Community Poverty Reduction Strategies through a Village-owned

Enterprise in Kampung Belakang Village, West Aceh Regency

Afrizal Tjoetra, Irsadi Aristora, Sudarman and Nodi Marefanda

Universitas Teuku Umar, Meulaboh, Indonesia

Keywords: Village, Community, Poverty Alleviation, and BUMG.

Abstract: Gampong (village) or other names has a number of limitations, which include human resources, capital, and

low-volume sustainably products. It is unfortunate referring thatvillage communityhas an authority and

opportunity to grow and developtheirpotential. Besides, village community also has a greater social capital

to create change through development. The aim of this study was to identify the strategies of the Kampung

Belakang Village government in alleviating poverty through Village-Owned Enterprises (BUMG).This

study used a qualitative method with a descriptive approach. The data collection techniques were performed

using observations, interviews, focus group discussions, and documentation. The results of this study

showed the strategies of the village officers inalleviating poverty, namely: 1) identification to potential and

opportunities of village enterprise in cooperation with the village officers, 2) announcement of village

officers about programs carried out in the village, 3) conducting development planning sessions involving

all village stakeholders and community, 4) program implementation by involving the villagers as workers,

5) carrying out continuous supervision for implemented programs.

1 INTRODUCTION

Poverty is often associated with villages. Villages

are attached to various limitations, including the

limitations of human resources, capital, and the low

level of business products that are produced in a

sustainable manner. This fact, inreality, should not

be a problem referring that the village community

has the authority and opportunity to grow and

develop their potential. In addition, the village

community also has greater social capital to create

changes through development.

Gampong is a term from the Acehnese language

which means village. The existence of a village is

mentioned in the Law of the Republic of Indonesia

Number 6 of 2014 concerning Villages, stating that

"Village shall be village and traditional village or as

referred to by other names, hereinafter referred to as

Village, shall be a unit of community that has

boundaries with the authority to regulate and

manage the affairs of government, interests of the

local communities based on the community’s

initiatives, right of origin, and/or traditional rights

recognized and respected in the system of

government of the Republic of Indonesia". On the

other hand, (Anggraeni, 2016)states that as a state

representative, each village is obliged to carry out

development in both physical and human resources,

as an effort to improve the quality of life that can be

optimally utilized for the welfare of the

community.Efforts that can be made by the

gampong government are creating and encouraging

the development of the gampong’s economy through

entrepreneurship in order to be able to realize a

prosperous society through development and

economic prosperity (Ansari, 2013).

The entrepreneurship mentioned can be

accommodated in the Village Owned Enterprises

(BUMD) or the Gampong Owned Enterprises

(BUMG) developed by the government and the

community (Anggraeni, 2016).

The government of West Aceh Regency has

established a BUMG in each village starting from

2015, including in Kampung Belakang Village.

Based on the gampong’s profiles and observations, it

is known that Kampung Belakang has a population

of 1,448 people, with an age composition dominated

by elderlies of 798 people, 284 adults, 305 children

and 61 under-fives. The number of unemployed in

Kampung Belakang reaches 9.94% of the

population. This means that there is still a lot of

unemployment that occurs in the village so that it

356

Tjoetra, A., Aristora, I., Sudarman, . and Marefanda, N.

Community Poverty Reduction Strategies through a Village-owned Enterprise in Kampung Belakang Village, West Aceh Regency.

DOI: 10.5220/0010033503560359

In Proceedings of the 3rd International Conference on Social and Political Development (ICOSOP 3 2019) - Social Engineering Governance for the People, Technology and Infrastructure in

Revolution Industry 4.0, pages 356-359

ISBN: 978-989-758-472-5

needs a strategy to reduce that number as well as to

realize the poverty alleviation.

Kampung Belakang Village has undergone a

development through various types of businesses

managed by BUMG. Since 2017 until now, the

BUMG of Kampung Belakang has created jobs for

the village community with wages given following

the standard of Minimum Wage of West Aceh

Regency. The types of businesses developed by the

BUMG of Kampung Belakang consist of: Savings

and Loans Unit, Paving Block and Brick Block

Business Unit, Kabel Sejahtera 3R (Reduce, Reuse,

and Recycle) Waste Dump Site, Refill Drinking

Water Depot and Crystal Ice Factory. The success

carried out by the village officers in the management

of the BUMG over a period of 4 years since the

village fund was disbursed by the government has

been able to open jobs for the community. The

results of this study can later be applied in other

locations to transmit this success as a solution to

poverty alleviation in Aceh, through further studies

on community poverty alleviation strategies through

the BUMG in Kampung Belakang.

