1. Introduction
Contained in the report of the United Nations Development Program with ASEAN and China, on Financing Sustainable Development, an estimated 36 million people in Southeast Asia still live below the poverty line, of which 90 percent live in Indonesia and the Philippines (Cengiz et al., 2017). Poverty in Indonesia is influenced by uneven income and poverty dominated by rural and coastal areas (Cuesta, Madrigal, & Skoufias, 2018). Poverty in Indonesia and around the world focuses on rural areas. As the World Bank notes, three quarters of the world's poor are farmers in rural areas (Clemens & Kremer, 2016). This statistic reflects three out of five people, who live in rural areas where agriculture is the main job.
Poverty in rural areas in developing countries is exacerbated by natural disasters. Both concepts are connected by damage caused by natural disasters which damage infrastructure including sanitation, electricity and water facilities (Sawada & Takasaki, 2017). Many of the farmers are women who are also responsible for household duties and can be revoked from making the same decisions and wages (Park & White, 2017).
One of the efforts to empower the community to reduce poverty that is being implemented is the concept of community empowerment with the establishment of a tourist village (Tolkach & King, 2015). Tourism villages can be one way to alleviate poverty, reduce unemployment, reduce inequality and create jobs (Cahyono & Putra, 2017). Because by building a tourist village, it will help to create an independent village, and make the opportunity to the village economy in a better direction (Xu, Huang, & Zhang, 2018).
One district in Indonesia that makes tourism as a leading sector is Lumajang district (Balthazar et al., 2016). Through the Lumajang Regent Regulation Number 79 of 2014 regulates the program of one sub-district of a tourist village in Lumajang district. In 2018 80 tourist destinations have been identified and 37 of them are ready to be marketed. This policy and direction of development efforts to the tourism sector, carried out to create regional competitiveness, attract investors and the long term must provide socio-economic benefits to the wider community (Balthazar et al., 2016). There is the dependence of Lumajang district community objectively on natural use (Hakim & Soemarno, 2017). Their life needs are supported by the availability of natural resources, especially in the agricultural sector.
Through the community economic empowerment program Lumajang district based on superior commodities is expected to improve economic resilience. For this reason, development planning is needed that can be used as a guide in formulating integrated development strategies, especially regarding strategies to improve the economic resilience of rural tourism communities (Veselovsky et al., 2015). This study was designed to be able to identify the economic problems of the Lumajang district community and develop the economic potential of the community based on superior commodities to improve economic resilience as an effort to alleviate poverty in rural communities through community empowerment.
2. Theoretical background and literature review
Community empowerment is a concept of economic development that summarizes social values. This concept reflects the new paradigm of development, namely those who are people-centered, participatory, empowering, and sustainable (Boley et al., 2014). The concept of human empowerment is the subject of itself. The empowerment process that emphasizes the process of giving people the ability to be empowered, encourage or motivate individuals to have the ability or empowerment to determine their life choices (Steiner, 2016). Empowerment must be aimed at the groups or layers of lagging society. Conceptually, community empowerment is an effort to improve the dignity of the layers of society who are now unable to escape the poverty trap and underdevelopment (Scheyvens, 1999).
Community empowerment carried out is economic empowerment. Economic empowerment is intended as an effort to improve the ability of individuals as the guarantor of negative impacts of growth, bearers of development burden, and sufferers of environmental damage (Kabeer, 2012). The aim of community economic empowerment is to increase the capacity and performance of self-help groups in technical and management skills to improve productivity and income in society (Edwards, 2015).
3. Research methods
This study uses multi-methods analysis that provides a comprehensive picture to answer the problems in research.
3.1. Investigative Research Method
The main problem faced by developing countries is the development of income inequality, poverty, widening gaps between developed countries and developing countries (Merchant, Kumar, & Mallik, 2017). The implementation of community economic empowerment in many countries including in Indonesia places too much emphasis on the importance of the role of natural capital and modern economic capital such as man-made capital goods, technology and management, and often ignores the importance of social capital such as local institutions, local wisdom, local norms and customs (Jorgensen, 2015). The strategy answers the problem of social orientation conditions for commodities in the traditional economic sector in terms of technology utilization (Singla, Sethi, & Ahuja, 2018). The researcher Investigation methods try to enter local social conditions through observation and participation in their lives (Walsham, 2002).
