E-Commerce on Tourism Village Development

Aflit Nuryulia Praswati, Farid Wajdi, and Muzakar Isa

Management, Faculty of Economics and Busines, Universitas Muhammadiyah Surakarta, Indonesia

Keywords: Village Tourism, E-Commerce

Abstract: Entrepreneurs who actively conduct e-commerce has a wider sales area when compared to the use of

promotions through offline. Currently, Indonesia is actively improving the quality of tourism services.

Tourism development is also not separated from e-commerce as a marketing strategy. Indonesia seeks to

raise local wisdom as a tourist attraction. Research village, management of tourism facilities and

infrastructure, tourist attractions, marketing management governance is also continuously improved. The

village of Kenep Sukoharjo is a village that is proclaimed as a tourist destination. This tourist village is

constantly arranging well from the management of tourism, facilities, tour packages, tourism facilities and

infrastructure. The purpose of this study is to describe the potential of Kenep village as a tourist destination

and the application of e-commerce tourism in the village of Kenep. This research method using descriptive

qualitative method. After survey activities, interviews and observations, it was found that Kenep village has

started to use e-commerce in promoting its tourism potential. Village tourism promotion is done through

youtube videos, social media, websites or blogs. This tourist village has organized a race tour event read

poetry. Tour managers who are accommodated by the Sadar Wisata Group (Pokdarwis), start promoting

tourist villages through social media, coverage of tourism potential through printed newspapers or on line,

television media has also been done. Visitors who come are still limited to residents around Sukoharjo

District, such as elementary school students, junior high school and high school. Several times a visit from

private college students in Sukoharjo District. For further research can analyze the impact of e-commerce.

1 INTRODUCTION

The value of UMKM exports grew by 9.29% or

equivalent to 182 billion rupiah in 2013. 86.33%

Indonesian SMEs capitalize independence (Rahmini,

2017). The development of small industry and

household activities and trade activities very rapidly

as a community effort in meeting the needs of life.

Such activities are carried out within the household

due to limited capital to rent premises for industrial

activities and trade. The Government of Indonesia,

especially the Ministry of Cooperatives and Micro

Small Medium Enterprises (MSME) is currently

inviting the community to be creative in developing

small micro enterprises in order to develop

entrepreneurship. People both rural and urban,

ranging from young to old age many who run the

home industry. The empowerment and development

of UMKM is an effort taken by the Indonesian

government to overcome unemployment and

poverty. The government can provide support in the

form of training, improving facilities and

infrastructure, easy access to information on

developing UMKM (Ariani and Utomo, 2017). One

of the problems faced by Small and Medium

Enterprises (SMEs) is a marketing problem, in

addition to issues concerning the aspect of legality

and capital. For that Small and Medium Enterprises

(SMEs) must be smart to seek new breakthroughs in

marketing their products. One solution is that SMEs

need to adopt internet media (e-commerce) is now

considered more effective than conventional

marketing (Dewi, 2011). E-commerce is a form of

use of Information and Communication Technology

(ICT) to shift the principle of product oriented to

market oriented. ICT can facilitate SMEs in

marketing their products (Elsandra and Yulianto,

2013).

Business transactions through the Internet is a

new business phenomenon. One of the benefits of

internet as a means of introducing and marketing

products or services. The perpetrators of SMEs need

to find a new breakthrough in order to increase sales

Praswati, A., Wajdi, F. and Isa, M.

EÂ

a-Commerce On Tourism Village Development.

DOI: 10.5220/0007538601210127

In Proceedings of the 2nd International Conference Postgraduate School (ICPS 2018), pages 121-127

ISBN: 978-989-758-348-3

121

turnover. Currently the most effective marketing for

culinary gamers is through local gift shops.

However, with space that is not so wide, making

each brand of culinary products typical souvenirs

must compete from the packaging. Previous research

has found that e-commerce adoption by SMEs is still

low compared to large companies (Lizda, 2007).

Kenep Village Sukoharjo District has many

potential creative industries. Most of the residents

have various businesses in the field of batik

handicrafts, flower crafts or ornamental plants,

herbal medicinal processing, cosmetics, crackers,

and processed traditional foods such as wingko,

jadah, diamonds and jenang. Jenang processing

entrepreneurs consist of 22 business units.