2 METHOD

This study used qualitative methods, which

according to Bogdan and Taylor(in Moleong, 2007),

these methods are translated as research procedures

that produce descriptive data in the form of written

or oral words from people and observable behaviour.

The informants participated in this study were:

1) The village leader of Kampung Belakang, 2) The

village secretary, 3) The managers of the BUMG, 4)

The community who received the benefits from the

BUMG.

Data collection in this study was carried out

through observation, interviews, and documentation.

The steps in data analysis data collection, data

reduction, data presentation, and conclusion drawing

or data verification.

3 RESULTS AND DISCUSSION

An independent village is a village which is capable

in managing and cultivating its potential and

resources. Furthermore, this kind of village can build

its social networking and develop cooperation. The

establishment of BUMG which aims to make a

village independent can empower villagers’

organization, facilitate and strengthen village

deliberation, and organize critical awareness of its

community (

Fauzil, N. 2018).

The results of this study revealed that there were

five strategies which were established by the officers

of Kampung Belakang in alleviating poverty as the

following.

3.1 Performing Calculations about the

Potential and Opportunities of the

Village Enterprise

In solving poverty, Kampung Belakang officers

undertook mapping approach for determining any

available potentials in the village. The mapping was

carried out through deliberating with the villagers

and village officers, and it was also attended by

village elements, BUMG teams, TuhaPeut(council

of four elders), youth element, PKK (Empowerment

of Family Welfare) elements, and community

leaders.

The village leader of Kampung Belakang

emphasized that the type of business established

should be beneficial for the village and also should

be different and unique compared to those that had

been running in other villages that gave no positive

value and benefit for their village. In other words,

the business programmed in Kampung Belakang

Village must be a productive one.

Moreover, Kampung Belakangofficers should

not only focus on the potential aspects and business

opportunities that would be implemented, but

assured that the type of business carried out must be

able to provide an added value which includes

village's original income. In addition, the business

programmed in the village was expected to be able

to hire the surrounding villagers and empower the

local youth as a way to increase job opportunities

there.

able 1: The types of the business program that had been

agreed and stipulated in the deliberation carried out in

Kampung Belakang Village.

No. Program Year

Number

workers

1 Paving block 2018 5

2 3R waste dump site 2017 5

Refill drinking water

depot

2017 3

4 Ice factory 2017 1

5 Savings and loans 2018 3

6 Animal feed 2019 3

Source: Officers of Kampung Belakang Village, 2019.

Community Poverty Reduction Strategies through a Village-owned Enterprise in Kampung Belakang Village, West Aceh Regency

357

3.2 Conducting Socialization of the

Type of Business Program That

Would Be Implemented

According to KBBI (The Great Dictionary of

the Indonesian Language),socialization is an effort

to spread something that is informative to be

renowned, acknowledged, understood, and

internalized by the public or community.

Socialization is quite important to conduct since

without it, the goals or the programs set by an

organization are highly unlikely to be realized.

Socialization is one of the important activities in

sustaining an organization, company, and

government, including village governments.

Socialization was one of the main activities carried

out by the village officers to make their business

program successful, profitable, beneficial, easily

comprehensible, and popular among villagers. One

of the strategies implemented by Kampung

Belakang village officers was conducting

socialization for their program for the community in

order to gain positive support from them, and also to

involve them in the implementation process.

The socialization activities did not merely cover

about introduction of the six mentioned business

programs, but also elaborate them so that the

community would know the amount of the budget

needed for running them. Furthermore, the village

officers also gave an elaborative explanation to the

community that the programs were chosen based on

the potentials existing in Kampung Belakang village.

Based on the researcher’s view, the socialization

activities done for each business program in

Kampung Belakang Village were very effective

since transparency was an essential aspect for

Kampung Belakang villagers considering they

would be informed about the business thoroughly

both from the program implementation and the

amount of finance needed for it. This transparency

would also become the fundamental factor that made

the programs run successfully.

3.3 Development Plan Deliberations

Deliberation is an effort made together to solve

various kinds of problems and agree on decisions

produced. Deliberation is derived from Arabic,

namely syawara, which means to negotiate or to

recollect. Deliberation has the aim to reach

consensus or agreement. Basically, the principle of

deliberation is a part of democracy.

