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Economic Development of Kampung Pariwisata

Pulo Geulis through Formation Saving

and Loan Business Unit

Fatimah, Elisabeth Y. M., Lia Ekowati, Darna

Accounting Departement of State Polytechnic of Jakarta, New Campus UI, Depok 16425

Keywords: Pulo Geulis, Kampung Wisata, Pluralist, Saving and Loan Business Unit

Abstract: The main problem faced by the community of RW IV Kampung Wisata Pulo Geulis Bogor is the difficulty

of getting credit to develop micro businesses. As a result, micro business operators are entangled with a Loan

Shark who offers them loans at extremely high interest rates. The aim of community service is to increase

knowledge about the importance of developing micro-businesses through credit to cooperatives or savings

and credit business units and to motivate them to form savings and credit business units. The method used is

the method of community empowerment through training and assistance in the formation of Savings and Loan

Business Units. The establishment of the Savings and Loan Business Unit will further facilitate micro

businesses applying for credit without high interest costs and without collateral. The sample was determined

based on purposive sampling expert judgment in which 24 micro business people were selected as training

participants and assistance in the establishment of a savings and loan business unit. As a result they were

motivated to form a savings and loan business unit under a cooperative that already exists in Pulo Geulis (RW

4) and was appointed as the head of a savings and loan business unit.

1 INTRODUCTION

Kampung Pulo Geulis is a village that was formed as

a result of the splitting of the Ciliwung river which

reunited before the Botanical Gardens, Bogor. That is

a village that resembled a small island in the middle

of the river was formed. This village is included in the

Babakan Pasar village, Central Bogor District. It has

an area of around 3.5 hectares with 2700 inhabitants

so that the density level reaches 700 people per

hectare. The biggest potential of the Pulo Geulis

village is a tourist destination that is pluralistic,

unique culture that is displayed in the form of

historical and culinary murals. In addition, this village

is one of 7 kelurahans that has been included in the

landscape design plan by 2018 with the full

involvement and participation of the community. The

landscapes that the community agreed were the mural

village, the reading garden and the culinary area.

Based on the interview with the Village Chief of

Babakan Pasar, the mural village in Pulo Geulis was

not only a mural but to complete it a culinary center

would be built. In the culinary center, a variety of

culinary specialties will be offered in the city of

Bogor and later will be devoted to featuring superior

culinary Pulo geulis namely combro and crackers

jengkol. Besides culinary, the village of Pulo Geulis

also produces beautiful bag crafts, backpacks and

Barong crafts.

The problems faced by micro businesses in this

village are not much different from the problems

faced by micro businesses in other places. In addition

to legal marketing and legal issues, most

microbusinesses want the availability of credit

assistance for venture capital with low interest.

People's Business Credit (Kredit Usaha Rakyat), even

without collateral, requires complex requirements

and high interest rates. Submission of credit to

financial institutions such as national banks, requires

conditions including a complete business legality. As

a result, many micro entrepreneurs choose to get

credit at illegal banks or money lenders who charge

very high interest rates. Moneylenders who often

operate in Kampung Geulis are called Banke or

Mobile Bank. Although it has been banned by the

Village Officials, Banke still operates in secret.

Banke is used as a solution in overcoming working

capital difficulties because it is easy without

Fatimah, ., Y. M., E., Ekowati, L. and Darna, .

Economic Development of Kampung Pariwisata Pulo Geulis through Formation Saving and Loan Business Unit.

DOI: 10.5220/0009979000002905

In Proceedings of the 8th Annual Southeast Asian International Seminar (ASAIS 2019), pages 159-163

ISBN: 978-989-758-468-8

159

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complicated administrative requirements. It's just that

very high interest rates make it difficult for micro-

businesses to pay off loans that will continue to grow

because the interest that is in arrears will bloom again,

as a result the business profits run out to pay off debt

alone.

