93 Community Participation In Developing Cupak Village As A Tourist Destination In Jombang, East Java, Indonesia Siti Mujanah1, Candraningrat 2, Gustaf Naufan Febrianto3, Tri Ratnawati4 1,3,4 Universitas 17 Agustus 1945 Surabaya, Indonesia 2 Universitas Dinamika Surabaya, Indonesia e-mail: sitimujanah@untag-sby.ac.id ABSTRACT: The study aims to identify factors influencing agency costs in publicly listed IT firms in Bangladesh. The research is based on secondary data from nine IT firms listed on the Dhaka Stock Exchange (DSE) between 2018 and 2021. The effects of eight independent factors: board size, firm size, female directors, independent directors, managerial ownership, foreign ownership, institutional ownership, and leverage, are examined in this study. For measuring the agency costs, the Asset Utilization Ratio (AUR) and Expense Ratio (EXR) have been employed as proxies. An ordinary least square (OLS) regression model has been used to test the hypothesized model. The study findings indicate that managerial and institutional ownership is inversely and significantly associated with agency costs. In INTRODUCTION Tourism is essential for the local community of a developing tourism village, because it is essential as one of the sources that improve people's welfare. Still, in its implementation, it is necessary to involve the community to play an active role by their respective capabilities. Tourism is widely seen as an activity that has a multidimensional development process. This is because tourism acts as a source of regional income. Tourism development has been proven to improve economic life in the local region, because it creates employment, builds MSMEs in tourist areas, and boosts local potential. As a result, tourism activities in the region open up many business opportunities and exploit the potential in the region. the area. Tourism Village is integrated between attractions, accommodations and other supporting facilities that are prepared and shown in the life of the village community and integrated with the procedures, culture and traditions that live in the community. A tourist village is a rural area presented with uniqueness and unique characteristics so that it becomes a tourist destination. For example, having a beautiful natural environment, culture and habits that coexist in the community perfected by having food specialties, agricultural land, and the family kinship system. (Revi Agustin Aisyianita, 2022) A strategy for a tourism village to develop is needed, including (1) Holding promotions and campaigns; (2) Providing various attractions by developing agro-based local resources such as plantations, local cultural arts, and attractive attractions for visitors. (3) There is economic activity in the local community by preparing souvenir centers with local staple materials. (4) Preparing culinary and souvenir centers, (5) Developing and involving the community as ABSTRACT: This research was conducted to utilize a model of community participation in the development Cupak Village as a Tourist Destination in Jombang, East Java, Indonesia. The approach used in this research is a qualitative approach, which describes the participation of the community in the development of a tourist village. The informants in this study were village officials, pokdarwis administrators, local youth organizations, community representatives and visitors. Information was taken through structured interviews. The study results show that developing a tourism village requires participation from various parties, including the community as the major actor, the local government, and stakeholders in charge of providing guidance. Likewise, the university's role took a significant place by providing Assistance in managing the tourism village while the role of SMEs is to provide special products that can be offered to visitors. The implication oif this study. This research aims to provide an overview of village communities in developing tourism villages by involving the community to participate. Keywords: Qualitative, Community Involvement, and Tourism Village Development. Business and Finance Journal, Volume 8, No. 1, Maret 2023 94 tour guides and training them in providing good service to visitors, and (6) Providing home stay facilities (Siti Mujanah, 2016). Thus, the development of tourist villages can be carried out through strategies that must be developed, namely by building MSMEs involved in culinary, souvenirs, souvenir centers, accommodation, homestays, and others. The existence of micro-business activities, will have an impact on economic activities that can improve people's welfare. The development of a tourist village is significant to involve the community. Active participation of the local community is needed because, through community empowerment, the tourism development process can originate from the community while carrying out tourism activities (Dedeh Maryani, 2019). Community involvement in development is related to the meaning of the community involvement concept, according to Winarni (Sulistiyani, 2004). The study adds to the existing body of knowledge by providing empirical evidence and insights on the role of community involvement in tourism village development. It contributes to the theoretical understanding of how community participation