Before the implementation of the program, the

village officers carried out deliberations to prepare a

development plan involving stakeholders in the

village.

The deliberations on the development plan were

undertaken to determine the various agreed

programs, the human resources to be involved as

well as various agreements related to the

implementation of the program. In addition, the

development plan deliberations also determine the

amount of finance and infrastructure used for each

program.

3.4 Programs Implementation

The next strategy undertaken by the officers of

Kampung Belakang nodimarefanda is implementing

the program itself. The implementation would be

successful if the village officers and the community

were equally committed to build the village.

Implementation according to Van Meter and Van

Horn (1975) is the realization of actions by

individuals, officials, government agencies or

private groups aimed at achieving the objectives

outlined in certain decisions. These bodies carry out

governmental tasks that have an impact on citizens.

According to Friedrich (1963), implementation is

a policy in a form of an action that leads to the goals

proposed by a person, group or government in a

particular environment in relation to the existence of

certain obstacles while looking for opportunities to

achieve the desired goals.

In Kampung Belakang, the BUMG program has

not fully succeeded in making the village

independent. It is based on the facts from data

collection that the researchers found that the village

government has not been able to realize the goals of

the program. This is stated by Silvia, M (2018) that

the cause for this problem is the human resource

factor that cannot be optimally empowered.

In addition, the officers of Kampung Belakang

also experienced some obstacles in implementing

the program, including:

1. The efforts carried out had not developed

significantly due to the lack of human resources

who were reliable in handling the problems of

each program. For example, most of the ice

produced in the "ice factory" program was not in

a form of perfect block because of problems in

the machine. The problems had not been

resolved because there were no human resources

who had expertise in fixing the machine. This

certainly hampered the operation of the ice

factory. In fact, this type of business is a type of

business that is productive if managed properly

and correctly.

ICOSOP 3 2019 - International Conference on Social Political Development (ICOSOP) 3

358

2. Another obstacle faced by the officers of

Kampung Belakang was the lack of awareness of

some people, especially in the savings and loan

program. This program was implemented in

2018 with a budget of Rp. 150,000,000, which

was lent to 45 people with the provision that they

are the residents of Kampong BelakangVillage

and classified as economically disadvantaged.

The loaned money must be returned within one

year and without interest. However, what

happens in the field was that there were still

some people who had not returned the money to

the BUMG manager. This was due to the view of

some people that the money was government

assistance and should not be returned to the

village officers.

3.5 Continuous Supervision for the

Programs Implemented

Another strategy that was also carried out by the

village officers was to supervise every program that

was carried out.

The supervision aimed to make the program run

smoothly in accordance with a predetermined plan.

The supervision carried out was generally effective

and also continuously because the village officers

was active to evaluate the success of the program.

Of the six BUMGs that had been carried out

since 2017, they were able to provide profits/income

to villages and could employ the community in

every business implemented. The supervision was

carried out not only by village officers, but also

involved elements of the community.

The types of supervision carried out by village

officers were:

1. Direct supervision; carried out by village

officers, especially by the village leader and

BUMG managers by directly observing,

studying, examining or carrying out their own on

the spot checks at the place of business. In

addition, the village officers also received reports

directly submitted by the village community and

immediately followed up on each report

submitted.

2. Indirect supervision; by receiving reports both

verbally and in writing from the community, as

well as studying the opinions expressed by the

community.

Besides carrying out direct and indirect

supervision, the village officers also applied

preventive and repressive supervision, where they

always conducted audits before implementing the

program, for example by supervising preparations,

work plans, budget plans, and use of personnel and

other resources plans.

4 CONCLUSION

Based on the results of the study, it was found out

that there were five strategies carried out by the

officers of Kampung Belakang Village in alleviating

poverty, consisting of:

1. The officers of Kampung Belakang along with

the community performed mapping for the

village’s potentials and business opportunities.

2. The officers conducted socialization on the type

of business programs that would be carried out in

Kampung Belakang.

3. The officers of Kampung Belakang conducted

deliberations to compile the development plan by

involving all stakeholders of the village.

4. The business programs were implemented by

involving the villagers of Kampung Belakang as

the workers.

5. The officers of Kampung Belakang continuously

supervised the implementation of the business

program.

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