Savings and loan cooperatives which, although

long established in Kampung Pulo Geulis, have not

been able to reach all areas of the village, including

RW 04. Even though RW 04, which consists of 5

RTs, has great economic potential. Some micro-

businesses have started to develop, such as bag and

barong micro-businesses while those that have the

potential to be developed are Bogor's culinary micro-

businesses. The benefits of cooperatives are huge.

Research from Wiandhani (2016) says that the

economic benefits received by members of the

cooperative are very large, both in the form of cash

derived from net profits and in the form of sale and

purchase service costs and non-economic benefits in

the form of satisfaction of cooperative members.

Another advantage gained by cooperative members is

the utilization of existing business units in

cooperatives. It is important for cooperatives to

increase the level of satisfaction of cooperative

members, so that they can significantly benefit the

cooperative. Another study from Nuryanti (2014)

focused his research on the importance of service

quality to cooperative members so that it was

concluded that the benefits of cooperative service

quality would be able to realize the participation of

cooperative members.

Based on the aforementioned problems, then the

idea was put forward to form a savings and loan

business unit that is used to develop the economy of

the Kampung Pariwisata Pulo Geulis Bogor,

especially RW 04. The objectives of community

service activities in the Pulo Geulis Tourism Village

are: 1) Increasing the knowledge of the people of Pulo

tourism village Geulis about cooperatives and savings

and loan business units; 2) Assist them in forming a

savings and loan business unit and help them provide

initial capital for the establishment of a savings and

loan business unit.

2 LITERATURE REVIEW

Cooperatives are organizations or associations that

work together as a family in running a business with

the aim of improving the welfare of its members and

is one of the drivers of the Indonesian economy. The

role of cooperatives is very strategic in promoting

economic growth. The government is required to pay

attention to the progress of cooperatives, especially

savings and loan cooperatives. Besides that, capital

money is also very much needed, because in the

business world, innovation and proper business

management are needed. So that savings and loan

cooperatives are required to be able to innovate and

have the right business management. According to

Dewi's research (2017) the amount of credit, the cost

of innovation and business management has a

significant effect on the ROI of savings and loan

cooperatives.

Savings and loan cooperatives are cooperatives

engaged in savings and loan activities, where

cooperatives can provide loans to cooperative

members and cooperative members can use these

loans to enlarge the business. In the digital 4.0 era, all

economic actors face fierce competition. One of the

economic actors is cooperatives, including savings

and loan cooperatives. To win the competition,

cooperatives need the right strategy. Research from

Ermaya (2019) cooperatives must pay attention to

conditions that occur both externally and internally.

So that they can make the right decisions in

developing their business. By using SWOT analysis

(strengths, weaknesses, opportunities, threats) it turns

out that the most effective strategy is the strategy of

concentration, development strategy and innovation

strategy. It's just that not all cooperatives in Indonesia

can develop rapidly. Many factors inhibit the

development of cooperatives including savings and

loan cooperatives. Research from Susilawetty (2013)

several factors that can hinder the development of

savings and loan cooperatives, among others: 1)

people do not understand the meaning of

cooperatives, 2) people are less concerned with

behavior in cooperatives, 3) there are still many

cooperative members who think that cooperative

management has been entrusted to the management,

4) limited cooperative capital because in the credit

process no collateral is used so that when this loan is

stuck there are no assets that can be confiscated.

3 METHODOLOGY

The research technique used is the field survey

method (field research) where researchers go directly

to the field. The approach used is a qualitative

approach in order to be able to describe the reality of

the phenomena faced by the Pulo Geulis Bogor tourist

village as a location for conducting research and

community service. The population used in this study

is the whole community RW 04 Pulo Geulis tourist

village who work as micro entrepreneurs. The sample

was determined using purposive sampling based on

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expert judgment and selected 24 micro entrepreneurs

as research samples and as training participants in the

service program. The data used in this study are

primary data obtained through interviews using a

questionnaire, while secondary data are obtained

through related literatures and related journals. The

data analysis technique uses descriptive qualitative

method, which is to provide a description in

accordance with the facts in the field regarding the

research subject in accordance with the variables

obtained. To check the validity of the data the

triangulation technique used is to compare data from

different sources with the same technique.

