45 THE ROLE OF SOCIAL CAPITAL IN VILLAGE OWNED BUSINESS ENTITIES (BUMDes) ON VILLAGE DEVELOPMENT (Case Study in Pujonkidul Village, Pujon District, Malang Regency) Volume: 4 Number: 1 Page: 45 - 53 1Rona Rio AKBAR, 2Maryunani MARYUNANI, 3Sasongko SASONGKO 123Faculy of Economics and Business, Brawijaya University, Indonesia Corresponding author: Rona Rio Akbar E-mail: rioa2210@gmail.com Article History: Received: 2022-11-13 Revised: 2022-12-20 Accepted: 2023-01-17 Abstract: This study aims to determine what social capital affects the management of BUMDes for village development and to find the elements of social capital to help solve existing problems. By using qualitative research methods, this study seeks to explore the elements and roles of existing social capital and then analyze how this social capital plays a role in solving the problems faced. The results of research and observations of all elements of social capital, namely trust, network, norm, and reciprocal, are all contained in the management of BUMDes. However, the most dominant is the network of all existing elements, thanks to the breadth of relationships and networks. This study also proves that the solution to the problems that exist in the parking business unit, namely the problem of irregular parking by visitors due to the available parking is no longer able to accommodate the vehicles of visitors to the rice field cafe on certain days, so reciprocal is the solution to this problem. Mutual benefit between residents and parking unit managers. Then from the side of trust, the existence of mutual trust between the villagers and the manager of the rice field cafe will strengthen the kinship so that no more problems arise. Keywords: Social Capital, Village Owned Business Entities, BUMDes, Pujonkidul. Cite this as: AKBAR, R.R1., MARYUNANI2., SASONGKO3. (2022) “The Role Of Social Capital In Village Owned Business Entities (Bumdes) On Village Development (Case Study In Pujonkidul Village, Pujon District, Malang Regency).” International Journal of Environmental, Sustainability, and Social Sciences, 4 (1), 45 – 53. INTRODUCTION From a government perspective, Village-Owned Enterprises (BUMDes) is one element of providing public services for rural communities. With BUMDes, problems or community needs can be resolved and fulfilled so that indirectly in this situation, the village has provided services to the community. BUMDes also plays an important role in efforts to encourage village economic development and is also an effective step to improve the welfare of rural communities. Furthermore, one of the most important aspects in managing BUMDes is social capital. According to Cohen and Prusak (2001) provides an understanding that social capital as a stock of active relationships between communities. Every relationship pattern is bound by mutual understanding and shared values that bind group members to make the possibility of collective action to be carried out effectively and efficiently. Then the relation to BUMDes, according to (Rachmawati, 2015) that social capital is the key for the community to improve their living standards to achieve a more organized and prosperous life through BUMDes. However, on the other hand, BUMDes itself must be able to become economic capital for village development. The management of BUMDes must also be well institutionalized so that the process to achieve BUMDes goals can be carried out as expected. A well-organized and directed BUMDes will greatly affect the increase in the participation rate of rural communities in village development, and business opportunities can also be created so that it will have implications for increasing Village Original 46 Income (PADes). Regarding the increase in PADes, Pujonkidul Village, through BUMDes, has contributed a lot to PADes. The following is the data for PADes in Pujonkidul Village from 2017- 2021. Source: BUMDes (2022) Figure 1. Village Real Income (PADes) Pujonkidul Village, Malang Regency. In this study, the BUMDes named BUMDes "Sumber Sejahtera" is located in Pujonkidul Village, Pujon District, Malang Regency. It was chosen as the object of research because it is one of the villages that are quite successful in developing and managing BUMDes, compared to other villages in the Pujon sub-district. As a village that has succeeded in building BUMDes well, it has a series of proud achievements, including: Table 1. Pujonkidul Tourism Village’s Achievement No. Year Achievement’s Description 1 2016 As a National Climate Village Program (Proklim) (www.cnnindonesia.com) 2 2017 The Best Tourist Village in Indonesia with Agro Tourism Village Category (www.jawapos.com) 3 2018 Winner of the Indonesia Sustainable Tourism Award (ISTA) (www.malangtimes.com) 4 2018 Be an example on the Ministry of Village website because of the success of managing village funds to increase PADes (www.viva.co.id) 5 2018 Published in a Video on President Joko Widodo's Youtube Account with the Title "The New Era of Pujon Kidul Village" (www.economy.okezone.com) 6 2018 Received an Award from the Minister of Tourism for the Category of Independent Pokdarwis (Pujon Kidul Pocket Book of Various Enchanting