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Dissemination of Study Results on Rural-Urban Relations for Sustainable Development

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Article 33 Indonesia participates in dissemination of relationship study results rural-urban linkage which is a collaboration program between Coordinating Ministry for Human Development and Culture (Coordinating Ministry for Human Development and Culture) with Friedrich Ebert Stiftung (FES) and IPB University. This activity is carried out in a manner hybrid on Wednesday (08/03/2023). The aim of this dissemination activity is to open a space for discussion and input regarding the results of research carried out by FES and IPB University as researchers. This activity is the first stage of three stages that have been planned over a period of 3 years.

Nowadays, the gap between villages and cities has become one of the priorities of the Government, especially the Coordinating Ministry for Human Development and Culture in regional development to reduce disparities. This cannot be avoided, one of the reasons is due to massive urbanization from year to year. The inequality of buildings (facilities and infrastructure) causes urbanization to increase. This problem was also discovered by the Research Team, that development inequality between Villages and Cities is still high. Apart from that, the poverty rate in villages is getting higher based on BPS data as of September 2022, up 0.1% from 2021. The process of sending commodities from villages to cities is still inadequate, and the management and utilization of natural resources in villages is not yet optimal.

Scheme framework research based on spatial, economic and governmental approaches. Based on a spatial approach, the research took place in West Java, specifically in Indramayu Regency, Garut Regency and Bandung Regency. The process of determining the location is based on input from the Agriculture Service, Livestock Service, and West Java Province Fisheries Service. Likewise with the superior commodities studied by the Research Team based on input from the three West Java Provincial Services. Leading commodities are divided based on regional typology, namely regions Lowlands (lowland) with Uplands (plateau). Both the lowlands and highlands have major potential in the agricultural sector, such as rice and mango commodities in Indramayu Regency, and corn and potatoes in Garut Regency.

The economic approach is carried out with agribusiness performance, from upstream (on farm) – (off farm) downstream. Upstream, the majority of farmers use their own capital to start a business, there is also a small percentage of farmers who borrow from financial institutions, as well as cooperatives and banks. In the production department (on farm), land/livestock ownership status, the majority of which are owned by themselves, but some are on a rental or profit sharing system. In off farm, the majority of products at the village level are primary products (whole initial products), processing activities are usually carried out by industry or MSMEs located outside the village/city. The governance approach is carried out by investing in villages, as well as direct support such as coaching related to optimizing natural resources in the village. Apart from that, the role of the Village Government is still minimal regarding product development, with more of a role for the City/Regency, Provincial and Central Governments. In terms of the investment aspect, it can be carried out from village to city, divided into 4 analyses, namely (1) government budget-based investment, (2) industrial partnership-based investment, (3) market guarantee investment, and (4) product guarantee investment.

  1. Government Budget Based Investment
    The role of Regency to Central Government, in the form of assistance with facilities and infrastructure, to increase human resource capacity.
  2. Industrial Partnership Based Investment
    Industry partners with farmers in providing production facilities. Apart from that, it is also related to the flow of commodity trading between farmers and partnerships.
  3. Market Guarantee Investment
    Farmers or actors in agribusiness provide deposits in the form of money to obtain market guarantees. This occurs in an increasingly competitive arena for commodity marketing.
  4. Product Guarantee Investment
    Farmers or actors in agribusiness provide their products to companies (partners) who will later be paid after harvest.

Village-City relations can be established through marketing of commodities and production facilities, partnerships between business actors, business investment between actors, and development. Building these four things requires direct support from the Government, such as field assistants for planning, business direction for marketing, and developing the commodities produced so that they can provide added value (income). [MGCM]