International Journal of Economics, Commerce and Management

United Kingdom Vol. VI, Issue 11, November 2018

http://ijecm.co.uk/ ISSN 2348 0386

INCREASING INCOME FOR COMMUNITIES IN LUBUK KERTANG

VILLAGE THROUGH VILLAGE-BASED BUSINESS ENTERPRISES
(BUMDES) BASED ON MANGROVE ECOTOURISM

Rahima Br Purba
Department of Accounting, Faculty of Social Sciences
Universitas Pembangunan Panca Budi, Medan, North Sumatera, Indonesia
rahima@dosen.pancabudi.ac.id

Farid Aulia
Universitas Al Azhar, Medan, North Sumatera, Indonesia

Handriyani Dwilita
Department of Accounting, Faculty of Social Sciences
Universitas Pembangunan Panca Budi, Medan, North Sumatera, Indonesia

Ulfa Nadra
Universitas Al Azhar, Medan, North Sumatera, Indonesia

Abstract
In Indonesia, villages have the smallest areas and are often associated with people living in a
low economic level, and they are considered not to have the ability to explore and develop the
potential of resources in their villages. However, that perception is not generally accepted. For
rural communities and stakeholders who have advanced thinking, they can accept innovations
for the advancement of their village, for example, the idea of establishing a Village-Based
Business Enterprises (Bumdes). Also, manage it. The results of the first assessment, the
researchers evaluated that Bumdes in Lubuk Kertang Village, Brandan Barat Sub-district,
Langkat Regency was apparently not managed according to the existing natural resource
potential. We found that the potential for mangrove ecotourism is still being managed
individually and has not been held by village business units such as Bumdes. The purpose of

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this research is to analyze the potential of mangrove ecotourism which can advance Bumdes to
encourage village economic improvement. The source of this field research data comes from
primary data and secondary data. Primary data were obtained through in-depth interviews,
distributed questionnaires and participant observation. Furthermore, data acquisition and
assessment were sharpened with focus group discussions to capture information about the
development of Bumdes. The result found that the emergence of community knowledge about
managing mangroves conservatively is derived from the community learning process that
originates from the introduction of conservative values transformed by stakeholders. The people
who live in the coastal area of Lubuk Kertang Village have the biggest potential of BUMDES
through the management of mangrove ecotourism. The existence of mangrove ecotourism has
not been able to integrate into the management of BUMDES. The efforts of the village
government to integrate mangrove ecotourism management into the BUMDES in Lubuk
Kertang, but still constrained by the approval of the mangrove management group The Lubuk
Kertang Village Government is still trying to discuss and find solutions to cover mangrove
management under the coordination of BUMDES in Lubuk Kertang.

Keywords: Village-Based Business Enterprises, Bumdes, Innovation, Mangrove Ecotourism,

Community, Income

INTRODUCTION
The government always improves the standard of living of the people in all regions in Indonesia
(Umar, Usman, & Purba, 2018). Along with this, the Government has launched a variety of work
programs to anticipate increasing poverty in the community (Newman, Raine, & Skelcher, 2001;
Platteau, 2015; Purba, 2017). However, the work program is considered still not to touch the
root of the real problem. The government is considered a failure to open a profile of poverty
social, economic and cultural characteristics as well as characteristics from a demographic
perspective (Newman et al., 2001; Purba, Dwilita, & Nadra, 2018; Purba, 2017). For example,
the level of education, how to get health facilities, the number of family members, how to get
clean water and others. The government is considered to have failed to find a poverty profile
from economic characteristics such as sources of income, consumption patterns and many
dependencies (Bayes, 2001). Therefore, all policies and empowerment programs are still
considered to play an essential role in fighting poverty (Umar et al., 2018).

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The recommendation is the basis for changing and abandoning a top-down poverty settlement
model to move into a bottom-up model which will involve local resources(Purba et al., 2018).
One segmentation of this research is the empowerment of village officials and stakeholders to
build local resources to become productive village assets in order to increase the economic
level of the village(Purba et al., 2018; Sutiyo, 2017). Lubuk Kertang Village as a coastal village
which has a large potential of mangrove forest resources with an area of more than 64 hectares.
The latest study by (Basyumi, Bimantara, Selamet, & Thoha, 2016; Purba et al., 2018)indicates
that mangrove ecotourism, Lubuk Kertang Village has not participatory involved the village
community as a subject to develop the potential of mangrove ecotourism. Village communities
do not yet commit that mangrove forests can be managed by village-based business enterprises
(BUMDES) based on the principles of empowerment(Purba et al., 2018; Purba, 2017).