4 RESULT AND DISCUSSION

Most of the micro business operators in the Kampung

Pariwisata Pulo Geulis are engaged in food or

culinary. A small portion in the field of basic food

services. Products are marketed around the Pulo

Geulis village environment, only at certain times

these products are marketed out of the Pulo Geulis

village, for example at a bazaar or exhibition held by

the Bogor City Government. Even though these

micro-businesses are over the age of 5 years, some

have even started 14 years ago, but have not

experienced significant progress, which can be seen

from undeveloped marketing and the quantity and

quality that has not changed. Motivation to increase

effort is not visible. The focus of life is more on the

issue of eviction so that it took a long time to ensure

that the arrival of the Team of Servants from the

Jakarta State Polytechnic had nothing to do with the

issue of eviction that was spread in the Pulo Geulis

village community.

The tourism potential that is pluralistic with the

existence of the pagoda in the middle of Muslim

community settlements is a huge attraction for local

tourists and some foreign tourists. The arrival of

tourists is a new target market that must be responded

to. The Bogor city government cooperated with Hotel

101 along with the service team from the Jakarta State

Polytechnic to work together to make this village a

pluralist tourist village by developing a mural village

and culinary tourism.

Micro businesses as subjects for this change need

to get training, assistance in developing their

businesses. The main requirement is access to

business capital. The existence of a Mobile Bank

(Banke) that provides credit with easy conditions but

a very high interest rate must be avoided. Savings and

loan cooperatives should be a solution for fulfilling

the credit needs in a profitable way.

The level of knowledge of the residents of Pulo

Geulis tourism village on the importance of the

existence of cooperatives in developing micro

businesses is very high. From direct observation and

through the questionnaire it was found that 50% of

participants answered all questions correctly, 29% of

participants answered correctly 9 questions, 13%

answered 8 questions correctly, 4% answered 7

questions correctly and 4% were only able to answer

1 question correctly. The high level of knowledge of

participants because in the Pulo Geulis tourist village,

a cooperative has been established since a few years

ago. Information about the importance of

cooperatives in supporting the development of

microenterprises was already known by the

participants. Research from Marta (2013) said that the

information obtained can narrow the knowledge gap

between people who have the upper status and low

status. Research Chien Yu (2013) said there is a

positive relationship between sharing knowledge and

innovative behaviors of individuals with the ability to

innovate.

It's just that the level of knowledge about

cooperatives does not make them motivated to

become cooperative members. The existence of

cooperatives in different RWs makes the reason for

not being a member. The training and assistance for

the establishment of a savings and loan business unit

conducted by a team of servants is expected to be a

motivation for developing micro businesses by

becoming an active member of the Pulo Geulis

savings and loan business unit. Sajianto's research

(2012) said education, training and counseling had a

positive and significant effect on participation in

cooperative membership. While research Mustangin

et al (2018) that the process of community

empowerment makes it easy for people to access

capital by establishing savings and loan cooperatives

and changes in the economy and training are designed

to cause an increase in knowledge about cooperatives.

This statement is strengthened by Dewi's research

(2018) which says entrepreneurship education has a

positive and significant influence on entrepreneurial

skills.

The level of knowledge of cooperatives and the

motivation that is invested by the service team is

expected to realize the Pulo Geulis savings and loan

business unit develops rapidly and provides

convenience to micro businesses to access venture

capital. The joining of all RW IV residents consisting

of 5 RTs will accelerate the development of the Pulo

Geulis savings and loan business unit. This is in

accordance with research Rahmanto et al (2018) who

found that joining a community will make its

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members gain new insights and expand business

networks. Besides that, internal variables in the

company such as HR, financial aspects, operational

technical aspects, market aspects and marketing have

an influence on the performance of micro businesses.

