Potential of Social Capital and Village Development in Order to

Implementation of Law Number 6 Year 2014 on Village in North

Sumatera

Badaruddin

, Ermansyah

and Bisru Hafi

Department of Sociology, The Faculty of Social and Political Sciences, Universitas Sumatera Utara, Jl. Dr. A Sofyan

No.1 Kampus USU Medan 20155, Indonesia

Department of Social Anthropology, The Faculty of Social and Political Sciences, Universitas Sumatera Utara, Jl. Dr. A

Sofyan No.1 Kampus USU Medan 20155, Indonesia

Keywords: Development, Village Community Empowerment, Social Capital, Law No. 6 Year 2014 on the Village.

Abstract: Awareness and mutual willingness to progress and prosperity of the village will only emerge if the existing

potential capital of social capital can be utilized and accumulated in such a way through village

management and village development. Such social capital provision is part of local wisdom. This study aims

to identify the potential of social capital owned by villagers, especially those related to elements of trust.

The findings of this study are expected to contribute in realizing the successful implementation of Law No.

6 Year 2014 About the Village, where the potential of social capital can be utilized in conducting village

community empowerment. The approach used in this research is a combination of qualitative and

quantitative approaches. The study was conducted in 5 villages located in five districts in North Sumatera

Province. Source of qualitative data obtained by in-depth interview technique to informant, while

quantitative data obtained through serve into 250 respondents. In general, every village studied has the

potential of social capital, especially the elements of mutual trust, both in the informal community and in

formal community relations. The potential of social capital of value, such as trust is also strong enough at

the village level, and it is very supportive for village development efforts, especially those related to the

empowerment of rural communities as mandated in Law No. 6 of 2014 on Villages. The potential of social

capital found in research can contribute to supporting rural development when utilized and utilized properly.

1 INTRODUCTION

Village Law No. 6 of 2014 which requires the

central government to allocate village funds will be

able to reduce village gaps if the Village

Government and Village Communities are able to

utilize it well. Conversely, if the village management

is not done well, it is not impossible that the

opposite happens, the village will be more lagging

behind the progress of the city, even very likely the

conflicts in the village.

In Law No. 6 Year 2014 on the Village

mentioned that one that must be done by the village

government is to empower the village community.

In the Act, the empowerment of rural communities is

defined as an effort to develop the independence and

welfare of the community by increasing knowledge,

attitude, skills, behavior, ability, awareness and

utilizing resources through the establishment of

policies, programs, activities and assistance in

accordance with the essence of the problems and

priorities needs of the village community. As an

individual his knowledge needs to be enhanced, his

awareness, his skills in viewing opportunities and

potential resources in the village so as to be

beneficial for the welfare of himself and his family.

As the community needs to be increased awareness

and ability to organize with the aim to be able to

jointly overcome and deal with all the problems of

life that exist in the midst of village communities.

When carefully traced, in fact the villagers in the

past have a socio-cultural mechanism that can solve

the various problems of life that exist in the midst of

the village community, which we are now familiar

with local wisdom for local communities. Local

wisdom according Sibarani (2012) is the value of

local culture that can be utilized to manage the life

1450

Badaruddin, ., Ermansyah, . and Haﬁ, B.

Potential of Social Capital and Village Development in Order to Implementation of Law Number 6 Year 2014 on Village in North Sumatera.

DOI: 10.5220/0010081914501456

In Proceedings of the International Conference of Science, Technology, Engineering, Environmental and Ramiﬁcation Researches (ICOSTEERR 2018) - Research in Industry 4.0, pages

1450-1456

ISBN: 978-989-758-449-7

of society wisely or wisely. Furthermore, it is

mentioned that local wisdom belongs to the

community whose attitude and personality are

mature to be able to develop local potentials and

resources in making change for the better. But today,

local wisdom is fading along with the process of

modernization and globalisation that continue to hit

our society including rural communities.

Efforts to revitalize local wisdom become

important to be done so that the village development

process does not deprive the socio-cultural values of

local communities. Village Law No. 14 Year 2014

will only be implemented properly if there is

awareness and willingness together (villagers -

village officials - external forces) for village

prosperity and prosperity. The awareness and mutual

willingness to progress and the welfare of the village

will only emerge when the existing elements of

social capital can be utilized and accumulated in

such a way through village management and village

development. The result of Badaruddin's research

(2006) found that the success of Polongan Dua

Residents in Rao Sub-District, Pasaman District of

West Sumatera, builds collective cooperation of

rubber sale of auction system based on the

availability and ability of local people to utilize and

accumulate social capital. This research tries to

identify the potency of social capital possessed by

rural community especially related with element of

social capital of trust. Fukuyama (1995) mentions

that trust is the core element of social capital.

