GEO-ENTREPRENEURSHIP TOWARD SUSTAINABLE RURAL DEVELOPMENT: SELECTED CASE STUDY OF MIDDLE-LEVEL VILLAGES IN CENTRAL JAVA PROVINCE, INDONESIA

• Main Author: Ramses, Muchamad
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/80939
• Institution: Institut Teknologi Bandung

The Indonesian government allocates annual financing through the Rural Affairs Ministry with the aim of improving the local economy through village self-reliance. As such, each village should recognize their potential resources for productive economic activities. Additionally, geo-entrepreneurship, which integrates spatial and social approaches, should be applied as an innovation solution for geo- adaptation sustainably, particularly for the middle-level villages that have a high risk of falling to lower levels due to the middle-income trap. Therefore, the aim of this study is to discover effective strategy by solving the local issues into collaborative adaptation for sustainable rural development in Indonesia’s middle- level villages, through variables of geographic character (GC), demographic quality (DQ), entrepreneurial support (ES), and geo-entrepreneurship (GE). Moreover, sequential explanatory analysis was applied by three data collection methods: a questionnaire survey, observation, and interviews. A total of 457 questionnaires were obtained by snowball sampling in three middle-level villages in Central Java for descriptive statistics and PLS-SEM analysis, followed by observation for spatial analysis and in-depth interview with 15 respondents for proposition analysis. Descriptive statistics test supporting and contradictory items of variable, which later followed by the PLS-SEM. PLS-SEM findings show that the direct correlation of GC toward GE is nonsignificant, yet it requires a bridge of connection of ES as mediator. Nevertheless, DQ has a positive effect to GE, both directly and indirectly. This path analysis results then explained by field conditions through spatial and proposition analyses to produce comprehensive explanatory framework. In brief, the propose framework is an ideal shape for the sustainable rural development idea. However, actual situations shows that the GC has yet to be fully explored. Hence, positive government actions, upscaling knowledge and creation, and capital support are required to activate the creation of geo-potential to be geo-entrepreneurship, so the enactment of the ecosystem as the innovation cornerstone for sustainable rural development strengthens economic resiliency, especially in Indonesia.