Processing jenang business still uses traditional

methods from production to marketing. Production

using wood burning stoves, stirred with man-

operated wood, leaf-packing, and marketed directly

in nearby markets, namely Weru Market and

Tawangsari Market. Jenang sales competition

centered on both markets makes entrepreneurs limit

the amount of production. To solve the problem of

limited marketing area, the method of marketing is

only by word of mouth alone, so the entrepreneur

needs to do marketing outside the two markets. The

method that can be done is the adoption of

marketing technology through the internet, so the

product can be known more widely and able to get

customers from outside the region. Since 2015

Kenep Village Sukoharjo regency began to promote

tourism services through the internet media but there

has been no identification and evaluation of how the

use of e-commerce in the development of the tourist

village. The purpose of the study is to describe the

use of e-commerce in the development of tourist

villages in Kenep Sukoharjo.

2 LITERATURE REVIEW

E-Commerce is any form of electronic transaction of

goods or services performed electronically (Jaidan,

2010). With this, there will be a faster, more

intensive, more cost-efficient relationship between

the company and its stakeholders. Business activities

that can be done with e-commerce such as marketing

activities, promotions, transactions, payments, and

other activities as the development of innovation in

business activities.

One form of information technology that can be

applied by SMEs to develop their business is to

adopt e-commerce. Cost, speed, and data handling

capacity determine the advantages of internet and

value for e-commerce (Ningtyas and Sunarko,

2011). Use of E-Commerce can speed up processing

time and reduce paper usage in workmanship from

design, production, delivery to reduce operational

costs as little as possible (Maulana, Susilo and

Riyadi, 2015).

Adoption of E-Commerce by small and medium

enterprises in Indonesia is influenced by several

factors perceived benefits are benefits of use,

technology readiness, innovation, IT experience and

IT skills. Various applications are developed from 3

(three) basic application categories are: 1. Discovery

is an application for information access (browsing

and information retrieval/searching) 2.

Communication i.e. e-mail, chat, newsgroup 3.

Collaboration is an application for collaboration

between individual/group, such as workflow

systems, screen sharing, visual teleconferencing,

group decision support systems (Augustine, 2007).

One of the media used to run e-commerce is the

internet. There are two supporting factors that cause

the Internet to grow faster in mediating e-

Commerce, namely (1) the internet has a very wide

range, cheap, fast, and easily accessible by the

public; (2) the internet uses electronic data as a

medium of delivery of messages/data so that it can

be done sending and receiving information easily

and concisely, both in the form of analogy and

digital electronic data. The development of the use

of online marketing media e-commerce is supported

by how far the level of trust owned by its users.

Consumer confidence in online shopping is based on

the expectation that merchants will engage in

generally accepted practices and be able to provide

promised products and services. E-commerce has an

important role in creating product competitiveness

because companies can create interaction activities

and sales promotion.

There are 3 methods of payment using e-

commerce, namely online processing credit card,

money transfer, and cash on delivery (Maulana,

Susilo and Riyadi, 2015). The diversity of payment

options makes e-commerce a superior position to

attract consumers. Thus, some benefits such as new

revenue streams, increasing market share, lowering

operating costs, widening reach, increasing customer

loyalty, can be achieved more easily. Of course not

be separated from the risks that may be faced, such

as fraud that resulted in financial losses, information

theft, service disruption resulting in loss of business

opportunities and access by unauthorized parties.

Adoption of E-commerce by MSMEs in

Indonesia is influenced by some of the perceived

factors of benefits, namely benefits of use,

ICPS 2018 - 2nd International Conference Postgraduate School

122

technological readiness, innovation, IT experience

and IT capabilities. The development of the use of

online marketing media that is e-commerce is

supported by how far the level of trust owned by

users. Consumer confidence in online shopping is

based on the expectation that merchants will engage

in generally accepted practices and be able to

provide promised products and services.