Tourism Villages) Source: Various Sources (2022) From these achievements, BUMDes Sumber Sejahtera Pujonkidul is at the forefront of efforts to improve village development. The Sumber Sejahtera BUMDes has eight business units, including the Clean Water unit, the Finance unit (Laku Pandai), the Live In unit for the Sawah Cafe, the Parking unit, the agricultural unit, the TPST unit (Integrated Waste Management), the Development and Infrastructure unit. More details can be seen in table 2. The first unit is a clean water unit. Starting from the needs of the community, the needs of the people of Pujonkidul Village for clean water are vital. Before there was a clean water unit, irrigation for clean water in the village was still using the old method, namely using standard piped reservoirs in small pieces, then divided -share the water to the community, and things like that 47 make there a little cheating and disputes between residents because of the unequal distribution of water. Then there is also much abuse channeled to agriculture and flows to livestock, whereas the number one is clean water for household needs and the second is for livestock, and the rest is for agriculture. It started from there because of the many conflicts in the community. So finally, a metering system was started because there could be no cheating. There is the main pipe, which is embedded in the ground, and every citizen who wants to use metered water must register with the village, and the person who wants to use the metered water must register. It can only work on technicians from clean water itself as well as PDAM water. This clean water unit started in 2015 and has been running for six years. Second, the smart behavior unit is a banking unit that partners with BNI 46, savings and loans and e-payments, and it is more stored than loaned. Because the residents' main set when BUMDes makes loans to residents, residents think this is a grant fund, and it will be difficult to return it later, and BUMDes does not dare to take that risk. Table 2. Village Owned Enterprise Unit (BUMDes) “Sumber Sejahtera”, Pujonkidul Village, Malang. No. BUMDes Unit Year of Establishment No. of Core Members 1 Clean water 2015 11 People 2 Finance (Laku Pandai) 2015 3 Live In 2015 4 Café “Kafe Sawah” 2016 5 Parking 2016 6 Agriculture 2016 7 TPST (Integrated Waste Management Site) 2016 8 Development and Infrastructure 2019 Source: Director of BUMDes Pujonkidul (2020) Third, the live-in unit is a unit that manages more about village potential, and this unit is incorporated into tourism guidance, starting from the potential of the existing village. Finally, a scouting team was formed to expose what exists and the potential of village tourism, and it is this live-in unit that exposes all village potential. Ranging from tourist destinations to Small and Medium Enterprises (SME) products and managing the face of the village. Fourth, the café "Kafe Sawah". This unit is continuous with the live-in unit because the live- in team only accepts group packages. There must be a destination for individuals, so the Kafe Sawah is open to support the needs of people who come to travel, especially those who do not come in groups, and this opens up opportunities for mass tourists and accelerates village development. Then affecting, increasing participation in creating business opportunities, business opportunities can be seen from the increase in stands or stalls selling in the rice field cafe area. The latest data shows that the number of stands in the rice field cafe area amounted to 80. The beginning of the Kafe Sawah was built on the idea of a group of youths and the government of Pujonkidul Village. The construction was carried out in 2011 with only a tiny cafe plot. Then it was opened on 11 October 2016 and inaugurated on 12 March 2017 by the Regent of Malang. At the beginning of its establishment was physical capital in the form of village treasury land covering an area of approximately 6,800 M2. Then accompanied by village funds allocated for the rice field cafe approximately 50 million. As time passes, more visitors come to the Kafe Sawah. The Kafe Sawah is currently one of the family tourism destinations. The Kafe Sawah has a concept with a beautiful panorama surrounded by mountains and rice fields so that it has cool air. 48 Fifth, parking units. This parking unit is made to accommodate vehicles that visit the rice fields cafe. Before there was a parking unit, parking was first on the sides of the road and was chaotic and disorderly. A special land was finally provided for the parking area to resolve conflicts among residents and reduce congestion around Pujonkidul Village, which will certainly increase the income for the village. Sixth, agricultural units. This unit is not yet 100 percent complete. Its position is still in the process of making organic fertilizer. Later this agricultural unit will provide organic fertilizer, which will be distributed to the community starting from solid fertilizer and liquid fertilizer. The purpose of this agricultural unit is to reduce the use of chemicals in the area of Agriculture to be more sustainable. Currently, twenty percent