3.2. Data analysis method
The analysis method in this study was carried out using several analytical methods, namely:
3.2.1. Location Quotient (LQ)
Location Quotient (LQ) is an analytical tool to determine whether there is an area specialization for a particular sector (Slaper, Harmon, & Rubin, 2018). LQ analysis is intended to look at sectors thatare the base sector and the non-base sector, so that the regions see the advantages of sectors that can be sold and developed to drive the economy in the region or district (Andayani & Miftahuddin, 2018). The base sector is activities that export goods and services outside the economic boundaries of the region concerned (Gunawan, Cahyono, & Santoso, 2018). While non-base sectors are activities that provide goods and services to meet the needs of people who live within the economic boundaries of the region (Slaper, Harmon, & Rubin, 2018).
LQ = (Eij / Ej) / (Ein / En)
Information :
Eij = Job opportunities in sector i in the region j
Ej = Job opportunities in the region j
Ein = Job opportunities in sector i in the country n
En = Job opportunities in the country n
From the formula, the calculation results are obtained with the following classification:
• If the LQ value is > 1, then j area for sector i has specialization
• If the value of LQ = 1, then the j > area for sector i has specialization
• If the LQ value is < 1, then area j for sector i has no specialization
This method is a calculation of the relative ratio of added value of a sector in an area to the value added contribution of the sector concerned at a provincial ornational scale so that it can be known which commodities are prospects to be developed (Wahyudi, 2017). The unit that is used as a measure to produce the LQ coefficient can use units of the amount of labor, or production, or other units that can be used as criteria. The more basic sectors in an area will increase revenue flows to the region, increase demand for goods and services in them and generate non-base sector volumes. In other words, the base sector is directly related to external demand, while the non-base sector relates indirectly, namely through the base sector first (Khuong & Nhu, 2015).
3.2.2. SWOT analysis
SWOT analysis is the identification of various factors systematically based on logic that can maximize strenghts and opportunities, but simultaneously can minimize Weaknesses and Threats (Phadermrod, Crowder, & Wills, 2016). SWOT analysis is used in identifying various factors systematically to formulate strategies or policies in an economic sector. The process of strategic decision making is related to the development of mission, goals, strategies and policies (Abdel-Basset, Mohamed, & Smarandache, 2018). Thus strategic planning by analyzing the strategic factors that are owned in the current conditions makes SWOT analysis known as analysis the situation both internally and externally.
The advantages of SWOT analysis are simple, collaborative, flexible and integrative. SWOT analysis is easy to understand, participatory, it can be used for any size of organization, and even be used for your self. The existence of internal and external factors with their positive and negative sides also resulted in the SWOT instrument being quite complete and comprehensive (Shabanova et al., 2015).
3.2.3. Analysis of community economic empowerment
The approach used in the analysis of community economic empowerment is to examine the state of the economy in a participatory manner to participate in improving and analyzing their knowledge about their own lives and conditions so that they can make plans and actions (Ottomano et al., 2016). Another approach in participatory community economic empowerment analysis is participatory learning methods that emphasize the participatory learning process of rural communities in facing economic problems and challenges (Slee, 2015). Identify problems and formulate strategies in problem solving based on the community participation process.
4. Research result
4.1. Location Quotient Base Analysis
Location Quotient (LQ) is an analytical tool to determine whether there is an area specialization for a particular sector. LQ analysis is intended to look at sectors that are the base sector and the non-base sector, so that the region sees the advantages of the sector that can be sold and developed to drive the economy in the region.
This method calculates the relative ratio of added value / production value of a sector in an area to the value added / value ofproduction of the sector concerned at the provincial or national scale so that the prospect and not commodity can be known. Units that are used as a measure to produce LQ coefficients can use units of the amount of labor, or production, or other units that can be used as the following criteria:
4.1.1. Sector and Base of Regional Revenue Sub-Sector (GRDP)
Calculation of base value (dynamic LQ and static LQ) showed that the base sector in Lumajang district is the Agriculture sector. The Agriculture Sector wasthe base sector with the predicate of Excellence for the last five years in 2013 to 2017. The agricultural sector is the flagship in Lumajang Regency, because this area has vast and fertile agricultural land with abundant water content. In addition, some of the area is the Semeru mountainous area which is suitable for agricultural development other than rice such as fruits, vegetables, horticulture, or other sub-sectors such as livestock.