3 RESEARCH METHODS

This research is a qualitative descriptive research

with focus of research on describing the use of e-

commerce in developing tourist village in Kenep

Sukoharjo. The data search method uses primary

data through interview method, focused discussion

and questionnaire to informant with sample taken

from tourism service actor in Kenep Sukoharjo. To

obtain data on demography, the author uses the

method of searching documentation data.

Meanwhile, to obtain the description of non verbal

data used field observation method.

4 RESULTS AND DISCUSSION

Kenep Sukoharjo village is an area located in Kenep

Village Sukoharjo District Central Java Province

with an area of 282.1532 Ha. Overview of

geographical condition Kenep urban village is

located in the administrative boundary of northern

part of Combongan Village, south of Pojok Village,

Tawangsari District, east of Banmati Village and

west of Tangkisan Village, Tawangsari District. The

village of Kenep is divided into 3 areas, 9 Rukun

Warga, 29 Rukun Tetangga and 11 Kampung. The

villages in Kenep Village are Kampung

Kedunggudel, Kampong Krecekan, Kampung

Bangkekan, Kenep Village, Sri Sejahtera Housing,

Sabunan Village, Kampung Matungan, Krajan

Village, Soko Village, Kampung Karangtal and

Geneng Village. Kenep village distance to the

District Sukoharjo reach 7.5 km. Kenep village

distance to Sukoharjo regency reach 8.7 km. The

total population of Kenep Sukoharjo village reached

5055 people consisting of 2153 men and 2542

women (Sukoharjo in Figures, 2010).

Kenep village has many potentials that can be

managed to become a tourist destination. Potential

Kenep Village in the form of creative industries,

natural conditions, history and cultural kedaerahan.

Creative industry consists of batik-patterned textiles,

artificial ornamental plants, traditional food

handicrafts, herbs, and cosmetics. Natural conditions

are rice fields, plantations and Kalimati river.

History and culture such as old mosque, art studio

(murals, poetry, traditional keroncong song) and

burial area of Islamic religious figure.

Table 1: Number of Creative Industries as Tourism

Village Potential.

Kenep Creative Industry Units

Textile craft batik

patterned

Artificial decorative

plants

Traditional food 28

Herbal medicine 1

Natural cosmetics 1

Batik as Indonesia's cultural richness spread all

over the region. Batik patterned craft is also

available in Kenep Sukoharjo Village, Central Java

Indonesia. Batik typical area Kenep lifted the theme

Kedunggudel. Textile production process is divided

into three types namely batik tulis (hand-made

batik), batik cap (stamp batik), batik printing and

batik combination. Batik tulis (hand-made batik)

produced by the method of drawing on cloth using

canting tool. Batik cap that is using batik-patterned

stamp. This batik stamp made from copper. Batik

printing is batik which is produced using

technologically advanced machine. There are 10

units of batik textile industry in Kenep Village. Most

of the batik artisans in Kenep Village produce batik

tulis and batik cap. This textile craft has been

producing for more than 10 years.

Craft of ornamental plants has just developed

since 2017. Ornamental plants using wooden twigs

with a creative touch of flowers, fruits or leaves

made from plastic. Although relatively new but has

been in great demand by the public. Products sold

around Sukoharjo. Processed traditional food from

Kenep Village has been active since decades. One

entrepreneur Jenang Wito has been modeling for 57

years. The sweet taste and legit of jenang make this

food must be enjoyed by the visitors of Creative

Tourism Village Kenep Sukoharjo. In addition to

Mbah Wito there are still 20 more typical food

makers who become culinary tourism destination in

the village of Kenep. Industry of herbal beverage

processing also exist in Kenep Village. This herbs

herbal treatment has been certified by BPOM so that

it is safe for consumption.

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a-Commerce On Tourism Village Development

123

The old mosque located in Kedunggudel Village

Kenep Sukoharjo subdistrict is named Masjid

Darussalam. The mosque which is a cultural heritage

has architecture like the Great Mosque of Demak.