2 LITERATURE REVIEW

Ostrom (1992) uses the concept of social capital to

highlight the phenomenon of development in Third

World Countries. In his study using this concept of

social capital, Ostrom noted that development using

social capital showed better success rates, so he

concluded that social capital is one of the

prerequisites for the success of a development

program. Meanwhile, Woolcock and Narayan (2000)

mention that social capital is formed from norms and

networks that can enhance togetherness

(collectivity).

Associated with the organizational phenomenon,

Rose (1999) in her research in Russia found that

social capital is a key element for the working of

informal organizations in society as an alternative to

formal organization. Rose's findings show that social

capital is an important prerequisite for

organizational success. The Village Act of 2014

shows explicitly the formal village organization as

part of the Implementation of the Act. In addition,

the Village Act in 2014 also requires the growth of

informal organizations in the village as a support for

the emergence of good governance in village

government.

If the results of studies and research findings

from Ostrom and Rose are linked to this research

plan, the implementation of the Village Act 2014

should also be colored by the working of social

capital in the process of organizing such formal

organizations as village administrations (village

heads and village apparatus as well as Village

Consultative Bodies) as well as informal

organizations such as recitation associations, Union

Help Society (STM) and others. Elements of social

capital must also be present in the village

development program for the success of the

development. Puspitasari (2012) states that in

relation to efforts to increase the development and

economic independence of the community turned

out to be a necessity to be addressed holistically,

especially for policy makers by utilizing all the

potential that exists including the potential of social

capital of society. It further mentioned that the

empowerment of society by involving cultural

dimension and utilizing the role of social capital in

society can optimize the result of empowerment

process.

Putnam and Fukuyama who develop social

capital according to Spellerberg (1997) put forward

a different definition of social capital, but the

definition of both has a close relationship. Putnam

defines social capital as the appearance of social

organizations such as networks and trusts that

facilitate coordination and cooperation for mutual

benefit. While Fukuyama defines social capital as an

ability arising from the existence of trust in a

community. Fukuyama (1995) also mentions that the

core element of social capital is (trust).

The study using social capital concept in the

phenomenon of community empowerment was also

conducted by Badaruddin (2006) who studied about

"Social Capital and Development of Social Capital

Transmission Model in Efforts to Increase Family

Welfare (Study on Three Rubber Farmers

Community in Rao Sub-district of Pasaman District

of West Sumatera)" . From the results of the

reserach it was found that "the rubber sale

organization with auction system in the village was

formed due to the availability of social capital in the

village, and the ability of the local community to

utilize and utilize social capital. The findings of

Badaruddin's research reinforce Putnam's (1993)

conclusion that the elements of social capital (trust,

Potential of Social Capital and Village Development in Order to Implementation of Law Number 6 Year 2014 on Village in North Sumatera

1451

norm, and social network) tend to be self-reinforcing

and cumulative, meaning that the social capital stock

will grow (cumulative) when used .

Research on Badaruddin (2009) on "The Social

Capital of Social Capital (Alternative Social Capital)

Implementation Model in North Sumatra (Study on

Three Corporates: BUMN, PMDN, and PMA)"

found that CSR implementation by corporates has

not fully utilized social capital, which has an impact

on the outcome of the CSR program. From the

results of research conducted offered an alternative

model of CSR implementation based on social

capital through "Collaboration Work Model" as

shown in Figure 1.

Figure 1: Collaboration Work Model for Community

Empowerment Through Corporate Social Responsibility

(CSR) Program Utilizing Social Capital

The World Bank as one of the world's major

financial institutions that channel aid, especially to

third world countries, is also interested in the results

of studies that use the concept of social capital (see

Dasgupta and Serageldin, 1999). The World Bank

defines social capital as the norms and social

relationships inherent in the social structure of

society that is able to coordinate actions in achieving

the goals.

