Abstract

Center for Economic Democracy Studies, Universitas Gadjah Mada

Table of Contents

Economic Democracy and Participatory Rural Appraisal Approach

Rindu Sanubari Mashita Firdaus

Researcher of Center for Economic Democracy Studies Universitas Gadjah Mada.

Economic democracy or local economy is clearly stated in Indonesia’s constitution, in Article 33 of the 1945 Constitution. Three substances describe economic democracy: first, the involvement of all levels of society in the production process as a guarantee that the state utilizes potential national resources; second, the involvement of all levels of society to enjoy the results of national production, including the poor and neglected children; third, leadership and ownership of community members in the production and distribution. In economic democracy, society is a subject therefore it must be placed as the organizer of the economy where the people act as the holder and the controller. Society is the main actor in economic democracy so that all studies related to economic democracy use the participatory rural appraisal approach as the main methodological approach. 

Cooperative and Local Cultural-Based Market Management Model

Rindu Sanubari Mashita Firdaus, Samodra Wibawa, Dumairy, Laksmi Savitri, Ari Hernawan, Hempry Suyatna, Awan Santosa, Puthut Indroyono, Istianto Ari Wibowo

Researchers of Center for Economic Democracy Studies Universitas Gadjah Mada.

The assessment presents the way to manage the traditional market which generally has two management model options between state-centralized or private profit-oriented. We offer a cooperative and local cultural-based market management model as the third option where the market members, especially traders, hold the roles as the actors in market management. The initial model was compiled in 2013 and developed in 2018. Study conducted in 2018 in Sumatera Barat and Yogyakarta, we found that actually cooperative and local cultural-based market management model where the market’s members act as as the actors in market management was the initial form of traditional market in Indonesia. The principle of cooperative-based resource management is the pulse of community culture.

There are three dimensions of cooperative and local culture-based market management model: intellectual or human resources, the institutional, and the material dimension. The intellectual dimension is the entry point of initiation of the cooperative-based market management model by creating knowledgeable market members with managerial abilities in the future. The second dimension is the institutional dimension where the market’s members must upgrade their knowledge by starting joint work with cooperatives, conducting regular forums, formulating mutual rules for all members, and so on. The last dimension is the material dimension where all market’s members manage and control the market’s facilities, such as water, electricity, parking lots, etc.

 

Inter-Instituional Integration in Rural Economic Zone Development: Kawasan Bukit Menoreh, Kulonprogo

Catur Sugiyanto, Puthut Indroyono, Arif Setyo Widodo

Researchers of Center for Economic Democracy Studies Universitas Gadjah Mada.

The assessment presents the way to manage the traditional market which generally has two management model options between state-centralized or private profit-oriented. We offer a cooperative and local cultural-based market management model as the third option where the market members, especially traders, hold the roles as the actors in market management. The initial model was compiled in 2013 and developed in 2018. Study conducted in 2018 in Sumatera Barat and Yogyakarta, we found that actually cooperative and local cultural-based market management model where the market’s members act as as the actors in market management was the initial form of traditional market in Indonesia. The principle of cooperative-based resource management is the pulse of community culture.

There are three dimensions of cooperative and local culture-based market management model: intellectual or human resources, the institutional, and the material dimension. The intellectual dimension is the entry point of initiation of the cooperative-based market management model by creating knowledgeable market members with managerial abilities in the future. The second dimension is the institutional dimension where the market’s members must upgrade their knowledge by starting joint work with cooperatives, conducting regular forums, formulating mutual rules for all members, and so on. The last dimension is the material dimension where all market’s members manage and control the market’s facilities, such as water, electricity, parking lots, etc.

 

Incubator Model Based on Economic Democracy for of Green Enterprise in Rural Areas

Rindu Sanubari Mashita Firdaus, San Afri Awang, Dewi Kusumawardhani, Awan Santosa, Puthut Indroyono, Istianto Ari Wibowo, Hempri Suyatna, Suwartanti, Dumairy

Researchers of Center for Economic Democracy Studies Universitas Gadjah Mada.