Purpose of the study

1. To identify the forms of mangrove ecotourism management that are utilized in the
economic life of the village.

2. To analyze mangrove ecotourism which can be utilized in the development of BUMDES

in order to improve the village economy.

3. To analyze the linkages of socio-economic and socio-cultural conditions of the

community to the improvement of the village economy.

4. To find a development model for mangrove ecotourism-based BUMDES in enhancing

the independence of sustainable rural economies

RESEARCH METHOD
The Study
The method that used in this research emphasized in the process, so the tracer of data and
information diachronically will do to know and to understand comprehensively and holistic about
forms of local wisdom that used for increasing the people's level of the economy (Nasution,
I.Irawan;, & Rossanty., 2018; Purba et al., 2018). Remind the essential of a qualitative method
in emic view “the peoples as subject”, the data were got just the way they are (Moleong, 2000;
Nasution et al., 2018). The research location was at Lubuk Kertang Village, Brandan Barat Sub-
district, Langkat Regency. The choice of research location decided on the location place that
has ecotourism potential of mangrove that can be managed to BUMDES on increasing the
village economy improvement.

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Determination of Informants and Research Samples

The informants in this study included key informants who were considered able to provide a lot
of information needed in this study. Additional informants are likely to increase as long as they
are considered to provide information relevant to the research objectives. There are no
restrictions on the number of informants, as long as the data needed has answered the purpose
of this study.

Data collection
The data collected is sourced from primary data and secondary data sources. Primary data was
obtained through in-depth interviews, questionnaires, and participant observation, which aims to
capture information about local forms of wisdom in improving the village economy, also
sharpened by focus group discussions. FGD is used to get the BUMDES development model
through the use of mangrove ecotourism in order to improve the economy of rural communities
that are applicable and possible to be developed in the context of sustainable management.

FINDINGS AND DISCUSSION

The Dynamics of Mangrove Forest Management
The extent of the palm farming that doing by converting the mangrove forest, not only damage
the mangrove forest but it damages all the forest assets (Aulia, 2003) that so valuable and can
change the forest's landscape totally at Brandan Barat Sub-district. This damage was worse
with water resistant to palm farming and close the river way, so the salty water cannot across
the palm farming. The convert of mangrove forest to palm farming cause the degradation of
mangrove forest area that significantly shown by the loss of mangrove forest area; flood caused
by no water resisted, and threated people because the benefit of mangrove forest not only for
the sea lives, such as prawn, fish, etc. but also for the fisherman that have occupation to catch
the fish and prawn(Aulia, 2003, 2017; Basyumi et al., 2016).
The mangrove that existing at Lubuk Kertang Village today are still in good condition,
although there is decreasing in width of land. The mangrove land, has been changed to palm
farming and some of it becomes the palm farming and oil mining area, then some government
onus, the mangrove land were sold to the palm farming entrepreneur. Besides that, the
mangrove land was decreased by people that cutting the trees become charcoals. The unique is
peoples who stoles the mangrove trees was stranger from another village. Now, the mangrove
stolen were decreasing(Basyumi et al., 2016). The people of Lubuk Kertang Village are starting
plant mangrove that had been damaged since 2012. The entering of Yayasan Gajah Sumatera
“Yagasu" as a foundation that was advising the peoples of Lubuk Kertang Village. Yagasu

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presents in Lubuk Kertang Village to give the education about the importance of mangrove to
people's living(Aulia, 2017; Purba et al., 2018).

