PORTALJABAR, BANDUNG CITY - A social innovation model that is considered capable of being a solution to encourage rural development in Indonesia. This model guides rural development based on its potential.

These are the results of research by the Head of the Association of Business Economic Journalists (IWEB) Yulistyne Kasumaningrum at the open session of Economics and Business (FEB) doctoral candidates, Faculty of Padjadjaran University (Unpad) in the MM FEB Unpad Hall, Bandung City, Monday (12/2/2024).

Research Yulistyne, who is familiarly called Tine, raised research entitled "Social Innovation Model for Rural Development-(Case Study of Village-Owned Enterprises in West Java)". Research promoted by Prof. Yudi Azis as chairman, as well as the team of promoters Dr. Kurniawan Saefullah and Dr. Adiatma Yudistira M. Siregar.

Yulistyne said that villages have an important role in encouraging Indonesia's progress in realizing a Golden Indonesia 2045. However, villages are still faced with various classic challenges, including poverty and wide disparities, as well as less than optimal utilization of natural resource potential.

Village-Owned Enterprises (BUMDes), he added, could be potential actors in accelerating village development. However, the role of BUMDes, especially in West Java, is still not considered optimal.

"The results of this research highlight the importance of social innovation as a key factor in rural development, namely by utilizing neo-endogenous strategies to generate economic value while meeting community needs," he said.

Social innovation, according to him, is activities, practices and approaches that help society achieve goals that were previously unfulfilled or unrealized. Social innovation places greater emphasis on utilizing existing potential, including the problems faced by the community, without having to imitate the development of other regional villages.

According to Tine, to use a social innovation model, several factors need to be supported. These include cross-sector collaboration and leadership.

The research results show that social innovation is able to improve BUMDes performance, strengthen cross-sector collaboration and leadership. However, there are still challenges such as a decrease in social capital and restrictions on the use of ICT in rural areas.

“Social innovation in rural areas is closely related to the local context. "Rural Indonesia is rich in geographic diversity, culture and local knowledge," he said.

Therefore, the results of this research recommend support from the central government, regional government, and village government in improving the performance of BUMDes through capital facilitation, technical assistance, and leadership development.

Apart from that, support from historians and industry is also needed to optimize local potential and improve the performance of BUMDes.

Thus, this research not only provides new insights in the academic realm, but also provides practical recommendations for encouraging rural development through social innovation and BUMDes performance.

"BUMDes performance can be improved by paying attention to economic performance through additional business units or initiatives to utilize local potential that has not been explored," said Tine.

Meanwhile, improving non-economic performance, added Tine, can be done through implementing activities aimed at community empowerment, for example providing free health services, training in financial management and taxation, training on planting patterns, post-harvest technology.

Chief Promoter Prof. Yudi Azis said that this research was also part of an effort to contribute to solving social problems. Especially in relation to rural areas, through innovation management science to produce theory and knowledge about social innovation.

"The resulting findings, apart from providing new insights in the academic realm regarding social innovation, are also expected to be able to make a real contribution in encouraging the development of BUMDes and accelerating the village economy," he said. (no/rdp*)