can positively impact various aspects, such as decision- making processes, management activities, and cultural preservation in the context of tourism villages. This study investigates specific aspects of community involvement in tourism village development in Cupak village, Jombang. The study aims to examine the role of the community in decision-making processes, management activities, cultural preservation, and socio-economic contributions related to tourism development. It seeks to understand the level of community participation, the challenges faced, and the strategies employed in fostering community engagement. Additionally, the study will explore the impact of community involvement on sustainable tourism practices and the overall development of the tourism village. The development of tourism villages through community participation is critical because the people know precisely the situation and conditions, what is needed, and the culture and attitudes that exist in their area. Communities in tourist villages can explore the natural and human resources they have in the village. The local community is significant in decision-making, management, and activities on the tourist sites. The development of a tourist village can be successful if efforts are made, such as building human resources, partnerships, productive activities in the village, promotions, festivals, performances, coaching community organizations, and collaboration with other institutions in its implementation (Soemarno, 2010). This research aims to comprehensively understand an effective community involvement model in tourism village development. Through a qualitative approach, this article will describe how community involvement plays a role in developing a tourism village. Thus, the article aims to contribute to the theoretical understanding of the factors influencing the success of community involvement in tourism village development. For this reason, in research funded by the Matching Fund from Dikti, Directorate General of Higher Education, it is hoped that Community Involvement can be used in developing a tourism village in Cupak village, Jombang Regency, East Java Province. Siti, M., Candraningrat., Gustaf, N., Tri, . Community Participation In Developing Cupak Billage As A Tourist Destination in Jombang, East Java, Indonesia 95 LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT Tourism Village Development The development of a tourist village can be designated as a tourist destination. Tourism villages are developed by combining natural tourist attractions with the culture and uniqueness that coexists in the community, as well as adequate supporting public facilities, the culture, and traditions of the local community. The essential in developing a tourist village is to develop its village, focusing on involving and empowering the community in building the village independently. The development is a government program to empower people to be more independent, reduce unemployment and improve welfare, thus can be done through developing productive businesses through MSMEs, and boosting local potential. The development is expected to improve the local community's economy by increasing income and employment, community skills, and utilizing the surrounding environment. The Government program will invite all levels of society to make this tourism village development program successful. Complementing it with clear regulations and procedures regarding tourist destinations, management and development of human resources. The results are expected to serve as examples to other potential villages. So the goals can be achieved in increasing people's welfare and preserving the community's culture and environment. The development of a tourist village needs to be carefully planned in choosing the attractive tourism potential as a tourist attraction, and the willingness of local wisdom needs to be developed creatively, innovatively, and cooperatively (Siti Mujanah, 2015). Thus it can be said that the development of a tourism village must be planned considering village potential and community participation in managing and preparing infrastructure creatively, innovatively, and collaboratively with communities. In addition, it must also consider environmental conditions and provide business opportunities and employment for the surrounding community (Yoskar Kadarisman et al, 2022) Community Involvement Community participation is a process and initiative from the community which is taken and carried out by their way of thinking, using tools and processes through institutions and mechanisms where they can assert control effectively (Nasdian, 2014). He further said that, participation in community development is created by the maximum participation of the community as subjects in activities by involving all active participation in every stage from planning, implementing, and evaluating until they can enjoy the results. Thus, it can be said that community participation in tourism village activities consists of the planning, implementation, and monitoring stages (Dewi et.al 2012). The level of community participation is the degree to which the community is engaged in the preparation program to implement an activity (Oktavia and Saharuddin, 2013) . According to Nasdian(2006), community involvement in