is still running because the processing for organic fertilizers is still in trials and requires much time. Seventh, in the Integrated Waste Processing Unit (TPST), there is land for waste that will later be collected. Before the TPST, the main problem for the community was garbage. Garbage was dumped under bamboo trees, into the fields, rivers and behind the house, which is unhealthy and will cause soil infertility. Plastic waste will decompose fifty percent over a hundred years. With that in mind, the TPST was finally established. At this time, the TPST unit is also still in the stage of improvement, which currently only collects waste from all communities and tourist areas and separates plastic waste and organic waste, which organic is made into compost and plastic sold. No work has been made from plastic waste because the residents' mindset is still the same as in other villages. The garbage is disgusting, and now it is still in the process of how to process it into valuable works. Finally, the eighth unit is Development and Infrastructure. This unit provides building materials for village development activities, such as making cast culverts. If the village is going to carry out construction, the development and infrastructure units provide the raw materials, so Pujonkidul Village does not spend building materials outside the village. The products currently produced from the development and infrastructure units are concrete blocks and cast culverts. The future expectations of this unit, from raw materials to finished materials, are all available in this infrastructure unit. In the course of the above several units encountered several obstacles and problems. Constraints and problems in the management of BUMDes are mostly related to administrative problems, lack of parking spaces and regulations that still conflict with the interests of the community. The first problem occurs in the BUMDes business unit, namely the parking business unit. This is because parking problems usually occur during holidays, such as the new year, school, and Eid holidays. During these holidays, there is a significant surge in visitors to rice field cafe tourism. As a result, the available parking space cannot accommodate tourist vehicles. In the end, this situation forced visitors to be directed to park in residential areas and the yards of residents' houses in the rice field cafe area. As a result, residents' trust (Trust) towards BUMDes was reduced because the agreement was only verbal, and the compensation was sometimes inappropriate. The second problem occurs in the rice field cafe unit. This problem is related to regulations that still conflict with public understanding. The cause of the problem was a violation committed by one of the people who built a two-story and permanent house building, thus blocking the view from the rice field cafe. Even though this has been arranged and agreed between the rice field cafe and the community not to build tall buildings because it will hinder the beautiful scenery in the rice field cafe, there are still people who violate it because the rules and agreements are only verbal. The third problem is still related to the rice field cafe business unit. The problem stems from the trust of BUMDes towards people who want to sell in the rice field cafe area, namely by facilitating the permit to establish a business. It is enough only with a verbal agreement. However, 49 because the licensing is too easy and is only based on a verbal agreement, the number of traders in the rice field cafe area is not controlled, so it is not neatly arranged and is not suitable for tourists. The third focus of the research is to see how the process of changing the labor structure occurs and how to change the people whose jobs were originally working in the agricultural, labor and livestock sectors, shifting to the trade sector. METHODS Based on the research objective to determine the role of social capital in the management of Village Owned Enterprises (BUMDes) for village development in Pujonkidul Village, Malang Regency, East Java Province. So qualitative research was chosen as the type of research. The reason for choosing this type of research is because they want to know in-depth about BUMDes for village development in a natural social context. The type of research is case study research on individuals, groups or certain conditions qualitatively to seek meaning to understand phenomena in depth. Case studies can differ from other qualitative research forms because they focus on a "single unit" or "a finite system". The unit of observation in this study was the individual, namely the village head, director of BUMDes, head of the Kafe Sawah unit, head of the parking unit, merchant Kafe Sawah, and parking employees. The choice was made to know more in-depth about the information to be studied. RESULT AND DISCUSSION In managing the BUMDes organization, the administrators set a vision: "Creating a Prosperous Village Owned Enterprise (BUMDes) in Building a Village Community Economy that is More Effective and Competitive". Based on this vision, BUMDes Sumber Sejahtera strives to make BUMDes an economic institution that is able to compete in the midst of free-market competition and be able to overcome this competition. BUMDes Sumber Sejahtera wants to contribute to community-based economic development. BUMDes is expected to be able to become the backbone of the community's economy. Mission BUMDes Sumber Sejahtera Pujonkidul Village: 1. Improving the village economy. 