From the results of a study done by several

scholars, Lubis (2002) came to the conclusion that

social capital has core elements that include: (1)

trust, which includes honesty, fairness,

egalitarianism, tolerance and generosity; (2) social

networks, which include participations, reciprocity,

solidarity, collaboration / cooperation, and equity;

(3) institutions, which include shared values, norms

and sanctions, and rules.

Various studies using the above social capital

concept provide guidance that development

(including rural development) should also utilize the

potential of existing social capital for the successful

development of the village itself. Law No. 6 Year

2014 About Villages that have a passion for the

welfare of the village community should be

implemented properly and correctly.

3 RESEARCH METHODS

The research design used in this research is a

combination of qualitative and quantitative approach

with combination model used dominant-less

dominant design (Creswell, 1994; Badaruddin,

2017). Primary data were obtained through in-depth

interview techniques and observations for qualitative

approaches. To obtain information that is really

accurate triangulation technique done. As for the

quantitative approach, primary data is collected

through survey techniques by distributing a semi

open ended questionary.

The population of this study is the families who

are in the study location. The size of the research

sample from the family group was determined by 50

heads of households from each village studied so

that the total sample was 250 families. For

qualitative data, the source of data comes from

informants. The informants in this study are village

government officials (village head, village secretary,

head of the Village Consultative Institution), adat

leaders, and religious leaders). The research was

conducted in 5 villages located in five districts in

North Sumatera Province, namely 1) Karang Anyar

Village, Sicanggang District, Langkat Regency; 2)

Lubuk Bayas Village, Perbaungan District, Serdang

Bedagai Regency; 3) Pematang Sidamanik Village,

Sidamanik District, Simalungun Regency; 4) Muara

Purba Nauli Village, Batang Angkola District,

Tapanuli Selatan Regency; and 5) Sei Kamah II

Village, Sei Dadap District, Asahan Regency.

4 RESULTS AND DISCUSSION

The results of this study discusses the respondents'

assessment of the potential of social capital owned

by the village community, especially those related to

the "trust" element. Assessment of potential social

capital is used to capture the potential of social

capital owned by five villages in five districts in

North Sumatera Province. With this assessment, it

will get quantitative data about the types of social

capital potential contained in each of the villages

studied that can be utilized for community

ICOSTEERR 2018 - International Conference of Science, Technology, Engineering, Environmental and Ramiﬁcation Researches

1452

empowerment in the framework of village

development to support the successful

implementation of Law No. 6 Year 2014 About the

Village.

4.1 Social Capital in the Form of Trust

(Trust)

As Fukuyama (1995) explained that belief is the

hope that grows in a society which is shown by the

existence of honest, organized and cooperative

behavior based on shared norms. In societies with

high levels of trust, social rules tend to be positive,

relationships are also cooperative. This condition

illustrates that there are many forms of interaction

based on trust in public relations. As a step to

identify the structure of social capital relationships,

Putnam (1988) then distinguishes social capital into

two forms of relationship between informal and

formal relationships. Informal relationships are

relationships that occur between family, relatives,

friends and neighbors, while formal relationships

exist in associations, groups and so on.

4.1.1 Trust in Informal Communities

Relationships

Putnam (1995) mentions that one that promotes

social capital is neighbourhood networks which is

social engagement. This neighbourhood relationship

can be a visit to each other between friends and

neighbors, social participation in the form of

activities in public spaces such as meetings in

recitation together, collect money together (arisan,

meeting between hamlets/village (huta) and so forth.

Research shows that the majority of respondents

provide agreed ratings (63.6%) and even strongly

agree (23.2%) that neighbors and people in the

neighborhood where they live can be trusted. Only a

small proportion of respondents (3.2%) of 250

respondents rated that they disagreed with the

statement that neighbors and people in their

neighborhood were trustworthy. The remaining 25

respondents (10%) gave a hesitant assessment.

Although the number is small, only about 13.2% of

respondents disagree and hesitate, but this illustrates

that in today's village society has grown the seeds of

crisis of trust with fellow neighbors or people who

live around them. This is very rare in the past village

communities where social cohesion is still strong

enough due to the interdependence and mutual need

of each other that is still very strong.

In addition to indicators of trust with neighbors,

this dimension of social capital (trust) can also be

seen from indicators of mutual trust among ethnic

groups. There is a tendency that people will be more

confident in their ethnicity than people outside of

their ethnicity.