4.1.2. Food Crop Commodity Base Sub-Sector
The results of the calculation of the average LQ in the period of 5 years from 2013-2017 in Lumajang District note that of 72 food crop commodities there were41 commodities that fall into the category of superior commodities (75.6%), and the rest were categorized as non-superior commodities (24.4%). If it was ranked according to the highest LQ value then zalacca was the most superior commodity (highest of the others) hereinafter was papaya, cucumber, watermelon, and banana. So that it can be said that these commodities were commodities that play a major role in the economy of the community in terms of the food crops sub-sector in Lumajang District rather than in East Java Province.
4.1.3. Plantation Commodity Base Sub-Sector
The results of the calculation of the average LQ withina period of 5 years from 2013-2017 in Lumajang District revealed that of the 7 commodities there were 4 plantation commodities which were categorized as superior commodities (75%), and the rest were categorized as non-superior commodities (25%). If it is ranked according to the highest LQ value, arabica coffee is the most superior commodity (highest of the others), hereinafter is papaya, coconut, clove, and tobacco. So that it can be said that these commodities werevery important for the economy of the community in terms of the plantation sub-sector in Lumajang District rather than in East Java Province. Livestock Commodity Sub-Sector.
The results of the calculation of the average LQ within a period of 5 years from 2013-2017 in Lumajang District revealed that of the 12 commodities, the whole was categorized as non-superior commodity (100%). If it was ranked according tothe highest LQ value, buffalo was the highest non-superior commodity and the next werehorses, ducks, pigs, beef cattle. So it can be said that these commodities were commodities that did not contribute to the economy of the community in terms of the livestock sub-sector in Lumajang District than in East Java Province.
4.1.4. Fisheries Commodity Base Sub-Sector
The results of the calculation of theaverage LQ in the period of 5 years from 2013-2017 in Lumajang District revealed that of the 4 fishery commodities there were 3 commodities that were categorized as superior commodities (75%), and the rest were categorized as non-superior commodities (25%). If it is ranked according to the highest LQ value, the pond is the most superior commodity (highest of the others), next is the pond, and sea culture. So that it can be said that these commodities were very important for the economy of the community in terms of the fisheries sub-sector in Lumajang Regency rather than in East Java Province.
4.1.5. Forestry Commodity Base Sub-Sector
The results of the calculation of the average LQ within a period of 5 years from 2013-2017 in Lumajang District revealed that out of 10 forestry commodities, the whole was categorized as non-superior commodity (100%). If it is ranked according to the highest LQ value, Sengon was the highest non-superior commodity and the next were damar, mahogany, mixed jungle, and sono. So that it can be said that these commodities didnot contribute to the economy of the community in terms of the forestry sub-sector in Lumajang District than in East Java Province.
4.2. Analysis Based on SWOT
The formulation of development strategies and empowerment of rural tourism based on superior commodities to realize economic resilience is carried out in three stages of implementation. The stage includes; (a) data collection and management, (b) data analysis phase related to superior products in Lumajang regency, (c) the stage of developing strategies based on internal and external evaluation of the sector and then the direction of the empowerment program will be carried out.
4.2.1. Sub-Sector Development Strategy
Then in more detail was done a SWOT sub-sector analysis of agriculture on the leading sectors and general strategy recommendations that can be done by the region in the framework of developing and empowering the community, especially the regional superior sub-sector for regional food security that covers sub-sectors in the agricultural sector (Table 1):
Table 1: Lumajang District Food Crop SWOT Matrix
4.3. Policy Program
Based on the analysis, document review and field survey, it can be concluded that the leading sub-sector that gives the highest contribution is the food crop sector. Based on the strategy and policy direction that can be formulated, the development program that can be carried out by Lumajang District Government is related to improvement and empowerment of superior commodity-based rural communities to realize economic resilience. It needsto identify economic problems faced, development prospects and constraints faced in the development program of economic potential or superior products of tourism villages in Lumajang Regency (Table 2). Problems and solutions for development in the economic sector of Lumajang Regency community in the food crop sector:
Table 2: Community Development Program
In connection with the increase in Value added program, superior products in rural communities are developing business models currently based on social entrepreneurship. Social business, which is a pro-profit business entity that focuses on social missions (Kim & Youn, 2015). The main focus of activities is to make a profit, but the main goal is not to maximize financial returns for capital providers but to provide financial benefits to low-income groups and grow social enterprises by reinvesting. This effort aims to foster social value and the emotional value felt by consumers has a positive impact on product loyalty (Yang & Kim, 2018). The social business model will become a pattern for doing social entrepreneurship in Lumajang Regency. The subjects and objects of this activity are the people who are in tourist villages in Lumajang Regency.
