Village Innovation Program: Steps For Community Sustainability

As we know, most of Indonesia's territory consists of rural areas. For this reason, the welfare of rural communities and the growth of the village economy have become important targets in supporting national development. One of the government's efforts in this direction is the Village Innovation Program (PID).

So, what is the Village Innovation Program, and how does it help villages across Indonesia become more innovative, independent, and sustainable?

Read on to learn more about the program and Astra's role in supporting it.

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A Quick Look at the Background of the Village Innovation Program

The Village Innovation Program (PID) is an initiative launched by the Ministry of Villages, Development of Disadvantaged Regions, and Transmigration (Kemendes PDTT) to optimize rural development through the Village Funds (Dana Desa) and make their use more effective.

Over the years, many villages have still been unable to manage Village Funds effectively and efficiently to improve their communities' welfare. One main factor is the considerable development gap, in both infrastructure and competencies, between rural and urban areas.

The Village Innovation Program (PID) was established to promote balanced development by channeling funds that enable rural communities to innovate independently. These innovations are expected to provide both direct and indirect benefits, helping villages become more advanced and prosperous.

In summary, the Village Innovation Program (PID) strengthens each village's ability to plan and implement its own development, supporting the government's goal to improve rural welfare.

The program focuses on three main areas, including developing the local economy and entrepreneurship, improving human resource quality, and providing rural infrastructure.

The Main Goals of the Village Innovation Program

Based on the Decree of the Minister of Villages, Development of Disadvantaged Regions, and Transmigration (KepmenDesa PDTT) No. 48 of 2018, the Village Innovation Program (PID) aims to encourage village development that is higher in quality, more effective, and more efficient through a range of development and community empowerment activities that are more innovative and more responsive to local needs.

This initiative aims to sustainably increase rural productivity and economic growth, supporting socioeconomic welfare and self-reliance.

The Benefits of the Village Innovation Program

The Village Innovation Program (PID) offers several key benefits for rural communities and village development, including the following:

1. Unlocking the Potential of Natural Resources (SDA) and Human Resources (SDM)

The Village Innovation Program (PID) enables more focused, structured, and measurable training and education for communities.

This approach helps individuals gain the knowledge and skills needed to develop their potential and utilize local natural resources.

As a result, new jobs are created, and unique village products are developed.

2. Improving Community Welfare

As rural communities become more innovative, they advance and become more empowered, leading to higher incomes.

Increased income raises purchasing power and strengthens the local economy, helping communities better meet basic needs such as clothing, food, and shelter.

3. Boosting Village-Generated Revenue

As the rural economy improves, village-generated revenue increases, enabling the government and community to collaborate more effectively on development.

This continuity enables faster, more focused, and more comprehensive village development across various sectors. Over time, villages may achieve independent status.

The Challenges of the Village Innovation Program

Despite its opportunities, the Village Innovation Program (PID) also faces several challenges.

The following obstacles can hinder a village's progress toward innovation and self-reliance:

1. Limited Human Resource (SDM) Capacity

A primary challenge is the limited capacity of human resources, affecting both village officials and the broader community.

Many village officials lack the skills to manage assistance and design effective programs for utilizing the village budget.

Rural communities also often lack the knowledge and skills needed to participate fully in managing and overseeing village funds.

2. Minimal Technology Adoption

Another obstacle is limited technology adoption, which reduces competitiveness and slows the growth of promising village industries.

For example, adopting technology-based farming could significantly increase agricultural productivity.

3. A Focus on Physical Development

Village governments often focus too heavily on physical infrastructure development.

While adequate infrastructure is essential, especially in remote areas, it is important to balance physical and non-physical development.

Astra's Steps to Help Build Innovative Villages

Although the Village Innovation Program (PID) is a government initiative, building innovative, self-reliant, and prosperous villages requires collaboration beyond the state.

As a corporation that holds firmly to sustainable systems and its vision of Sejahtera Bersama Bangsa (Prosperity with the Nation), Astra has been and will continue to be committed to empowering communities, especially in rural areas.

Astra's flagship programs, including Desa Sejahtera Astra (DSA), Kampung Berseri Astra (KBA), and Mentari Bronang, are designed to deliver tangible, positive impacts for innovative village development.

1. Desa Sejahtera Astra (DSA)

Desa Sejahtera Astra (DSA) empowers entrepreneurship by leveraging each village's potential and signature products, focusing on agriculture and its processed goods, marine and fisheries, and tourism, crafts, and culture.

Since it began in 2018, the program has achieved a great deal in helping rural communities innovate and tap into local potential. One example is the export of 770 kilograms of andaliman spice, worth IDR 455 million, from DSA Samosir to Germany and France.

As of 2024, Desa Sejahtera Astra (DSA) has established 468 Export Villages, created 3,272 new jobs, increased average community income by up to 86.11%, and achieved an export valuation of IDR 349 billion.

2. Kampung Berseri Astra(KBA)

Kampung Berseri Astra (KBA) is a community-based program that integrates Astra's four pillars of sustainable social contribution within a single village, aiming to create a clean, healthy, smart, and productive environment.

As of 2024, Astra has supported a total of 1,515 DSA and KBA communities spread across Indonesia.

3. Mentari Bronang

Mentari Bronang, a PT Tuah Turangga Agung initiative, develops integrated farming systems to transition communities from shifting cultivation to sustainable farmland management. The program supports the Dayak Ngaju community in Barunang Village in strengthening food security and protecting the environment.

So far, Mentari Bronang has made a real impact on 221 direct beneficiaries and 884 food security beneficiaries, resulting in an increased income from IDR 1,045,000 to IDR 4,300,000 per person.

ALSO READ: Desa Sejahtera Astra & Kampung Berseri Astra, Astra's CSR in Action

Astra and Communities Building Prosperous, Innovative Villages Together

The Village Innovation Program (PID) shows that innovation is an essential key to achieving a prosperous life amid increasingly rapid development, not only for city dwellers but for rural communities as well.

Through initiatives like Desa Sejahtera Astra (DSA), Kampung Berseri Astra (KBA), and Mentari Bronang, Astra works alongside the government to build innovative villages and empower local communities.

To learn more about Astra's strategic and sustainable programs, please refer to the Astra Sustainability Report.