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SBEW3173 RURAL ECONOMIC DEVELOPMENT

Comparative Study of Rural Economic Development

Lecturer :
Dr. Mohamad Fadhli Rashid
Prepared By : Dr. Khairul Hisyam Kamaruddin
Year 3 SBEWH
 DR. MOHAMAD FADHLI RASHID
GROUP OF MEMBERS

AZRIFAH IZZATI ANIS NAD

ELLYA FARAH ALANI ZAHRA

NU
AN R BRINA DHLY UMAIR
SA FA

SYAZA ZA
HIRA FAIZ ERMAN
H

2
Chapter 1.0
INTRODUCTION
1.1 Background of Comparative Report
1.2 Aim and Objectives of Report

3
 1.1
This study compares Desa Ketapang and Desa Ponggok, Indonesia,
to evaluate and enhance rural economic conditions.

FOCUS :

Economy Socioeconomy

Environmental Community
Sustainability Engagement

4
 1.2
AIM
To compare and analyze best practices, influencing factors,
and community impacts between two villages, providing
insights for sustainable rural development strategies.

OBJECTIVES
To identify best practices applied in community development in
each village studied.
To determine the factors that influence the best practices in the
villages.
To determine the impact on the community/physical of the villages.
To carry out a comparative study between two villages to
understand the similarities and differences in development
approaches and their effects.

5
Chapter 2.0
LITERATURE REVIEW
2.1 Based on Working Definition of Keywords
Characteristics
Best Practices
Factor
Impact

6
2.1 CHARACTERISTICS
The characteristics of rural areas—economy, demographics, human capital, and infrastructure—shape quality of life
and economic well-being. Understanding these aspects is key to effective rural development

Economy Human Capital

The rural economy relies on agriculture and Human capital, through education and skill
natural resources, with communities depending development, is vital for rural economic growth.
on farming, fishing, and related activities. It empowers communities, fosters innovation,
and strengthens resilience.

Demography Infrastructure
(population) Infrastructure supports rural development by
enabling economic activities. Improved roads
Demographics, including population size, boost market access, while utilities like electricity
composition, and migration, impact rural and water enhance living conditions and drives
development. rural economic growth.

7
BEST PRACTICES IN MALAYSIA , INDONESIA & THAILAND
Kampung Peruas Ulu Dong, Raub DESA Wisata Nglanggeran, Gunungkidul,
Pahang Yogyakarta
Traditional village located in Mukim Ulu Dong, Raub Located in the Gunung Kidul Regency of the
district, Pahang, Yogyakarta Special Region in Indonesia.
Surrounded by a hilly rainforest reserve rich in Desa Wisata Nglanggeran, translated as
natural resources such as flora, fauna, rocks, rivers, Nglanggeran Tourism Village, is known for its efforts
and the Lata Jarum waterfall to promote cultural and eco-tourism.
Main economic activities of the village are
agriculture and tourism. SUCCESS FACTOR
Natural Resources
SUCCESS FACTOR Local Products and Crafts
Natural Resources Community empowerment
Cultural Heritage and Community Traditions
Entrepreneurships

Source: Google Image,

2024

8
BEST PRACTICES IN MALAYSIA , INDONESIA & THAILAND
Ban Khiriwong's Village In Nakhon Si Thammarat, Thailand

located in Nakhon Si Thammarat, Thailand is a sustainable village known for its natural beauty
and eco-friendly practices.

Its economy is based on agriculture, producing tropical fruits using environmentally friendly
methods, traditional handicrafts and ecotourism.

SUCCESS FACTOR

Sustainable Agriculture
Cultural Preservation and Handicrafts
Natural Tourism Resources
Figure x.x : xx Figure x.x : xx

Source: Google Image,

2024

9
Chapter 3.0
PROFILE OF VILLAGES
3.1 Location, Demography and Sosioeconomy
of Village
3.2 Village’s Administration Structure
3.3 Village Asset and Resources
3.4 Village Main and Supporting Economy

10
 3.1
Desa Ketapang

located within Ketapang Regency in

West Kalimantan, Indonesia.