2. Management of village potential in accordance with community needs. 3. Helping the community's economic services. 4. Increase Village Original Income (PADes). BUMDes Sumber Sejahtera has four missions to support the vision mentioned above. The four missions are concrete steps expected by the village in the context of rural community economic development or BUMDes as the spearhead of village community economic activities and development. Therefore, the existence of BUMDes must be based on the community's needs so that it has great benefits for the community and does not appear to be held without careful consideration for the interests of village officials. If this happens, the existence of BUMDes will only harm the community of Pujonkidul Village. The existence of BUMDes is sought to increase Village Original Income (PADes) in Pujonkidul Village. Although after the issuance of Law Number 6 of 2014 concerning villages, the central government disbursed large enough funds to support the Village Revenue and Expenditure Budget (APBDes), this does not mean that the village is just sitting idly by. Through BUMDes, it is hoped that it will be able to contribute greatly to PADes and make Pujon Kidul Village an independent village. Related to Yustika's (2006) theory, social capital is now as important as physical capital. Only people who have a high level of social trust will be able to create large-scale organizations so that 50 they can compete. It can be seen from the success of the rice field cafe and the management of village funds developed by the village head and all elements involved in it, such as the youth village government and the local community. Researchers get answers in the field explaining that Kafe Sawah Pujonkidul has a role in increasing village income. The interview with Udi Hartoko as the Head of Pujonkidul Village shows that Kafe Sawah Pujonkidul has a massive role in increasing Village Real Income (PADes). One of the policies made to increase PADes is to form BUMDes and manage all the potentials in the village. The existence of Sawah Cafe increases Pujonkidul's PADes. This is because Cafe Sawah has a tourist attraction that is in demand by the wider community. As evidence, the number of visitors at the rice field cafe experienced a high increase on holidays. So, the high interest of tourists helps increase Cafe Sawah's income so that it is able to make the Cafe Sawah business unit the highest contributor to PADes among other business units in Pujonkidul Village. BUMDes Sumber Sejahtera Pujonkidul does not run alone. This extraordinary achievement is also thanks to the collaboration with various partners. BUMDes Sumber Sejahtera Pujonkidul has various types of work units, where each work unit has different cooperation partners. The goal of having a cooperation partner is for the village's progress. From the data and explanation above, it can be explained that the element of the network and reciprocal social capital can be seen from the cooperation between business units and several parties, meaning that the network element is very important for the progress of BUMDes, from the cooperative relationship between BNI 46 and community facilities. The services provided are banking services ranging from transfers, electricity token payments, electricity bill payments, installment payments and savings. In this way, rural communities do not have to go all the way to the city to conduct banking transactions. In addition, as an effort to strengthen and improve public financial literacy, it is easier to access banking services. As for the Kafe Sawah unit, Sumber Sejahtera BUMDes cooperates with the Malang Regency Tourism Office by facilitating the promotion of tourism objects. In addition, BUMDes Sumber Sejahtera Pujonkidul also cooperates with PT. BNI Tbk as its working partner to guide the management of the rice field cafe management. Cooperation is also shown through the Integrated Waste Disposal Site unit, where this unit collaborates with the Malang Regency Environmental Service. The development of this unit aims to build an environmentally friendly village. Pujonkidul Village, through the Ministry of Public Works and Public Housing, has been chosen as the location for the construction of an environmentally friendly TPST. It is used not only as a waste disposal site but also as a place for waste management to become organic fertilizer by being managed by the community so that the fertilizer can also be used by themselves. The achievements of the village government to realize village development are also inseparable from the participation of the community because community involvement is interrelated with each other in the development of BUMDes businesses. Furthermore, it can be seen that there is a job transformation that was originally from the primary sector, namely farm laborers, now shifts to the trade sector, meaning that there has been a jump in employment, namely moving to the trade sector. Finally, the dependence on nature is getting lower. People earn income by selling in the Kafe Sawah area, which will increase the family's finances. In this case, the Kafe Sawah in Pujokidul Village is not only a pioneer in the source of employment for the local community. The existence of Sawah Cafe can also provide business and job opportunities for the community. Here Ms. Eni as a trader, initially saw an opportunity, young people hanging out and having coffee in the gazebo of the Sawah Cafe in the afternoon. 