IMPLEMENTING PRODUCTIVE ECONOMIC ACTIVITIES FOR THE POOR BASED ON SOCIAL CAPITAL

• Main Authors: Dijan RAHAJUNI, Lilis Siti BADRIAH, Ascaryan RAFINDA
• Format: Article
• Language: English
• Published: Romanian Foundation for Business Intelligence 2019-05-01
• Series: SEA: Practical Application of Science
• Subjects: PNPM-M; Social Capital; Local wisdom; ZMET; Connector construct
• Online Access: http://seaopenresearch.eu/Journals/articles/SPAS_19_6.pdf

The aim of the Indonesian government in the economic field is to advance public welfare. The Program Nasional Pemberdayaan Masyarkat Mandiri (PNPM-M) or Community Empowerment National Program which covered 2007 - 2014, succeeded in reducing poverty in rural and urban areas, but still left problems unsolved including leaving revolving funds in the hands of the community, a high level of community dependence on loan funds scrolling, more than 50% of beneficiaries utilizing revolving loan funds for consumption. In an effort to realize prosperity, efforts should be made to divert the use of loan funds from consumption to productive activities. The socio-economic limitations of the poor are obstacles to productive economic activities. Social capital which is local wisdom in the community include trusts, rules (norms), and networks (networking) and can be used as a means to increase the independence and welfare of the community. The analysis used the ZMET model and obtained the construct connector to increase the economic productivity of the poor, namely: getting to know each other, helping each other, cooperating, or obeying the rules. Willingness to learn, cohesiveness, consistency, correct information or continuous activities come as natural consequences.