Mosque building is reinforced with 16 piles of teak

wood. Interestingly the mustaka or mosque head is

not in the shape of a dome but the wijaya kusuma

flowers. The mosque was founded since the 14th

century and became the center of civilization and the

spread of Islam in Java. Once this mosque is

surrounded by boarding school. Because it is located

near Bengawan Solo River makes alim ulama make

it as the center of the economy. Darussalam Mosque

is often used by Raja Keraton Solo Paku Buwono VI

to discuss with Prince Diponegoro to discuss the

strategy of war against Dutch colonialism (Solopos,

2018). The mosque was last renovated in 1837 and

still stands today.

Figure 1: Process Batik.

Figure 2: Herbal Making Process.

Figure 3: The Process of Making Jenang.

Tourism Village themed creative village located

in Kenep Sukoharjo Central Java Indonesia begins

by the desire of citizens to introduce the potential of

creative industry in its area. This tour activity is

managed by Pokdarwis i.e. Group of Conscious

Tour named Kampung Sanga. The Kenep youth

community called Lumbung Budoyo is also active in

the development of Kenep tourism village. Members

of the Lumbung Budoyo community numbered 20

youths. Pokdarwis and Lumbung Budoyo are under

the coordination of the Sukoharjo Central

Sukeparate government. Institutional and

management of tourism activities have been

arranged by arranging stewardship and division of

tasks and obligations (Praswati, 2018).

At the beginning of the inauguration of Kenep

Village as a tourist village, promotion was only done

through word of mouth marketing. The community

of tour operators made several major events in an

attempt to introduce the creative tourist village of

Kenep Sukoharjo to the public. Events that have

been done such as art and cultural carnival

competitions. LPPM UMS, PPMB FEB UMS, and

Ministry of Ristekdikti cooperate with Sukoharjo

Regency Government to accompany creative

industry in Creative Tourism Village Kenep

Sukoharjo. Assistance is carried out by

multidisciplinary lecturers who aim to develop rural

community enterprises. Cooperation undertaken in

the form of community service activities. Some of

the programs that are being done are the preparation

of the Tourism Village website, the preparation of

youtube design, the preparation of tourist brochures,

the arrangement of food product packaging as

souvenir of the Tourism Village, the organizational

arrangement of the Desa Wisata (Praswati, 2018).

The use of e-commerce has many benefits for

business operators (Wen, Chen and Hwang, 2001;

ICPS 2018 - 2nd International Conference Postgraduate School

124

Gajendra, 2015; Asghar and Brem, 2013). Benefits

that can be obtained such as promotional cost

savings, easy to embed brand in the minds of

customers, ease of communication and improve

customer satisfaction. E-commerce has several types

such as youtube videos, websites, facebook and

instagram. Although many benefits can be obtained

from the implementation of e-commerce but still a

few small business owners who use it (Asghar and

Brem, 2013). Kenep Tourism Creative Village has

started to implement e-commerce in marketing its

tourism potential. Background of e-commerce

adoption by small industry that is security, prestige,

government support, vision and the need to service

niche market (Chiliya, Chikandiwa and Afolabi,

2011).

Table 2: E-commerce Creative Tourism Village Kenep

Sukoharjo Through Youtube.

Kenep Sukoharjo Youtube Publicat

ions

Views

http://kelurahankenep.blogs

ot.com/p/

enan

.html

2015 3

https://ruvideos.org/q55KrV

cLg4k-rahasia-masjid-kuno-

darussalam.html

2015 45

https://www.youtube.com/w

atch?v=mP

uF2Y4

2016 184

https://www.youtube.com/w

atch?v=mVI2wTlbJF

2016 218

https://www.youtube.com/w

atch?v=G7QnkA-aic

2016 3282

http://wisatakenep.blogspot.

com/

2017 0

https://www.youtube.com/w

atch?v=vO5ot3uS

&t=4s

2017 11465

https://www.youtube.com/w

atch?v=iIn

pCDTK

2017 320

https://www.youtube.com/w

atch?v=bPOTtF

2017 113

https://ruvideos.org/zqTWsn

BSz4E-karnaval-desa-

kenep-2017.html

2017 1548

https://www.youtube.com/w

atch?v=RtCR

LExT

2018 10

https://www.plukme.com/po

st/1524138309-kenep-desa-

kreatif-

erbasis-

ariwisata

2018 411

https://wisatakreatifkenep.w

ixsite.com/kenep

2018 0

E-commerce through youtube videos from

Kenep Creative Tourism Village still uses

Indonesian so it cannot be known internationally.