community development is to participate optimally in an activity at every stage, from planning, implementing, and resulting to supervision. Pitana (2002), states that community participation is not only in the Business and Finance Journal, Volume 8, No. 1, Maret 2023 96 form of the contribution of energy, time, and materials in supporting various activities in a building but can be actively involved in every activity. An active role starts with planning, determining design, and implementing, as well as monitoring and enjoying the results or what is known as "genuine participation" or the community as tourism actors. One of the villages with tourism potential that can be developed is Cupak village, located in the Ngusikan sub-district, Jombang regency, which is the farthest sub- district from the district center, 26 km from Jombang. The long distance from the city center causes Cupak Village to be left behind in infrastructure and social development. However, Cupak village has the potential for extraordinary natural attractions that can be developed. Aside from the cold weather, several potentials tourism objects can be developed, such as religious tourism at the hermitage site of Dewi Kilisuci, Sendang Widodaren, Sendang Drajad, and Mount Pucangan; also agricultural potential such as Porang as a flour ingredient, Gadung as a chip ingredient, corn as a staple food and there is also a camping ground that can be revived. Thus, this research starts from the formulated problems, namely how to utilize model community involvement in developing a tourism village in Cupak Village, Ngusingan District, Jombang Regency, East Java Province, Indonesia RESEARCH METHODOLOGY This research used a qualitative approach, namely analyzing community participation in developing the Cupak Tourism Village, Jombang, East Java. The subjects in this study were local government officials, Pokdarwis administrators, local youth committees, community representatives and visitors taken by purposive sample with the following criteria: 1. Government officials were familiar with the developed tourism village program 2. Pokdarwis administrators, local youth committees, and community representatives which actively participate in managing or participating on tourism villages in Cupak village 3. Visitors who came to the tourist area when the survey was conducted. Data collection in this study was carried out through interviews, observations, and surveys of informants, while the primary data sources were the results of interviews and observations. The data was triangulated by cross-checking the communities participating in developing a tourism village in Cupak Village to ensure validity and reliability. Observations were carried out in a non-participatory manner, namely by observing the activities carried out by the local community in the development of Tourism Villages, such as managers of tourist attractions, tourism counter, youth who became parking attendants, and the Assistance in the formating the Tourism Villages, MSMEs and training in Processing of making agricultural products and handicrafts. Moreover, interviews were also conducted with visitors of tourism objects in Cupak Village. Data analysis in this study was carried out using Miles and Huberman in (Sugiyono, 2013), namely data collection, Siti, M., Candraningrat., Gustaf, N., Tri, . Community Participation In Developing Cupak Billage As A Tourist Destination in Jombang, East Java, Indonesia 97 data reduction, data presentation, and conclusion RESULT AND DISCUSSION Profile of Cupak Village Before analyzing data on community involvement in improving village tourism, it is necessary to know the profile of Cupak village, tourism village administrators and existing tourist conditions. Cupak Village is one of the villages under Ngusikan District, Jombang Regency. This village is very remote from the hustle and bustle of the city. This village is a division of the Kudu sub-district, located in the northern part of Jombang Regency, bordering Mojokerto and Lamongan. Cupak Village has a land area of 71 hectares and a total of 385 households and is inhabited by 1,511 people. The road infrastructure to this village is in awful condition, often resulting in accidents for road users, especially school activities and farmers who often use the road. The success of tourism villages cannot be separated from the role of the village government as organizers, including village officials in their implementation and responsibility to serve services and management. Meanwhile, the management of Cupak village's tourism villages has been formed by a Tourism Awareness Group (Pokdarwis), even though its role has not been very active. Tourist Attractions in Cupak Village A professional Management of a tourist village and supporting environment will undoubtedly have a positive impact on the development of a tourist destination and vice versa so that the community in its development does not only look at the economic side of the development. They also pay attention to other aspects which lead to quality and sustainable development. The novelty of this research and the aim is to analyze the benefits of developing a tourist village, especially on natural, sociocultural, spiritual, and economic aspects in the Cupak Tourism Village district. Jombang. The several tourist attractions in Cupak Village can be seen in Table 1. Table 1. List of Tourist Attractions in Cupak Tourism Village No Tourist Attractions 1. Mount Pucangan 2. 