POPULATION 4808 residents

ECONOMIC ACTIVITIES

Map 1 : Map of Desa Ketapang

Agriculture Fishing LEGEND:

Petani Padi Organik Al-Barokah

Road

River

Well known for its agricultural activity and Boundary Desa Ketapang

captivating scenery. 11
 DESA PONGGOK
Located in Polanharjo Subdistrict,
Klaten Regency, Central Java,
Indonesia

POPULATION

1,488 residents

ECONOMIC ACTIVITIES

Map 2 : Map of Desa Ponggok Location Agriculture Fishing Tourism

LEGEND:
Water Gong
Umbul
Pusur

GreenHouse
Ponggok

Kantor Desa
Road

River
Ponggok offers excellent accessibility for
domestic and international tourists.
Ponggok Boundary Desa
Ponggok Ponggok
Paradeso

BUMDesa Tira
Mandiri 12
 3.2 VILLAGE’S ADMINISTRATION STRUCTURE
DESA PONGGOK
DESA KETAPANG
Ahmad Khat i bul Umam H.Junaedhi Mulyono,
S.H
Head of vi l l age
admi ni st r at or Head of Village
Administrator

Ahmad Kamal I r f an
Yani Setyadi
Zamzami

Vi l l age Secr et ar y Village Secretary

Ratih Ayu Ratnawati, Wahyu Sri Handayani

2 4 6 Ira Hermawati, S.E Laskar Rahmatullah
S.P
Head of The
Head of Gener al and Head of Government Head of The Welfare Head of Financial
Head of Wel f ar e Sect i on Head of Pl anni ng Af f ai r s Administration and
Admi ni st r at i ve Af f ai r s Office Department Department General Department

1 3 5

Head of Gover nment Anidia Yuni Stevani Sunarno

Head of Ser vi ce Sect i on Head of Fi nanci al Af f ai r s
Sect i on
Head of Service Head of Planning
Department Department

1 2 3

Andra Adriansyah M,
Head of Haml et i Head of Haml et i i Head of Haml et i i i Sugeng Raharjo
S.Sos

Village Head 1 Village Head 2

13
 3.2 VILLAGE’S ADMINISTRATION STRUCTURE
DESA KETAPANG DESA PONGGOK
PETANI PADI ORGANIK AL-BAROKAH BUMDES TIRTA MANDIRI

Drs. Mustofa H.Junaedhi Mulyono, S.H

Leader Head of Village

Administrator

H. Muslih Maksum Muhammad Hendrik Vidyanto

Vice Leader BUMDES Director

H. Basirun Mas’ud Arif Burhan

SIE
Treasurer Secretary
Sutrisno Kintan Khoirunisa

BUMDES Treasurer BUMDES Secretary

Maskuri Nur Azis Ahmad Royani Sopri N Fiqriyah Supinah Rondiyah

Budi Santoso Suyantoko Arum Setya Rini

Production Input Warehouse Training and Education Women' s Empowerment Head of Trade and Head of Marketing Head of Financial
Services Department Department

Taufiqurrohman Cahaya Rahayu

Mahmudi Mustofa Jawadi Aditya
Warnoto
Financial Staff
IoT ( Internet of Things) Organic Rice Processing Marketing

14
3.3 VILLAGE’S ASSET AND RESOURCES
DESA KETAPANG Agricultural Land
Desa Ketapang has fertile land
and 316 hectares of paddy fields.

Rice is a long-term food

source for future generations.

Pertanian Padi Organik Al Barokah

practices organic rice farming.

Source: Field work, Supports sustainable agriculture

2024
and provides jobs for all ages.

Agricultural Technology

Map 1 : Map of Desa Ketapang

LEGEND:
Petani Padi Organik Al-Barokah

Road

River
Source: Field work, Source: Field work,
Boundary Desa Ketapang
2024 2024
The village uses Internet of Things (IoT) to monitor rice fields.
Solar system for street lighting at night, making roads safer for
villagers. 15
3.3 VILLAGE’S ASSET AND RESOURCES
DESA PONGGOK
1.Water Spring

01 Iconic water springs (umbul): Umbul Ponggok,

Umbul Besuki, Umbul Sigedang, Kapiller
02 Transformed into popular tourist destinations

03 Organized by local groups (Pokdarwis, Pokja)

b ulPonggo
Um Field work, k Source: Field work,
l Sigedan
2024 mbu
Source:
LEGEND:
Water Gong
2024 U g
Umbul
Pusur

GreenHouse Road
Ponggok
River
Kantor Desa
Ponggok Boundary Desa
Ponggok Ponggok
Paradeso

BUMDesa Tira
Mandiri

Um i
b ul Besuk
3 RESOURCES Water Spring Aquaculture Aqriculture Source: Google Image,
2024