The small community formed from the training

and mentoring participants is expected to be able to

transmit enthusiasm and motivation to the Pulo

Geulis village community gradually and be able to

touch the whole, especially among the younger

generation. Based on interviews with the head of RW

4 in Pulo Geulis village, most of the young generation

of this village have a main job as buskers. Although

this type of work is halal work, it still does not provide

a definite income and does not guarantee a higher

quality of life for the future.

During the survey and implementation of the

Community Service team received full assistance

from the village office and RW. The village head is

very enthusiastic and very helpful in the difficulties

faced by the service team. Changing people's lives is

not easy, it takes time and an intense and human

approach. Based on the Psikologi.com Lecturer Portal

(2017) there are several ways that can be done to

change the habits of a person or community, namely:

1) Finding Out the Trigger, the service team must

know what factors trigger young people in Pulo

Geulis village to become buskers rather than trying

entrepreneurship. The approach taken by the service

team has not been able to recruit buskers to participate

in training conducted by the Jakarta State Polytechnic

team. The training participants totaling 24 people, all

of them have professions as culinary micro-

entrepreneurs and food staple traders, so it is indeed

in the interest to attend training and mentoring the

establishment of a savings and loan business unit. 2)

Determine the Purpose and Motivation: determine the

positive goals of the activity, so that it will be easier

to make the right motivation that can change the

habits of a community. 3) Determination Must be

Strong: to change something must have a strong

determination. 4) Steer clear of triggers: when

triggers have been found, they must steer clear of

triggering factors. 5) Commitment: commitment is

very influential on changing one's attitude. Someone

who has a strong commitment to achieve something

and leave bad habits, will be easier to achieve. 6)

Focus: focus on the things that bring success in

change. 7) Trying New Things: make sure that new

activities will be able to divert and change things for

the better. 8) Make Small Changes: small changes can

be made continuously, if the changes are added

slowly there will be changes for the better slowly. 9)

Make a Plan: by writing the changes that will be

achieved, will facilitate the achievement of the

desired changes.

The results of the training and assistance for the

establishment of a savings and loan business unit is

the establishment of a savings and loan business unit

called the Pulo Geulis Savings and Loans Business

Unit. For the initial stage, all participants plus 5 RT

heads and RW heads are directly members of the Pulo

Geulis Savings and Loans Business Unit. The main

motivation for the establishment of the Pulo Geulis

Savings and Loans Business Unit is to get access to

credit without complicated requirements, but

affordable interest rates. All members of the savings

and loan business unit make a commitment to grow

this unit by paying mandatory savings in a disciplined

manner and paying credit installments in accordance

with the agreement of all members of the Pulo Geulis

savings and loan business unit. For the success of the

savings and loan business unit, the Jakarta State

Polytechnic Sub Department Team also provided

assistance several times to the management of the

savings and loan business unit and helped solve the

problems encountered.

Changes in attitude were apparent from all

trainees. The most obvious change is the enthusiasm

and motivation to inform and invite the younger

generation to become members of the savings and

loan business unit. It is expected that with the

increasing number of people in the Kampung

Pariwisata Pulo Geulis becoming members of the

savings and loan business unit, this unit can develop

rapidly and can provide credit assistance to micro

entrepreneurs and prospective micro business

entrepreneurs, especially from the young generation

of the Kampung Pariwisata Pulo Geulis.

5 CONCLUSION

1. Training and assistance for the establishment of a

savings and loan business unit can further increase

knowledge about the importance of establishing a

savings and loan business unit for micro

businesses in Kampung Pariwisata Pulo Geulis,

Bogor.

2. The assistance provided by the Accounting

Department team from Jakarta State Polytechnic

is in the form of visiting the management of the

savings and loan business unit several times, in

addition to providing motivation to continue the

enthusiasm for the enlargement of the savings and

loan business unit, also to help solve the problems

faced so that the Pulo Geulis savings and loan

business unit can develop rapid and provide

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benefits to micro businesses in Kampung

Pariwisata Pulo Geulis.

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