7 Sendang 3. Tomb of Dewi Kili Suci 4. Camping Ground Source:https://direktoriwisatajombang.hom e. blog/gunung-kapucangan/: 1. Mount Pucangan Mount Kapucangan is a historical place. It was the territory of the first child of King Airlangga, Dewi Kili Suci who ruled in the Bengawan Brantas and Mount Kawi areas. During her lifetime, Dewi Kili Suci lived in Mount Kapucang. Her real name is Sanggramawijaya Dharmaprasada Tungga Dewi often meditated in this place, so the place was known as the Tomb of Dewi Kili Suci. It is located on the site of Mount Pucangan. Many people often come to this place to pray or visit this place, sometimes, there are rituals practiced by some people who still believe it. Business and Finance Journal, Volume 8, No. 1, Maret 2023 98 2. Sendang There are 7 (seven) sendang in this village. One famous is Sendang Drajat, located on Mount Pucangan, Cupak Village, Jombang Regency. It is believed that Sendang Drajat provides an advantage for those who really believe in it, the ones here are Sendang Drajat and Sendang Widodaren. Visitors often perform rituals of siraman and bathing, and this is done by many locals and tourists from outside of Jombang with the intention that the prayer can be achieved. Sendang Drajat is a sacred place and is used as a place for rituals at certain times, especially on Friday nights especially in Javanese calendar, Jumat Legi, is very crowded with people who come from various regions. 3. Tomb of Dewi Kili Suci Dewi Kili Suci is the daughter of King Airlangga who is buried on Mount Pucangan. This place is always crowded with pilgrimage visitors. Every day many visitors come to this place, most from outside Jombang and some from outside Java and abroad, such as from Malaysia. Based on the records of visitors who came to this tomb on Thursday Kliwon and Friday Legi, visitors could reach more than 50 people from morning to evening, so that the tomb of Mount Pucangan was packed with visitors. Pilgrims of the tomb of Dewi Killi Suci believe that the tomb of Mount Pucangan is a place where ancestral remains must be respected. Most of those who visit this place have religious beliefs, where they think that this place is a sacred place to fulfill the prayers. 4. Camping ground The camping ground in Cupak Village, Ngusikan District, Jombang Regency, currently looks unkempt, filled with growing grass and wild plants. Even before Covit-19, this Campground was visited by many residents from outside Cupak village, including for school activities, relaxing, doing activities in nature or others. Visitors to Tourism Villages in Cupak The starter considered a strategic step in arousing public awareness to develop community-based tourism villages is strengthening community awareness of local potential. Community involvement in developing tourist villages is something that absolutely must be fulfilled. The existence of a Tourism Awareness Group (Pokdarwis) is important because it can help manage tourism villages. Furthermore, it can also help campaign and promote tourism villages through various media. The diversity of tourist attractions with their uniqueness will be a driving and pulling factor for visitors to visit tourist villages (Nurcahyo, 2015). In addition, the efforts made in developing tourist destinations are good, appropriately managed by providing supporting facilities and infrastructure visitors need, and easy accessibility that is beneficial to be promoted. The results of a survey of tourists visiting Cupak Tourism Village, Jombang, through a questionnaire showed that the majority of tourists who visited Cupak Tourism destination were for religious purposes as many as 47.84% and for refreshing purposes Siti, M., Candraningrat., Gustaf, N., Tri, . Community Participation In Developing Cupak Billage As A Tourist Destination in Jombang, East Java, Indonesia 99 covered 39.13%, showed that most visitors come to do religious or belief deeds, and some of them visit for refreshment. When the visitors were asked the original information about the tourist attractions in Cupak village, most answered from friends and relatives, the obstacle they faced when visiting Cupak village was the awful and poor infrastructure, especially roads that should be repaired but no further action has been taken so, tourists find it quite difficult to visit Cupak Tourism Village. This became the major reason which covers a percentage of more than half of tourists. On the other hand, they agreed to visit the Cupak Tourism Village back at some point in the future, as shown in table 2. Table 2: Purpose of Visiting Cupak Tourism Village Purpose of Visit Frequency Percentage Refreshing 18 39.13 % Religious 22 47.82 % So that prayers are answered 2 4.34 % Visitation 4 8.69 % Others 0 0 % Table 2 shows that most of the tourist visitors in Cupak village have religious purposes, for 47.82% of the respondents, the purpose is to meditate and get inspiration or the goal can be achieved through meditation which is carried out on Mount Pucangan. As for the origin of information of the tourist attraction, they get the references from other peoples, most of the references were from their