The assessment offers an incubator model based on economic democracy for green enterprises in rural areas. Natural resources drives human to achieve a certain level of prosperity and at the same time it comes with the responsibility to save the environment for the the future generation. Therefore, this study offers an incubator model called green entrepreneurship that harmonize the nature and human interest over resource. This study was conducted in Nglanggeran Village, Yogyakarta. A major change was made in the collaboration between residents in managing a nature-based business such as agriculture, plantation, and forest. Tourism Awareness Community (Kelompok Sadar Wisata) and Youth Community (Karang Taruna) as driving forces of green entrepreneurship have abilities to adapt and adopt activities that involving parties from outside their community.  They had to deal with numerous obstacles but the synergy among parties succeeded developing ecotourism and local economics.

There are three dimensions of green entrepreneurship in rural are (1) green entrepreneurship, (2) green institution, and (3) green business. Green entrepreneurship was learned in the Green School (Sekolah Hijau), which consists of curriculum, meetings, practices, teachers, and green cadre. The green institution was activated through local organizations such as the tourism awareness community (Pokdarwis), Cooperatives, and BUMDES (Village Owned Enterprises) that stick to local wisdom consisting of socio-cultural values, green knowledge, and networking between government, companies, and universities. The last is the green business dimension that carries out the financing, production technology, marketing, information technology, management, and environmental engineering as the basis of green entrepreneurship. 

 

Institutional and Capabilities Reconstruction of Dairy Farmers’ Group in Pacitan Regency, East Java, in Order to Increase The Resilience of Local Economy Based on Economic Democracy in Rural Areas

Ambar Pertiwiningrum, Margaretha Arnita Wuri

Researchers of Center for Economic Democracy Studies Universitas Gadjah Mada.

The assessment is about green entrepreneurship for dairy farmers’ groups in Pacitan Regency through collaboration between members of the dairy farmers’ groups. The economic democracy principal mentions that one progress cannot leave the others behind so that collaboration with all parties becomes the main element or important key to increase local economic development. In this study, the researchers found that the potential of dairy farming and agriculture, especially herbal plants, in Gemaharjo and Tahunan Villages in Pacitan Regency become capital resources to implement integrated farming in a circular economy framework that refers to economic, environmental, and social sustainability. Increased new agricultural business, income and collaboration networks are the indication of circular economy in integrated farming that provides opportunities for local economic growth. The sustainability key of green entrepreneurship is good institutional management that develops through institutional reconstruction and multi-stakeholders collaboration.

Democracy Model in Developing Competitive and Sustainable of Coffee Agribusiness in West Lampung

Dumairy, Any Suryantini, Puthut Indroyono, Rindu Sanubari Mashita Firdaus, Istianto Ari Wibowo, Tondy Ddwi Mulya Rahman, Arif Setyo Widodo

Researchers of Center for Economic Democracy Studies Universitas Gadjah Mada.

This study was conducted in Liwa, West Lampung, Lampung Regency that aimed to find a competitive and sustainable coffee agribusiness as the main commodity in West Lampung. Coffee plantations in West Lampung has been dependent for a long time on natural condition which has caused several environmental problems. Moreover, the competitiveness of its product has not yet reached the ideal point. Therefore, this study tries to present economic democracy to build competitive and sustainable coffee business model. There are medium and long-term strategies that are made based on a time period. Here are several stages that should be implemented to develop a competitive and sustainable coffee agribusiness:

1. Establishment of Community Learning Center (CLC) in every district.

2. Initiation program in the first year, the establishment of “training for trainer” for coffee agribusiness cadre in five sub-districts who are expected to form tourism awareness community (Pokdarwis) to develop collective business startups in every sub-district.

3. Local government need to prepare a working group which consist of related agencies such as Plantation Agency, Agriculture Agency, Women’s Empowerment Agency, Communication and Informatics Agency, and Regional Development Agency, including utilizing existing institutions such as Musyawarah Antar Desa (Villages’ Discussion) that will conduct a regular meeting to monitor the progress of the program.

4. Medium-term strategy in institutional aspect the West Lampung Coffee Agribusiness Collaboration and Participation Forum can be established.

Strategy to Develop A Competitive and Sustainable Coffee Agribusiness

Dumairy, Anny Suryantini, Istianto Ari Wibowo, Puthut Indroyono, Rindu Sanubari Mashita Firdaus, Tondy Dwi Mulya Rahman

Researchers of Center for Economic Democracy Studies Universitas Gadjah Mada.