The results showed as many as 120 respondents

(48%) agreed to the statement that they believe more

people who have the same ethnic with him. Then

another 33 respondents (13.2%) also gave a strongly

agreed assessment, that they trusted more people

with the same ethnicity as themselves. The rest of 69

respondents (27.6%) gave disagreement and strongly

disagreed with the statement of trusting people who

had the same ethnicity as themselves. Other

respondents gave a hesitant assessment of the

statement as many as 28 respondents (11.2%). This

finding illustrates that ethnic backgrounds have

become an important measure of the villagers' sense

of trust in others, neighbors, and so on. Although the

majority of respondents (61.2%) believe more in

people of one ethnicity, yet still large enough

respondents are still in doubt and disagree that only

the ethnic credentials can be trusted. That is, the

trust between people is still strong enough in the five

villages studied, although the villagers are

heterogeneous in terms of ethnicity. In general,

ethnic groups in the research villages are relatively

homogeneous, so the potential of social capital for

mutual trust elements will be greater.

In addition to their own ethnic beliefs, trust with

a religious person is also part of an assessment of the

potential of social capital in society. The research

findings show that most respondents (78.4%) agree

and strongly agree that the same religious

background is a measure of the emergence of the

village community's trust. The rest gave a

disagreement assessment of 43 respondents (17.2%)

and hesitant as much as 11 respondents (4.4%). This

data indicates that the same aspect of religious

background is the measure of the emergence of a

relationship of trust in the community of the five

villages studied. In research villages where 100% of

the population are Moslems, then for the indicators

of mutual trust with people who are religionists do

not become a problem in doing social relations in the

midst of society. When linked to earlier findings of

mutual trust with ethnic peers, then the judgment

that the credible is on the basis of religion is greater

than on an ethnic basis.

Neighbors are the ones closest to the daily lives

of the villagers. Thus, neighbors also become an

important part to see how the potential of social

capital that exist in the village community,

especially those related to trust. The results of the

study indicate that as many as 188 respondents

Potential of Social Capital and Village Development in Order to Implementation of Law Number 6 Year 2014 on Village in North Sumatera

1453

(75.2%) gave an agreed assessment and strongly

agreed that they believed their neighbors would not

hurt or intend badly on them. Only 20 respondents

(8%) of the 250 respondents rated disagree and 42

respondents (16.8%) gave a hesitant assessment of

the statement. The findings of this study illustrate

that in general, respondents have a high degree of

confidence in the neighbors.

The trust of the villagers is also demonstrated by

the trust indicators in borrowing and lending money

to the needy neighbors. The results showed that most

respondents (69.2%) gave an assessment that

residents in the neighborhood where they live still

trust each other in borrowing or lending money. The

total of 23.6% of other respondents gave a hesitant

assessment with the statement that residents in the

neighborhood where they live still trust each other in

borrowing or lending money. The rest, as many as

7.2% of respondents gave an unapproved assessment

of this statement. These findings illustrate that the

mutual trust associated with borrowing and

borrowing money is still strong enough in almost all

of the studied villages, but findings that indicate the

existence of doubt, even some who do not believe, is

a "signal" that elements of social trust capital, as

well has begun to experience problems at the village

level. This was reinforced by one informant who

mentioned:

"... in a village of trust with neighbors

is not what it used to be. In the past

we were very confident with

everyone, because we believe that the

person is always honest, including

when our neighbors borrow money.

But nowadays, new people want to

lend money if it is already very

confident with the person. Because

there is already a case in this village,

people are so doomed because of debt

The information reinforces quantitative data

which indicates that social capital in the villages

studied, in particular the elements of mutual trust,

although still strong enough, has shifted. Villagers

are not to blame if there are people who owe, but not

given, if the villagers judge that the person has

dishonest nature. This is in contrast to past

conditions, where there will be social sanction for

the village's rich who do not want to lend to villagers

with financial difficulties.

Villagers in running their lives often experience

difficulties. To overcome this someone would need

help from others. This study found that as many as

51.6% of respondents stated that while in an

emergency or need help, relatives or family is the

first person to be contacted by respondents to be

asked for help. Furthermore, the respondent who

states that the neighbor is the first person to be asked

for help is as much as 41.2,5%. Respondents who

asked for help to friends as much as 2.8%, to the

village government as much as 2%, to the

chairman/members of the group/association as much

as 0.4% and as much as 1% of respondents said

nobody helped or did not know. These findings

indicate that relatives are still the primary choice to

be asked for help in the event of urgent emergency,

followed by choice to neighbors. This indicates that

the neighboring relationships of the villagers studied

are still quite strong. This finding is in line with the

results of interviews with informants who

mentioned:

"... because the people in this

village generally still have relatives with

some villagers in this village, so if there

is an urgent need will usually ask for

help to fellow relatives, but neighbors

are also usually will quickly help if

there are neighbors who need help ".