16
3.3 VILLAGE’S ASSET AND RESOURCES
DESA PONGGOK
2.Aquaculture 3.Agriculture

01 High-quality mineral water ideal for aquaculture 01 Fertile soil and abundant irrigation water

02 Specializes in tilapia farming (ikan nila) 02 Optimal conditions for rice cultivation

03 Provides additional income 03

Potential for comprehensive development with
government support

ddy worker
Ikan Nila farmer pa s pad
dy field
fish

Source: Google Image, Source: Google Image,

2024 2024

Aquaculture sector Agriculture sector

17
3.4 VILLAGE’S MAIN AND SUPPORTING ECONOMY
DESA KETAPANG
MAIN ECONOMY
1) RICE FARMING
Fertile soil and abundant irrigation water
Optimal conditions for rice cultivation
Potential for comprehensive development with
government support

Source: Field work, Source: Field work,

2024 2024

2)FARMING
Fertile soil and abundant irrigation water
Optimal conditions for rice cultivation
Potential for comprehensive development with
government support

Source: Field work,

2024

18
3.4 VILLAGE’S MAIN AND SUPPORTING ECONOMY
DESA KETAPANG
MAIN ECONOMY
SUPPORTING ECONOMY
1) RICE FARMING 1) MICRO, SMALL, AND MEDIUM ENTERPRISES
Paguyuban Petani Al- (UMKM)
Barokah focuses on Small grocery shops
organic rice farming. ("toko kelontong") in
26 hectares of certified Desa Ketapang are run
organic land and 45 by local residents.
hectares transitioning They provide essential
to semi-organic. goods and are part of
UMKMs.
2)FARMING Livestock farming in Desa These businesses
Ketapang includes cattle, support the local
goats, and chickens. economy and create
Managed by local employment
residents as a primary opportunities.
income source.
strengthens local food
resilience

19
3.4 VILLAGE’S MAIN AND SUPPORTING ECONOMY
DESA PONGGOK
MAIN ECONOMY SUPPORTING ECONOMY
1) ECO - TOURISM (NATURAL SPRINGS AND 1) LOCAL ENTREPRENEURSHIP
WATER-BASED ACTIVITIES)
Tourism boosts food stalls
Main source of
and photo rentals in Desa
income for the village.
Ponggok.
Generated through
entrance fees,
2) CREATIVE INDUSTRIES
equipment rentals,
and local businesses creative businesses and
around the spring. showcases culture through
2) AQUACULTURE Javanese dance, gamelan,
Utilizes natural springs for and wayang kulit.
aquaculture. 3)COMMUNITY
Focuses on species like
COOPERATIVE (BUMDES)
catfish, tilapia, and carp.
Springs provide clean, Desa Ponggok’s BUMDes
oxygen-rich water for boosts growth through
optimal fish growth. tourism, fisheries, and
agriculture.

20
Chapter 4.0
STUDY METHODS
4.1 Study Approach
4.2 Method of Data Collection
4.3 Method of Data Analysis

21
 4.1 STUDY APPROACH 4.2 METHOD OF DATA COLLECTION
STAGE 01
PRELIMINARY STUDY AND DESK STUDY Various sources, such as journals, articles, reports, and books.
LITERATURE
Identify & explore challenges, history, REVIEW
culture, and progress.
Questionnaires were given to village leaders to gather information on their
Collect existing data and information from
local economies and development practices using both closed and open-
secondary resources.
ended questions.
Identify success factors. QUESTIONNAIRE

Semi-structured interviews were held with village administrators and

STAGE 02 economic operators to gain deeper insights and support the questionnaire
SITE VISIT : DATA COLLECTION
data.
INTERVIEWS
Conducting interviews
Field research activities such as surveys Direct observation was conducted at [specify location or situation] to
and observation. understand the actual conditions and gather visual and contextual data
Identify issues and recommendations. not captured by other methods.
OBSERVATION
Analyzing development issues and
problems.

STAGE 03 4.3 METHOD OF DATA ANALYSIS

PREPARATION OF A COMPARATIVE REPORT
ON RURAL ECONOMIC DEVELOPMENT
Prepare vision, mission & objectives of the
report. Qualitative Quantitative
Analyze data from field research. SWOT Percentage
State results & findings from analysis. DESCRIPTIVE MEAN
22
Chapter 5.0
STUDY ANALYSIS & FINDINGS
5.1 Study’s Comparative Framework
5.2 Socio-Economy
5.3 Economy (spider web) section C
5.4 Community Involvement & Culture (spider web)
5.5 Environmental Sustainability (spider web)
5.6 Impact (bar chart)
5.7 SWOT Analysis
5.8 Best Practices