The Opportunity of BUMDES Based on Mangrove Ecotourism

BUMDES as an instrument to push the people's economy has not fully yet become the
understanding in an economic actor of local and village(Purba et al., 2018). Finally, BUMDES
must be the starting capital of social movement of economic fighting was not maximally
reaching a target. The people's village awareness about their position in order to reach the
village to be the economy central has not become a goal yet (Shortall, 2004). BUMDES
presents as a form to organize the village people to increase their spirit in order to strengthen
and develop the economy(Purba et al., 2018). BUMDES can be the form to share with some
village people's groups to increase the quality and quantity of product and describe the
developing strategy.
BUMDES slowly becomes the center for them if there are any problems with their
business. The togetherness can increase and develop the economic effort of the village through
BUMDES was one of ideal concept in the field. They can explore the potentials; human
resources and natural resources and develop the network to make the connection to push the
economy of the village's people(Kusuma & Purnamasari, 2016).
Nowadays, the BUMDES Lubuk Kertang that managed by people of village works in 3
sectors: photocopy, the electricity payment and save and debt services. These three units were
managed by BUMDES formed with people discussion in 2015. The businesses units managed
with the easy way with some restricted of money and human resources. It has no AD/ART yet
and the right mechanism, so in its growth has stagnation to expand the business. The disabled
of BUMDES in managed the mangrove business groups that have to operate their ecotourism
business because they have no operational mechanism and the law force in ecotourism
management.(Holden, 2013; Shortall, 2004)
From the data, three groups of mangrove management have the different side of
management: Mekar Group, Lestari Mangrove Group, and Bakau Emas Group. Nowadays, only
Mekar Group manages mangrove as ecotourism. The management of mangrove ecotourism
that doing by Mekar Group based on the group. This group has an authority of managed, gave
by Ministry of Forestry to manage mangrove. Until now, the research has no integration with
BUMDES to develop the business units. Mekar Group was only giving the dividend to
Government Village Rp. 300.000,-/ month.
The first analysis in this research showed that mangrove ecotourism was the biggest
potential in developing business unit under BUMDES(Aulia, 2003; Purba et al., 2018). With the

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limitations of this managing. Mekar Group can get the earning from mangrove ecotourism of
Lubuk Kertang Rp. 14.000.000 to Rp. 40.000.000, per-month. If the managing of mangrove
ecotourism can increase in human resources, the gross domestic income will increase. The
management policy that applied by Mekar Group based on sharing earning that had been
discussed. The spirit of sharing earning and benefit in ecotourism management of mangrove
ecotourism Lubuk Kertang can be the embryo that integrated into BUMDES management(Aulia,
2003, 2017; Purba et al., 2018).

Draft Development Model for Village-Based Business Enterprises (BUMDES)

in Lubuk Kertang Village

1. Growing stage

Existing Condition Development Strategy

 Already have Bumdes  Determine the potential and

 Still do not really understand the choose the type of business that is
philosophy of Bumdes by the potential resources
 Still unable to compile the AD / available in LubukKertang Village,
ART and the Raperdes to form one of which is mangrove tourism
Bumdes management.
 Still unable to identify potential  Arrange AD / ART by mechanisms
and choose business types that are in line with Bumdes

 Business units have been formed governance.

but income has not been stable  Develop organizational structure

and assessment for professional
and accountable human
resources.
 Establish Bumdes management in
managing and discussing business
and market production

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2. Strengthening Stages

Existing Condition Development Strategy

 Business units have been running,  Feasibility study of business plan

income has started to stabilize and strategic design of Bumdes
and income trends have increased management
from year to year  Prepare a work plan and annual
 Managers are starting to have budget of Bumdes
trouble managing the rapid growth  Organize and manage assets for
of Bumdes business unit revenue more productive.
 Managers need to get  Administration and personal
management training (Plan-Do- management
Check-Action Competencies)  Proportional financial recording
 The manager has difficulty and reporting
compiling business plans and  Performance evaluation and
business planning reviewer

 Managers have obstacles in

preparing performance reports

3. Developing Stages

Existing Condition Development Strategy

 Business units have developed.  Establish a third party business

 BEP Operations have been entity and cooperation.
achieved.  Aspects of taxation and marketing,
 Improve community welfare. branding, networking and
 Need to open new business units. cooperation across Bumdes.

 More and more cooperation offers.

 Need to motivate one of them is to
use IT technology

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CONCLUSION
1. The people’s knowledge about mangrove management conservatively getting from the
people learning a process that comes from the introduction of conservatives values that
transformed by interest maker.
2. People that living at the seashore of Lubuk Kertang Village has BUMDES potential
through mangrove ecotourism.
3. The mangrove ecotourism that existing now still cannot be integrated under BUMDES
management.

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