friends for 47.82%, and the others from relatives which were 34,78%. This can be seen in table 3. Table 3: References to Visiting Tourism Sources Frequency percentage Friends 22 47.82% Relatives 16 34.78% Family 8 17.39 % Social Media 0 0% Others 0 0% Community Participation in Tourism Village Development Community involvement in tourism village development can be involved in planning, implementing and supervising the tourist villages in Cupak Village. Community participation can be done directly or indirectly. It can be carried out directly by representatives of the village community, from the local government, related government agencies, universities, and also community participation from the informal sector that can support the development of tourist villages such as porang farmers, gadung plant processors, charcoal wood processors and woven mats as well as on-site coffee shops. 1. Community participation in planning This form of community involvement in tourism village development is carried out by involving the community or representatives from each element (village officials, Pokdarwis, the youth organizations, RT, RW, community leaders and other community representatives) in preparing plans and strategies for the development. Business and Finance Journal, Volume 8, No. 1, Maret 2023 100 Starting with calculating the budget, Finding sources of funds, and activities to be carried out. The decision-making is done by holding a democratic discussion which will be used as a guideline in carrying out the development of tourist villages in the hope that it develops well by having many visitors which leads to increasing the community's economy level. The community is allowed to express opinions and provide input that can be used as material for planning activities in tourism development. However, usually the final decision is still issued by the government. The community has a role in providing suggestions and opinions and making better decisions, although this community participation is unlikely to produce changes in society (Palimbunga, 2013). 2. Government Participation in Tourism Village Development Local governments, Ministry of tourism and creative economy, and other related agencies have so far executed government involvement in the developing tourism villages. There are a number of activities that have been given as aids in development, including the following: 1. providing guidance to tourist villages in Cupak village, 2. assisting in the formation of Pokdarwis, 3. formulating the Village Medium- Term Development Plan (RPJM Desa) and the Village Development Work Plan (RKP Desa) regarding villages tourism, 4. Financial Assistance through the Village APBD (Village Revenue and Expenditure Budget) allocated through BUM Des, for the development of business units. 5. As a Facilitator, by facilitating a Cooperation Agreement (PKS) between Perum Perhutani KPH Jombang and village organizations Community Institutions Forest Village (LMDH) Sustainable Forest Partners in managing tourism objects. 6. Promotion of the introduction of tourist villages through the Kirap Pusaka Cultural Festival and Cupak Village Culture every year. 7. Providing Training on Tourism. 8. Providing Assistance in the development of tourist villages. College Participation College is an educational institution that must implement the Tri Dharma, one of them is providing community service. As a form of concern for the community, college is responsible for solving community problems, such as tourism development. The activities as follows: 1. Exploring problems and finding solutions can be done with surveys or research to get concrete results to determine the solution. 2. Providing Assistance in managing tourist villages with Siti, M., Candraningrat., Gustaf, N., Tri, . Community Participation In Developing Cupak Billage As A Tourist Destination in Jombang, East Java, Indonesia 101 the right strategy to obtain optimal results. 3. Providing Assistance and Appropriate Technology for MSMEs that can be developed to support the development of tourist villages, such as the availability of souvenirs and processing the main agricultural products. 4. Seeking funding for the development of tourist villages by submitting grant programs from college such as PKM, Matching Fund and other government funding programs, it can also be from the private sector such as Corporate CSR, as well as from college Grants in community service programs and others. Thus it can be said that tertiary institutions have an essential role in developing tourist villages to improve community welfare. Universities are able to respond as a whole to a wider context in the form of unsustainable crisis conditions and opportunities to seek sustainability in accordance with Sterling(2004). Participation of MSMEs Cupak Tourism Village, Jombang Regency is known as an agrarian village, this village has tremendous potential for natural resources, and the village is still beautiful. The livelihoods of the people in this village are farmers. Therefore, the main economy in Cupak Tourism Village is agriculture. However, another potential can be developed, namely processing existing agricultural products to provide profitable value to the community's economic activities. Based on the survey at the location, several small MSMEs were