51 Table 3. Developments before and after there are Kafe Sawah No. Before the Kafe Sawah existed After Kafe Sawah 1. Village Real Income (PADes) in Pujonkidul Village is in the range of 20 to 30 million rupiahs (in 2015). Village Real Income (PADes) in Pujonkidul Village increased in the range of 1.7 billion (in 2019). 2. There are only stalls, and even the number can be counted on the fingers. The number of community business units has increased. In the Kafe Sawah area, there are 80 community business units. Along the road to Cafe Sawah, especially in front of the house, there are also many business units built by villagers. For example, a gift shop, a genuine cow's milk shop, and others. 3. The youth of Pujonkidul village have minimal job opportunities, and most of them are farmers and farm laborers. Village communities, especially youth, get many jobs at Cafe Sawah. One hundred eighty-five villagers who were absorbed by the workforce in BUMDes Pujonkidul and an additional 144 residents opened a business in the Kafe Sawah area. 4. The income of villagers who work as farm laborers is not certain every day. The income of villagers who work at Kafe Sawah is fixed as long as they are still working at Kafe Sawah. Source: Researcher, processed (2022) Another finding from this research is the shifting of norms that exist in the younger generation of Pujonkidul Village as a result of the visitors of the rice field cafe, the trend of following along is starting to enter the young people of Pujonkidul Village seeing the culture and way of dressing of visitors who come to the rice field cafe tour, on Initially the values and norms of politeness were still strong in Pujonkidul village. However, now they have begun to shift, such as visitors from outside by the way they dress they are somewhat open, which in the Pujonkidul village community is not good in terms of norms. However, the younger generation of Pujonkidu village is starting to be affected by that style. Tourist visits to the rice fields cafe disrupt some community activities that will go to the rice fields because of the high number of visitors in the rice field cafe area. This happens because the road usually used by the community to the rice fields is also used as a tourist road to the rice field cafe. The existence of safe rice fields has an impact on road damage in Pujon Kidul Village. This happens because the road to the rice field cafe is often traversed by heavy vehicles such as buses, trucks and private vehicles, resulting in road damage. It is proven by the frequent road repairs in Pujonkidul Village. This shows that the existence of Sawah Cafe impacts road damage. CONCLUSION Finally, from the results of research and observations, all elements of social capital, namely Trust, Network, Norm, and Reciprocal, are all contained in the management of BUMDes. However, the most dominant is the network of all existing elements, thanks to the breadth of relationships and networks and acquaintances from Mr. Udi as the village head, the network to the tourism office, to the Malang district government. Even to the governor of East Java, it is proven by this network that BUMDes and its units can develop and be successful as they are today. This study also proves that the solution to the problems that exist in the parking business unit is the problem of irregular parking by visitors due to the available parking space being no longer able to accommodate vehicles for visitors to the rice field cafe on certain days such as new year holidays, school holidays, Eid. Fitri and the new year's holiday, then problems arise so that motorbikes park haphazardly in the yards and yards of residents' houses around the rice fields cafe, which causes inconvenience to residents whose houses are used as parking spaces carelessly by visitors who travel at the rice fields cafe, so this problem resolved by means of a family approach, discussed well between the parking unit manager and residents whose house area is used as a parking lot, 52 so parking fees can be withdrawn by the owner of the house whose yard and yard are used as parking spaces, then reciprocal is the solution to this problem, bucket l a mutually beneficial relationship between residents and parking unit managers. The main problem of this rice field cafe, as described above, is that residents violate rules regarding the establishment of permanent buildings that cannot be higher than one floor. 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