23
 Desa Ketapang Desa Ponggok Desa Ketapang Desa Ponggok
Agricultural benefits Community engagement
4.00 Agricultural potential 5.00
Economic satisfaction
Social harmony 4.00 Community initiatives
3.00

Volunteer management Fisheries potential 3.00

2.00
2.00
1.00
1.00

Income satisfaction 0.00 Tourism potential Awareness level 0.00 Security level

Community involvement Job opportunities

Skills and expertise Job opportunities

Business income Other sector potential

Resource management Hygiene level

5.1 STUDY’S COMPARATIVE FRAMEWORK
This section explains the process of comparing the economic conditions of Desa Ketapang and Desa
Ponggok, providing a clear overview of the analysis from beginning to end.
STUDY’S COMPARATIVE
FRAMEWORK

DESA KETAPANG DESA PONGGOK

FACTORS THAT AFFECT VILLAGE ECONOMIC GROWTH

Village (desa) Characteristics

Comparative analysis of Ketapang and ponggok villages based on factors

SOCIO-ECONOMIC FACTORS ECONOMIC FACTORS COMMUNITY & CULTURAL FACTORS ENVIRONMENTAL SUSTAINABILITY
Main Economy FACTORS
Types of Occupations P otential Economy Community Participation Natural Environment assets
Household Income Economic Management Community activities Resource Management
Government Assistance Trust and Norms C ontribution of natural resources
Role of culture in the economy
Cultural Asset

ECONOMIC IMPACT
Analysis of benefits derived from the impact of
the local economy

SWOT ANALYSIS
Overall analysis of study findings from
factors

ECONOMIC BEST PRACTICES

Identify the best economic practices of Desa
Ketapang and Desa Ponggok supported by the 24
spider
study web analysis
findings
5.2 SOCIO ECONOMY
This analysis compares the economic growth of Desa Ketapang and Desa Ponggok by examining key
factors like income, employment, and social well-being, using bar charts for clarity.

Income Status (IDR) Types of Work of the Respondent

1-5 juta 6-10 juta 1-5 juta 6-10 juta >11 juta 1-5 juta
1-5 juta 6-10 juta

6-10 juta
29%

>11 juta
38%

1-5 juta
6-10 juta 1-5 juta
50%
50% 50%

1-5 juta
71%
1-5 juta
6-10 juta
100%
12%

Desa Ketapang Desa Ponggok Desa Ketapang Desa Ponggok

24
 ECONOMY
5.3 This study uses a spiderweb questionnaire to assess community views on key economic sectors in
Desa Ketapang and Desa Ponggok. It identifies each sector's strengths, weaknesses, and potential.

Desa Ketapang Desa Ponggok

Agriculture Activities
4.00
Economic management Agriculture potential

3.00

Volunteer groups Fisheries Activities

2.00

1.00

Income Sources 0.00 Tourism Activities

Community involvement Job Opportunites

Bussiness activities Sectors that have potential

Natural resources
24
spider web analysis
5.4 COMMUNITY INVOLVEMENT
This study explores how community involvement, cultural practices, and factors like security and
social harmony drive economic resilience and development in rural areas like Desa Ketapang and
Desa Ponggok.
Desa Ketapang Desa Ponggok
Community engagement
5.00

Harmony in society 4.00 Community activities

3.00

2.00

1.00

Level of Awareness 0.00 Level of security

Skills and expertise Job opportunities

Hygiene level
spider web analysis 25
 CULTURE
Desa Ketapang Desa Ponggok
Desa Ketapang Desa Ponggok

Desa Ponggok
45.4%
Desa Ponggok
48.5% Desa Ketapang
Desa Ketapang
51.5%
54.6%

The use of traditional crafts as tourism products has a positive

Traditional knowledge such as farming techniques and way of life impact on the economy of the local community
are still well practiced by the community
pie chart
pie chart

26
5.5 ENVIRONMENTAL SUSTAINABILITY
Environmental sustainability is vital in rural areas to balance economic development with
ecological preservation by managing tourism, conserving resources, and controlling pollution,
ensuring long-term resilience and harmony between communities and nature.