found with various types of business fields. Micro, small, and medium enterprises (MSMEs) in Cupak Tourism Village are considered to have a strategic role. This is considered to be a potential proponent of the village economic development if it is adequately developed. The following is a list of SMEs developed in the Cupak Tourism Village. Table 4. Table of the List of SMEs in the Cupak Tourism Village No Tourism Village 1. Porang 2. Chips Gadung 3. mats and bags from pandanus product 4. Charcoal 5. Traditional Herbal Medicine 6. Coffee Shops The participation of UMKM in Cupak village is very important. Because with the existence of MSMEs, there are products that can be sold and enjoyed by visitors as designated souvenirs from Cupak village. So far, in the village of Cupak, there have been several MSMEs that can support the development of a tourist village. However, the existing potential still needs to be developed, for example, porang agricultural products, which are only sold raw, very cheap. To add more profitable value they need to be processed into flour then used to make various cakes and snacks. The production of mat handicrafts also needs to be diversified into bags, tissue boxes Business and Finance Journal, Volume 8, No. 1, Maret 2023 102 and so on. Likewise, people who have empty rooms can rent them as Homestays, utilizing residents' houses to rent out their bedrooms for tourists from outside the area who want to stay overnight. Moreover, transportation is also essential and very much needed by visitors. Culinary in this village is another important factor to boost tourism village development by providing food specialties whose existence can be found very few for visitors. Model Community Involvement in Tourism Village Development Model development is an attempt to discover, improve or develop something new that is adaptive and innovative by certain scientific principles and methods so as to produce the desired formulation. The development model here is a model of community involvement or participation in tourism development, so that it can be used appropriately in developing tourism villages in Cupak village, Jombang Regency. Based on the findings of the survey results above, the model that can be formed in the framework of community participation in the development of a tourist village in Cupak village is as follows: Figure 1: Community Involvement in Tourism Village Development Figure 1 shows the Community Involvement in developing a tourism village in Cupak village, sub-district Mungut, Jombang Regency. Where in the development of a tourist village, the participation of various parties is needed, including the community itself, without the participation of the community, the tourism village cannot be created and built because the community is the major actor in the development of a tourist village, besides that the village government and related agencies also plays a very important role, namely in providing guidance and guidance assistance as well as the formation of POKDARWIS legally as well as providing funding and training for Human Resources as main player in the development of tourist villages, apart from the government. The college has a vital role in providing community education, besides that it can provide Assistance with precise solutions to any existing problems and provide Assistance in managing tourist villages and SMEs that are developing and also as a facilitator or fund seekers from several grant programs from the government and from CSR companies. In the light of important role of MSMEs which very helpful in the development of tourist villages in encouraging the provision of unique products that visitors can purchase as souvenirs and culinary delights that can be enjoyed by visitors to the Cupak tourist village. CONCLUSION The development of a tourist village, the participation of various parties is needed, Siti, M., Candraningrat., Gustaf, N., Tri, . Community Participation In Developing Cupak Billage As A Tourist Destination in Jombang, East Java, Indonesia 103 including the community itself, the village government and related agencies also play a very important role, in providing guidance and Assistance for example forming Pokdarwis legally and providing funding and training for Human Resources. Other important roles were university as the formal institution, while the informal one are also important on supported such as MSMEs in providing unique products that visitors can purchase as souvenirs and culinary delights that can be enjoyed by visitors to the Cupak tourist village. The implications of this research indicate that developing a tourist village requires the participation of various parties such as the community, government, college institutions, and also MSMEs, that can support productive economic activities. This research has limitations: people with relatively low education, so extra abilities are needed to get good data that is by the expected goals. Recommended suggestions for tourism village managers is to always be creative, innovative, and approach the parties involved to provide the necessary facilities and proper infrastructure. Suggestions for further research are the application of Community Involvement to the development of tourist villages. 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