There are three dimensions that underlie the strategy to develop a competitive and sustainable coffee agribusiness: (1) human resources, (2) institutional, and (3) material. The strategy contains six principles: (1) good agricultural practices (GAP), (2) good manufacturing practices (GMP), (3) Community Participation, (4) Cooperatives, (5) Increasing Women Role, (6) Education, and (7) Local Wisdom. 

The implementation of the strategy to develop a competitive and sustainable coffee agribusiness in West Lampung has been done through: 

1. Establishment of Community Learning Center (CLC) in every district

2. Initiation program in the first year, the establishment of “training for trainer” for coffee agribusiness cadre in five sub-districts who are expected to be able to form tourism awareness community (Pokdarwis) to develop collective business startups in every sub-district

3. Local government need to prepare a working group which consist of related agencies such as Plantation Agency, Agriculture Agency, Women’s Empowerment Agency, Communication and Informatics Agency, and Regional Development Agency, included utilizing existing institutions such as Musyawarah Antar Desa (Villages’ Discussion) that will conduct a regular meeting to the monitor progress of this program and synchronize with the existing program.

4. Medium term strategy in institutional aspect the West Lampung Coffee Agribusiness Collaboration and Participation Forum can be established.

 

Renewable Energy for Developing Rural Business

Rachmawan Budiarto, Ambar Pertiwiningrum, Rajib Arruzi, Fitrotun Aliyah, dan Dwi Novitasari

Researchers of Center for Economic Democracy Studies Universitas Gadjah Mada.

This study assessed renewable energy potential as a driving force in rural business growth aimed to decrease high dependency on fossil fuel energy. Consumption of fossil fuel energy lead to the systemic challenge such as climate change due to a significant increase in greenhouse gas emissions. This massively triggers various impacts in the increase of temperature, melting rate of polar ice, sea levels, extreme weather, and multidisciplinary problems. The supply of fossil fuel energy is increasingly vulnerable due to its limited quantity which results in fluctuate prices. Considering that renewable energy can be optimally utilized to replace the dominance of fossil energy needs serious attention. This includes efforts to increase the electrification ratio and energy supply in rural areas in Indonesia. Renewable energy needs to play a significant role in this case.

There are several criteria and objectives for the utilization of renewable energy. From this study, the objectives of the utilization of renewable energy can be divided into five: (1) increasing energy supply, (2) diversifying energy sources, (3) increasing rural community productivity, (4) increasing job opportunities, and (5) creating affordable renewable energy for prosperity and sustainability.

 

School of Traditional Market (Sekolah Pasar Rakyat)

Istianto Ari Wibowo, Rindu Sanubari Mashita Firdaus, Awan Santosa, Puthut Indroyono

Researchers of Center for Economic Democracy Studies Universitas Gadjah Mada.

Many people forget the human side of traders. Human capital needs to be the main capital in business, including the business of traders in traditional markets. However, traders often complain about their business having problems with financial capital. Excessive dependence on financial institutions has neglected human capital and social capital which should be prioritized.

School of Traditional Market has several important points such as:

1. Human resources are the key factor in developing traditional market

2. Efforts to increase the capacity of human resources use an approach that prioritizes full acceptance from the community

3. The development of the traditional market is not an activity that can be carried out sporadically and partially. It takes a roadmap, strong and long-term commitment from the government’s involvement.

Green School: Alternative Model in Rural People Empowerment

Dumairy, Rajib Khafif Arruzzi, Satriyantono Hidayat

Researchers of Center for Economic Democracy Studies Universitas Gadjah Mada.

Green school is a mentoring activity for community that integrates community’ small business in rural areas with the environmental health issues. There are three aspects that must be considered in the implementation of Green School. First, starting point to build a community does not always start from zero but also it can start from a negative or minus state. For example, if the green school cannot convince the community in rural area to take action in the green school, it will be hampered. So, an extra effort or work is required to change the negative condition to a zero state. Second, the key figures in the green school concept and similar programs with community development theme should be expanded. The last, preconditioning several residents who will be the targets in this program to prepare capacity building of human resources. The part of community that does not involve directly in this program must be convinced that the program will not disturb their establishment. They should be ensured that the program is actually beneficial for them.

