Journal of International Development Cooperation
Korea International Cooperation Agency

Impact of Saemaul Movement in Community Participation on Indonesia Village Fund Program in Tanjungwangi Village, Indonesia

Aida Fitria1,*, Hwa Seok Hwang2,**, Dong Hyun Shin3,***
1Master’s Course, Kyungpook National University
2Professor, Kyungpook National University
3Professor, Kyungpook National University
*Corresponding author :
**Corresponding author :
***Corresponding author :

© Copyright 2021 Korea International Cooperation Agency. This is an Open-Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License ( which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Received: Oct 22, 2021; Revised: Oct 26, 2021; Accepted: Nov 12, 2021

Published Online: Nov 30, 2021


This study analyzes the implementation of the Saemaul Movement in Indonesia through the Village Fund Program as the spearhead of development and improving community welfare. This study intended to compare the Saemaul Movement Project and Village Fund Program in Indonesia, and analyze how indirect impacts indicate the process of mindset transformation. This study uses a quantitative methodology to measure the effect of Saemaul Movement Project participation on the Village Fund Program participation in Tanjungwangi Village. This study uses the Partial Least Square Structural Equation Model (PLS-SEM). In terms of participation, the positive impact of the Saemaul Movement Project on the Village Fund Program indicates the Movement’s positive effect in Tanjungwangi Village. Based on the findings of the study, we suggest policies to strengthen villagers' active participation in rural development projects, by applying the positive impact of the Saemaul Movement to improve the Village Fund project in Indonesia. Indonesian policymakers can take lessons from this to improve participation in community development programs. Furthermore, transfer of knowledge programs will accelerate the more sustainable application of the Saemaul Movement Project in the future. Additional support for the highly capable village is also expected in the future. The participation rate of the pilot villages can be boosted by implementing competition schemes, which take into account mindset changes.

Keywords: Participation; Community Development; Partial Least Square-Structural Equation Model; Saemaul Movement; Village Fund Program


New Village Movement as known as Saemaul Movement was regarded as a successful community driven development program in Korea. Through Saemaul Movement, Korea support developing countries by sharing experiences and implementing Saemaul Program to achieve the goal in improving quality of life and reducing poverty alleviation to prosperity. Korea has experienced outstanding achievement in combining rapid economic development with significant reductions in poverty alleviation. Korea’s GNI (Gross National Income) per capita was increased from USD 100 in 1963 to more than USD 31,762 today (World Bank, 2021).

Indonesia is one of the countries that adopt Saemaul Movement and several villages had appointed as pilot project to implement Saemaul Movement since 2008. The first of The Saemaul Project signing within the framework of Sister Province Cooperation between Gyeongsangbuk-do Province in Korea and Yogyakarta Special Region in Indonesia. This cooperation brings greatly benefits and initiated to increase the well-being of rural development with improving village infrastructure, improving living condition, volunteering activity by encouraging self-sufficiency for rural people, implementing Saemaul Spirit (self-help, diligence, and cooperation).

Poverty defines a level of life that is below the minimum standard of living needs. Poverty still remains the crucial issue in Indonesia, moreover triggered by the Covid-19 pandemic further compounds to the complexities of the matter. According to Indonesia Statistics Agency (BPS, 2021) the percentage of poor people living in rural and urban areas in March 2020 was 9.78 per cent. It indicates the number of people in urban and rural areas who are living in the poverty line had reached 26.42 million people. The number of poor people living in urban and rural areas increased by 1.63 million in March 2020, compared to 24.79 million in September 2019 (9.22 per cent). According to statistics, the population of poor urban people increased dramatically from 9.86 million in September 2019 to 11.16 million in March 2020, with 1.74 million people expanding rapidly. In contrast, the number of poor people living in rural areas has increased significantly by around 330 thousand from 14.93 million in September 2019 to 15.26 million in March 2020. Consequently, poverty growth in urban areas is substantially higher than in rural areas. Poverty is defined not simply by the number and proportion of poor people living in urban and rural areas. The depth and severity of poverty are two additional factors that must be addressed.

However, Government of Indonesia also endeavor to reduce poverty alleviation with various local community development project. According Alam, 2018 from the 1994 to the present, the government of Indonesia has conducted a number of programs such as IDT (Presidential Instruction of Disadvantaged Villages), P3DT (Supporting Infrastructure Development Program for Disadvantaged Regions), PPK (District Development Program), formation of UPK (Financial Implementing Unit) and PNPM (National Program for Community Empowerment) to eliminate rural poverty, improve quality of life, and develop rural areas. Although, these programs did not affect the satisfactory goals and targets, instead contributing to the enrichment of the wealthy while doing nothing to improve the lives and environment of the rural poor, hence widening the income inequalities. In particular, these programs have been identified as having a number of common problems, including insufficient institutional coordination and implementation approach; inefficient delivery; political disruption; lack of leadership; inconsistencies in policies and programs; and a lack of self-help in capabilities.

