION ....................................................................................................................... 95 A. An Overview of Pujon Kidul Village ...................................................95 B. Form, Process and Impact of Innovation in Pujon Kidul Village ..................................................................................96 B.1. The Form of Village Innovation ........................................................... 97 B.2. Innovation Process .................................................................................100 B.3. The Innovation Effect ............................................................................103 C. The Driving Factor of Village Innovation ....................................... 105 D. Analysis of The Production Process of Superior Products ....... 106 E. Conclusion .............................................................................................. 110 CHAPTER V BUILDING THE POWER OF VILLAGE ECONOMY BASED ON LOCAL POTENTIALS BORU KEDANG VILLAGE, WULANGGITANG SUB-DISTRICT, EAST FLORES REGENCY – NTT .......................................................................................113 A. General Description of Boru Kedang Village ............................... 113 B. Building and Developing the Village Economy Potential ........ 115 B.1. Village Owned Enterprise “Tanah Bojang” ..................................115 B.2. The Support for the Village Economic Development Supporting Network .............................................................................125 C. Learning from VOE Bersama Bangkit Mandiri, Nita Village – Nita Sub-District.................................................................................. 136 D. Conclusion ............................................................................................. 140 CLOSING NOTE .............................................................................................................144 REFERENCE .....................................................................................................................147 iii INNOVATIVE ECONOMIC EMPOWERMENT BASED ON VILLAGE POTENTIAL RESOURCES LIST OF FIGURES Figure 1.1. Dynamic Model of Village Innovation Development Model in Manifesting Smart and Sustainable Village...............................................................21 Figure 1.2. Analysis of Market System Development Business Unit for Water Supply Management ............................................................................................................. 25 Figure 1.3. Analysis of Market System Development ................................................. 26 Figure 1.4. The Fermented Organic Waste & A Sieving Tool .................................. 27 Figure 1.5. Piles of Sorted Plastic Waste (a) and Organic Fertilizer (b) ............. 27 Figure 1.6. Management Structure of MGA Tajun Village-Owned Enterprise .................................................................................................................................... 28 Figure 1.7. Analysis of Market System Development of VOE Mandala Giri Amertha........................................................................................................................................ 30 Figure 1.8. Financial