Labor School

Rindu Sanubari Mashita Firdaus

Researcher of Center for Economic Democracy Studies Universitas Gadjah Mada

Labor school is a capacity building assistance program for labor force. The objective of the program is to complete the triangular economic democracy (intellectual dimension: strengthening human resources; institutional dimension: strengthening cooperation and organization; and material dimension: strengthening control and management of productive resources). The labor school emphasizes on intellectual dimension of economic democracy by strengthening human resources’ capacity. In the economic democracy, capacity building aims to increase ability of laborers to manage their own business, either individually or in groups/cooperation. This is different from the other company’s goal in general that capacity building aims to increase the company’s profit and performance.

The initial initiation was carried out on informal workers at the household level or domestic workers. Domestic workers became the trial target in this project due to its attention and attractive issue. The experiment was carried out for domestic workers or laborers, especially women who were also responsible for double jobs as housewives. They are generally the most financially vulnerable. 

Through Labor School, hereinafter referred to as Trini Karya, is able to provide additional income for its members and even expand their own business. On Trini Karya’s journey, it is not easy to get satisfying results. However, principally and institutionally, this business is owned by all members and driven independently. The Labor School in Trini Karya is revealed by Mohammad Hatta’s statement that the cooperatives are a big work that cannot be finished with slogans or ideas but also with execution and hard work.

 

Implementation of Indonesian Migrant’s Education House through Assistance Program in Lombok Timur Regency

Ambar Pertiwiningrum dan Teguh Ari Prabowo

Researcher of Center for Economic Democracy Studies Universitas Gadjah Mada

East Lombok or Lombok Timur is one of the regencies in Indonesia that sends the most migrant workers aboard. Unfortunately, most of them did not have enough savings from their salary when they were no longer working as migrant workers. This problem was caused by the lack of technical assistance for migrant workers before and after their contract. A good of remittances will have a significant impact on the welfare of Indonesian migrant workers to open job opportunities. Therefore, they need capacity building program, especially about entrepreneurship, so that after working as a migrant worker they can take advantage of their hard work by establishing their own business. This study found that most of former migrant workers have the potential to be entrepreneurs as long as they get technical assistance that is managed by the local government adapted to the local potential of their origin. In addition, it requires an integrated migrant workers database with a funding allocation of assistance for each village in Lombok Timur.

 

Women Empowerment through Milk School Program for Productive Economic Development: Study Case in Gemaharjo Village, Pacitan Regency

Ambar Pertiwiningrum, Margaretha Arnita Wuri dan Teguh Ari Prabowo

Researcher of Center for Economic Democracy Studies Universitas Gadjah Mada

Milk School Program is a women empowerment program, specially designed for diary farmers’ wives to maintain productive resources management. Milk School Program emphasizes the intellectual dimension through capacity building of the diary farmers’ wives to manage their assets. Gender mainstreaming in this activity is important to provide opportunities for women to actively participate increasing the local economy.

The initiation program has been carried out since 2018 involving women participation in developing dairy product innovation, as an early step to increase the economic value of the products. Women empowerment was carried out by sharing knowledge and technology for processing the dairy product, marketing and strengthening women’s institutions.

Economic Democracy Measuring Index of Indonesia: Case Series in Penajam Paser Utara and Bantul Districts

Puthut Indroyono, Awan Santoso, Istianto Ari Wibowo

Researcher of Center for Economic Democracy Studies Universitas Gadjah Mada

The problem of economic democracy up to now is that there are no specific and measurable economic variables that have been agreed upon and set as indicators for the implementation of democratic economic system / participatory economy at both the central and regional levels. Therefore, there is no comprehensive indicator that can be used as a reference for the implementation and assessment of the degree of its in each region in Indonesia. Second, Economic democracy is still limited to a philosophical, normative, and political concept. The unavailability of official measures makes democratic agendas both at the national and regional levels too abstract and do not have a clear direction. Third, the implementation of an economic democracy still depends on the views and understanding of development planners, policy makers, and potential leaders who will compete in the general election every five years.

The measurement of the economic democracy index in the two districts of Penajam Paser Utara and Bantul is expected to contribute to other regions in Indonesia in encouraging the improvement of strategy and programs that more people-centered-oriented in the future.

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