The frequency of up-date information on tourism

activities is still relatively small. From 2015 to 2018

there are only 13 promotions made through youtube

videos. Of the 13 on-line promotions are not all

from coverage of news media on line and coverage

of television programs. Cooperation with some

electronic media needs to be continuously woven by

conducting an event so that it can be reported that

finally can at the same time promoting Kenep

Creative Tourism Village.

The website contains information about the

Creative Tourism Village Kenep Sukoharjo. Choice

of tourist destinations, types of tour packages such

as educational tours, nature tours, religious tours or

culinary tours. There are two strategies of website

design: informational/communicational design

strategy and online/transactional strategy (Wen,

Chen and Hwang, 2001).

Figure 4: Website Design Creative Tourism Village Kenep

Sukoharjo

Facebook has also been used by business owner

Kenep creative industry in marketing its products.

The use of facebook makes it easy to spread all the

information both photos and videos about the

product, besides the consumers can directly respond

to the product to be sold. But at this time facebook

considered less effective because the enthusiasts

facebook lower than other social media such as

Instagram (Abdullah, 2016).

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a-Commerce On Tourism Village Development

125

Figure 5: Product Promotion Jenang Village Creative

Tourism Tour Kenep Sukoharjo through Facebook and

Instagram.

Instagram usage is currently quite effective and

is booming in all ages, through this Instagram SME

owners can maximize their marketing. The

community service team of UMS has also been

assisting in the preparation and management of

Instagram account from one of the creative industry

of Kenep which is entrepreneurs processed

traditional jenang food of Kedunggudel Sukoharjo.

Instagram accounts will be managed by the

management community to facilitate in promoting

and communicating with consumers of a tourist

destination (Kurniawati, 2016). The development of

instagram usage in e-commerce of Kenep Tourism

products are:

Table 3. E-commerce through Instagram

Account Insta

Followers

@jenangwisatakenep 40

@jenangkenepberkah 57

enan

kenepprima

During the trial use of e-commerce for 4 months

at the beginning of the community and community

service team actively doing some updated postings

about the information processed jenang and

promotion of products by the Village Tourism

Kenep of jenang traditional food. From 40-50 users

who follow Instagram Jenang account, some of

them are interested to buy processed products of

jenang with curious reason about jenang product of

Kedunggudel Sukoharjo. It is hoped that the

adoption of e-commerce can help the distribution of

marketing of processed products to be more

extensive.

Many benefits that can be taken from e-

commerce is product promotion, cost saving, timely

information, shortened remittance time, information

concistency, better customer service, customization

of products, competitive advantage and conventions

of doing business (Wen, Chen and Hwang 2001) .

Website effectiveness can increase user satisfaction

(Gejendra, 2015). Use of e-commerce such as videos

uploaded on youtube, website, facebook and

instagram Creative Tourism Village Kenep

Sukoharjo Central Java is already good but still

needs to be developed further. The grammar and

design used are still less interesting for people to

read. This is due to the lack of active and creative

marketing personnel in updating data. Information

that is updated regularly and packaged and managed

properly will give maximum benefits so as to attract

readers who will eventually visit the Creative

Tourism Village Kenep Sukoharjo.

5 CONCLUSION

The results of this study is the manager of Creative

Tourism Village Kenep Sukoharjo Central Java has

begun to do and continue to develop. The process of

development and renewal is supported by the role of

universities through community service programs.

Government support is also key to the successful

management of tourism activities. The liveliness of

the Pokdarwis and Lumbung Budoyo communities

has become an important player in developing

tourism services. Do not forget the will of the

creative industry entrepreneurs who become tourist

destinations to continue beautifying themselves so

interesting to visit. The potential use of e-commerce

is very positive in supporting the advancement of the

creative industry in helping to market their products.

However, this research has not measured the

effectiveness of the use of e-commerce so it can be

an opportunity for further research.

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