The relationship of neighbourhood still fairly

well maintained in the five villages studied. This is a

potential social capital that can be utilized in village

development, especially related to village

community empowerment programs.

Villagers and village elites are generally people

who can be trusted by villagers. Who of the village's

most reliable figures and village elites can differ

from one another. The study found that the Village

Head became the most respected and trusted by the

respondents, as many as 137 respondents (54.8%).

The religious figure is the second most trusted figure

of the citizens, as many as 110 respondents (44%).

The remaining 3 respondents (1,2) declare obedience

and believe in traditional leaders rather than to

village heads and religious leaders. The findings of

this research actually have a relationship with the

Village Head election system directly by the

population, where the Head of the Village is elected

based on the majority vote. The current Chief of

Village is the result of the direct election which has

the most votes. That is, the choice of village heads

by some villagers illustrates that they believe and are

willing to abide by their chosen village elders. The

low choice of indigenous leaders is due more to the

ICOSTEERR 2018 - International Conference of Science, Technology, Engineering, Environmental and Ramiﬁcation Researches

1454

circumstances in which the five villages examined

by the role of ethnic leaders are no longer significant

in the life of the community.

4.1.2 Trust in Formal Communities

Relationships

Putnam defines social capital as a mutual trust value

between community members and society towards

its leader. This trust can be seen from some, among

others (1) how high the level of public participation

to the courage to argue with the leader; and (2) how

many citizens use the opportunity to channel their

aspirations. Related to this, the study found that

most respondents (68.8%) agreed and strongly

agreed with the statement that villagers were

involved in designing/planning development

programs in their villages. Only a small portion

(10.4%) of the respondents stated that they did not

agree with the statement that villages were involved

in designing/planning development programs. The

remaining 20.8% of respondents gave a hesitant

assessment of the statement.

In relation to the inclusion of villagers in the

implementation of development, most (71.2%) of

respondents considered that villagers had been

involved in the implementation of village

development. Only 12.8% of respondents gave a

disagreeable assessment of whether villagers had

been involved in the implementation of village

development. The rest, as many as 16% of other

respondents gave hesitant statements. Theoretically,

if the citizens have been involved in the village

development planning process and also involved in

the implementation, then development is expected to

produce good development.

This study is also in line with the theoretical

view, where most (72.8%) of the respondents

considered that the development program run by the

village government apparatus is going well and in

accordance with the villagers' wishes, the remaining

11.6% strongly disagree that the development

program run by the village government apparatus is

already running well and in accordance with the

wishes of the village community. Respondents who

gave a hesitant assessment of this statement were

15.6%.

Quantitative findings of this study indicate that

the level of community participation in rural

development in the five villages studied showed a

fairly good figure according to the perception

(assessment) of respondents. The findings are also in

line with the respondent's view that the Village

Government Officials have managed the village

development program well, and the programs are in

accordance with the wishes of the people.

Theoretically, participation will increase when

community members are involved in the

development process, from the planning,

implementation and evaluation phases.

Musrenbangdes which becomes a forum for

community participation in development planning

will be a means that can increase community

participation when used properly and properly.

5 CONCLUSIONS

In general, every village studied has the potential of

social capital, especially the elements of mutual

trust, both in the informal community and in formal

community relations. The potential of social capital

of value, such as trust is also strong enough at the

village level, and it is very supportive for village

development efforts, especially those related to the

empowerment of rural communities as mandated in

Law No. 6 of 2014 on Villages. The potential of

social capital found in research can contribute to

supporting rural development when utilized and

utilized properly.

ACKNOWLEDMENTS

The authors gratefully acknowledge that the present

research is supported by Ministry of Research and

Technology and Higher Education Republic of

Indonesia. The support is under the research grant

DRPM-Kemristekdikti of Year 2018 Contract

Number 189/UN5.2.3.1/PPM/KP-DRPM/2018.

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