Implementation of a program to increase value added of superior products with skill enhancement training in the manufacture of salak and banana based derivative products. The activities carried out are:
a) Counseling about social entrepreneurship in the community aims to be able to utilize social groups to become organizations that can generate profits so that they can be used properly. Communities can be motivated to use the latest technology through increasing their awareness of the importance and survival of each (Ahmed et al., 2016).
b) Socialization of social entrepreneurship programs in the community.
c) Providing assistance to the zalacca plantation communities for the implementation of social entrepreneurship programs. The Lumajang community with most of the livelihoods in the agrarian sector usually has certain characteristics, namely patience, accepting what they are, and tend to work with a short-term mindset (working to meet the needs of one's own family). These characters have an unfavorable impact, which is easily deceived by others and a less competitive climate emerges. So that the abundant agricultural and plantation yields cannot be enjoyed optimally by the community as the owner of natural resources.
d) Mentoring activities need to be established by organizations or communities in the community according to their work base (Yim, 2017). If they make a living as farmers, then they join the farmers' organization (Zulauf, Rhew, & Kim, 2016). This social business model with other businesses trying to get profit. However, these profits are not returned entirely to investors, but are managed to help the operationalization of other activities that are purely social activities.
e) Counseling about the role of women in the public sector is carried out with the aim of increasing awareness of women that the role of women is not merely as a housewife, but can also help the family economy by participating in seeking additional income (Yoo, Huh, & Han, 2017). This counseling is carried out by providing counseling to associations in the neighborhood which are often held every week.
f) Counseling about family economic arrangements that aim to increase knowledge to families on how to manage a good and more efficient family economy (Yoo, Huh, & Han, 2017). This counseling is also carried out at the mothers' forum held every week.
g) The current condition of the global economy is the formation of competitive human capital is one of the most important goals in modern economic development (Chulanova, 2017). Community economic empowerment becomes important especially in shaping the improvement of the economic quality of rural communities.
5. Conclusion
5.1. Summary of Results and Implications
Tourism village is one form of empowerment of farmer communities in order to increase their agricultural income through supportive community economic empowerment programs. Lumajang District has an agricultural area and at the same time as a nature-based tourism area that supports it. With the tourism village, the community can participate in order to succeed the tourism village program. This is also due to changes in attitudes that exist with the development of tourist villages. The existence of behavior that affects the community in this regard is seen from the increase in people's income along with the development of tourist villages.
Implementation of a program to increase value added of superior products with skill enhancement training in the manufacture of salak and banana based derivative products. The existing tourism village program in Lumajang district can be used as one of the references for the upcoming tourism village program.
5.2. Limitations and future studies
The product of village tourism development and superior commodity-based community empowerment needs to be assessed both from the expert team and from the training participants. The assessment from the expert team and the training participants was included in the good assessment, but there are still many aspects that need to be developed. There is a suggestion from the developer to develop further namely it is necessary to develop more complex material so that participants gain good knowledge. The involvement of the government and the private sector is needed in an effort to empower the community economy.
Cited by
- Optimization of superior banana product diversification: empowerment of poor communities vol.243, pp.None, 2018, https://doi.org/10.1088/1755-1315/243/1/012089
- Empowerment Model for Sustainable Tourism Village in an Emerging Country vol.7, pp.2, 2018, https://doi.org/10.13106/jafeb.2020.vol7.no2.261
- The community empowerment program based on local potential through tourism village vol.485, pp.None, 2018, https://doi.org/10.1088/1755-1315/485/1/012089