Desa Ketapang Desa Ponggok

Community Knowledge
5.00

4.00
Tourism development Tourism Positive Impact
3.00

2.00

1.00

0.00

Pollution controlled Community reduce negative impact of tourism

Natural Resources Tourism Program 27

spider web analysis
 5.6 IMPACT
Desa Ketapang Desa Ponggok
Average 5
Question
Desa Ketapang Desa Ponggok

1. The practice of cultural customs 4

in the field of agriculture and
tourism has a positive influence on
social relations between the older
4.5 4.5
generation and the younger
generation in this society. 3

2. Modernity in this society erodes

traditional practices in agriculture 2.8 3.6
and tourism. 2

3. The use of environmentally

friendly agricultural techniques
contributes to environmental 4.7 4.6
conservation. 1

0
Question 1 Question 2 Question 3

bar chart
28
5.7 SWOT ANALYSIS

Strengths Weaknesses Strengths Weaknesses

1. Strong Agricultural
1. Limited Economic
Policy
Dependence 1. Local awareness on
1. The Great Water Resources
2. High traditional environtment sustainability
2. Low income
knowledge 2. Community Involvement
2. Water Pollution Concerns
3. Limited Job Opportunity
3. Community
Involvements

DESA DESA
KETAPANG PONGGOK
Opportunities Threats
Opportunities Threats

1. Adoption of Sustainable 1. Environmental

Practice Challenges 1. Tourism Expansion 1. Water pollution

2. Fertile soil resources 2. Use of chemical steel 2. Job Opportunity 2. Carring capacity

29
 5.8 BEST PRACTICES
DESA KETAPANG DESA PONGGOK
Sustainable Farming
Uses organic fertilizers, bio-pesticides, and crop Sustainable Tourism Development
rotation for soil health. Uses organic fertilizers, bio-pesticides, and crop
Reduces environmental impact and supports rotation to maintain soil health.
sustainable farming. Reduces environmental impact and supports long-
Protects local ecosystems for long-term term farming.
agricultural viability. Protects local ecosystems.

Technology Integration Sustainable Hospitality and Services

Precision irrigation systems improve efficiency. Precision irrigation systems improve efficiency.
Post-harvest storage facilities reduce losses. Post-harvest storage facilities reduce losses.
Both ensure better yields and profits. Both ensure better yields and profits.

Post-Harvest Management
Use sun-drying and mechanical drying to reduce Ecotourism and Natural Resource Management
moisture in harvested crops. Protect and maintain local natural attractions
Helps prevent spoilage and maintain quality, (beaches, forests, lakes).
especially for paddy. Introduce guidelines for responsible visitor behavior.

Value-Added Products Tourism Infrastructure Development

Precision irrigation systems improve efficiency. Visitor Centers provide information on attractions,
Post-harvest storage facilities reduce losses. culture, and sustainable tourism.
Both ensure better yields and profits. Serve as hubs for tour bookings and equipment
rentals.
30
Chapter 6.0
CONCLUSION & WAY FORWARD
6.1 Conclusion
6.2 Way Forward

31
6.1 CONCLUSION 6.2 WAY FORWARD
Desa Ketapang and Desa Ponggok demonstrate
Adapting the Ketapang and Ponggok Village methodologies
sustainable economic practices through local potential and to the local Malaysian environment is the next step that may
community empowerment. Desa Ketapang focuses on be adopted in rural development in Malaysia based on best
organic agriculture, blending traditions with modern practices from Ponggok and Ketapang village. The following
methods like IoT and organic fertilizer production. Desa are the key ways forward that can be applied in Malaysia:
Ponggok develops water-based tourism, creating jobs and
boosting the local economy. Both emphasize resource Harnessing Local Economic Growth Potential
Community Inclusivity and Empowerment
sustainability, innovation, and community participation for
Community-Based Tourism Growth
economic growth and improved living standards.
Natural Resource Management and Sustainability
Digitalization and Use of Technology
Using Rural Products to Empowering Local Businesses

By implementing this strategy, Rural Economic Development

Malaysia can promote more inclusive and sustainable rural
economic development by utilizing the knowledge and
achievements of Ketapang and Ponggok Village.

32
33
5.7 SWOT ANALYSIS

Strengths Weaknesses
Economic Diversification Income inequality
Tourism Potential Lower satisfaction with economic
Commuinty Engagement management
Strong emphasis on skills development Modernization challenges

SWOT

Opportunities Threats
Tourism expansion Environmental challenges
Adoption of sustainable practices Dependency on tourism
Strengthening the fisheries sector Impacts of modernization on traditional
customs
5.7 SWOT ANALYSIS

Strengths Weaknesses Strengths Weaknesses

xx xx xx xx

DESA DESA
KETAPANG PONGGOK
Opportunities Threats Opportunities Threats
xx xx xx
xx