Astra's Village Development Program, Initiatives for Community Wellbeing

Village development is a critical lever for advancing economic equality and improving quality of life across Indonesia.

As the smallest unit within the country's territorial structure, villages play a strategic role, serving as centres of food production, custodians of local wisdom, and stewards of the surrounding ecosystem.

In Indonesia, a wide range of stakeholders are now joining forces to accelerate progress in rural areas through various empowerment programs.

One initiative that is delivering tangible impact is Astra's contribution to mentoring village communities, empowering residents to grow and compete on a global stage.

Interested in learning more about the strategic steps shaping this village development effort? Read on for the full breakdown.

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What Is Village Development?

According to Article 78, Paragraph (1) of Law Number 6 of 2014, village development is defined as a planned effort to improve the wellbeing and quality of life of village communities, while also addressing poverty.

This goal is achieved through a needs-based assessment of the community, including:  

• Improving the quality of and access to basic services.
• Building and maintaining infrastructure that aligns with the village's capabilities and potential.
• Developing the agricultural economy to be more productive.
• Leveraging appropriate technologies to support the village economy.
• Maintaining order and security in the village environment in line with community needs.
  
  

Why Village Development Matters in Indonesia

Village development is essential because villages form the most fundamental layer of the national structure. Here are several reasons why it should be a priority.

• Equitable National Economic Growth: Villages are centres of food production and natural resources. By developing villages, the government can reduce economic inequality, ensuring that capital circulation is not concentrated solely in major cities.
• Reducing the Pull of Urban Migration: Strong village development creates broader employment opportunities. With more local options, younger generations are not forced to migrate to cities to earn a living.
• Food and Energy Security: Most of the country's agricultural and renewable energy potential lies in its villages. With proper management, villages can become primary providers of food while also supporting clean energy use.
• Preserving Social and Cultural Values: Sustainable village development can support economic and technological progress without erasing local identity; in fact, it can strengthen the unique character of each community.
  
  

Astra's Role in Sustainable Village Development in Indonesia

Inclusive village development is not the responsibility of government alone; it requires meaningful collaboration across multiple stakeholders.

As part of its sustainability commitment, Astra continues to empower rural communities and support social wellbeing across four key pillars: Health, Education, Environment, and Entrepreneurship.

These initiatives are designed to deliver both immediate benefits and long-term impact for village communities across various regions of Indonesia, with several key achievements as follows.

1. Transforming Dayak Ngaju Agriculture in Barunang, Central Kalimantan

Through the Mentari Bronang program, PT Tuah Turangga Agung is supporting communities in transitioning from shifting cultivation to settled, more environmentally responsible farming practices.

This shift has proven highly effective in strengthening food security for 884 beneficiaries while significantly increasing household income, from IDR 1,045,000 to IDR 4,300,000 per person.

Beyond its economic impact, the program has helped reduce deforestation by 442 hectares, with a Social Return on Investment (SROI) of 2.34, directly contributing to lower carbon emissions in the region.

2. Exporting Andaliman Spice from Samosir to Germany and France

Through the Desa Sejahtera Astra (DSA) program, local entrepreneurs are being supported to scale up their businesses, to the point of being able to enter global markets.

One tangible result is the export of Andaliman spice from Samosir, North Sumatra, which has successfully entered the European market. A total of 770 kilograms of andaliman has been shipped to Germany and France, with a total transaction value of IDR 455,000,000.

This success demonstrates that village potential in North Sumatra can be highly competitive on the international stage when supported by the right mentoring and quality standards.

3. Global Expansion of Indragiri Hilir Coconut Products and Blitar Djembe Drums

Beyond Andaliman, Astra has also supported other flagship village products in reaching international markets through strategic partnerships. Processed coconut products from Indragiri Hilir and djembe drums from Blitar are notable examples of this successful expansion.

A total of 3,500 djembe drums have been successfully exported to China, while processed coconut products have also entered global markets. Across these various initiatives, the total trade value generated has reached IDR 47,600,000,000.

Astra's Recognition and Awards in Village Development

Astra's commitment to empowering village communities not only delivers tangible impact for residents; it has also earned recognition from various external bodies. Among the awards Astra has received are:

• Company Change the World for the Desa Sejahtera Astra (DSA) program at The Fortune Indonesia Summit (FIS) 2024.
• Winner in the "Relations with Local Communities, Desa Sejahtera Astra, Rural Community Development Program" category at the Lestari Awards 2024.
• PT Astra International Tbk: Winner in the "Large Corporation through the Desa Sejahtera Astra Program" category at the Indonesia SDGs Action Awards.
  
  

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Building Community Wellbeing Through Astra's Sustainable Collaboration

These are just some of the steps and village development initiatives delivering tangible impact for communities across Indonesia.

Astra firmly believes that sustainable village development can only be achieved through strong collaboration with government, local communities, and strategic partners.

Every program is designed to ensure that each initiative delivers a meaningful impact on the lives of broader communities.

The implementation evaluation conducted in 2024 indicates that well-planned programs are capable of creating more independent and competitive communities.

For those interested in exploring the success metrics and sustainability strategies behind these community empowerment efforts in greater depth, the full information is available through the Astra Sustainability Report.