In 2015 the Government of Indonesia launched Village Fund Program as Government Planning and Program to Build Indonesia from the periphery by strengthening areas and villages. According to (Arham, 2020) reveals that village fund transfer is insignificant in addressing the issue of income inequality, rather education and agricultural labor productivity tend to be the determinant factors in dealing with the issue of income inequality in rural regions. The study also analyzed the impact of village fund transfer in reducing rural poverty rates and emphasizes the significance of human quality and the agriculture sector in improving rural poverty rates in rural region.

In compliance with the background, this study would review the impact on participation experience in Saemaul Movement Project in Tanjungwangi Village on Participation in the Village Funds program with a view to enhancing the implementation of the Saemaul Movement perspective in Indonesia. The study work starts by investigating the Saemaul Movement Project’s application in Indonesia and the Village Fund program in Indonesia and afterwards evaluate the impact on the Village Fund program of the Saemaul Movement Project. The objectives of this study is to suggest Indonesia policymakers can take lessons from Saemaul Movemement Project to improve community participation in Indonesia community development program. And the study tends to recommend a policy to improve the implementation and design of community development of Saemaul Movement Project in Indonesia and transfer knowledge will upgrade and encourage Saemaul Movement Project into a bigger village.


There are three main factors supporting the realization of the community participation as a real activity; (1) a will, (2) an ability, and (3) an opportunity for people to participate in (Sumardjo, 2003). These factors are influenced by many factors surrounding the life of human beings interacting with each other, such as the psychological individual (needs, expectations, motives, reward), education, lack of information, skills, technology, institutional support, structural and social stratification, the local culture as well as regulatory and government services. According to (Sumardjo, 2003), there are elements that support for certain behavior in a person (Person inner determinants) and there are ads or environmental factors that enable the behavior.

According to (Sahidu, 1998), the factors affecting the level of willingness of society to participate are the motives, expectations, needs, rewards and control information. Factors which gives people the chance to participate is the setting and service, institutional, structural and social stratification, local culture, leadership, facilities and infrastructure. While the factors encouraging them to involve areas of education, capital and experience.

Factors that are thought to influence the activeness of the community to participate in development planning might be classified into two categories, namely factors of internal (consist of data about age, level education, type of work, level of income population, length of stay) and factors of external (consisting of communication and leadership) based on (Suroso et al., 2014).

1. Community Development

As claimed by (Smart, 2017) Community development is a process in which agencies assist community people in identifying and taking collective action on issues that matter to them. Community development strengthens and connects communities by empowering residents. Community development views residents as experts in their own lives and communities, and places a high importance on their knowledge and wisdom. At every level of a community development program, from deciding on concerns to selecting and implementing solutions, to evaluation, community members are in charge. In order to address the causes of inequality and poverty, community development places a strong emphasis on power redistribution.

In <Table 1>, explanation the distinction between community-based on work that engages the community and the community of development work that is driven by the community.

Table 1. The contrast of community among community-based and community development work
For community-based work For community development work
An issue or problem is defined by agencies and professionals who develop strategies to solve the problem and then involve community members in these strategies. Ongoing responsibility for the program may be handed over to community members and community groups Community groups are given assistance in identifying critical problems and issues, and also planning and implementing solutions to fix those concerns and resolve issues.
· The agency is in charge of making decisions.
· The agency defines the problem or issue.
· Timelines are well-established.
· Pre-determined outcomes, such as changes in specific behaviors or knowledge levels.
· The agency’s and community members’ power relationships are continually being negotiated.
· The community first names the problem or issue, then the problem or issue is described in a way that advances the community’s and agency’s shared interests.
· The duration of the job is longer.
· The targeted long-term consequence is usually changed at the neighborhood or community level, with an increase in community members’ capacities as a result.
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As can be seen, community development may not be the appropriate approach if the results and actions that will be used have already been determined and there is no opportunity for the community to define the outcomes and actions. Community development is a long-term process; participation and planning might take a year or more, and it can take several years to develop the ability of community members to lead the initiative and assure long success. On the other hand, according to (Baldwin et al., 2016) Community-based development is a method of conducting local development projects that encourages for community engagement in decision-making and management, with the goal of managing more effective programs by utilizing local expertise and resources. The “community-based development” approach has the potential to motivate people and improve outcomes through three mechanisms: (1) an immediate direct effect of encouraging the participation in deciding how to manage resources within the community-based development program, (2) an indirect effect on community organization that helps to improve people ‘s participation with other local institutions, and (3) an indirect effect on community organization that improves perception within centralized government structure.

According to (World Bank, 2021) considers that CDD (Community-Driven Development) concepts and actions are critical components of an effective poverty-reduction and long-term development strategy. CDD initiatives are based on the concepts of transparency, participation, accountability, and increased local capability. Experience illustrates that when the impoverished communities are given clear and consistent rules, availability of information, and applicable technical and economic support, they can efficiently manage to recognize community priorities and solve local issues by collaborating with local governments and other institutions to create small facilities and provide essential services.

Based on (Binswanger-Mkhize et al., 2010) defines Local Community-driven Development (LCDD) concept begins with the surveillance that community empowerment does not occur in a vacuum; it is influenced by local government development and national government sectoral programs. This approach brings together three alternative solutions to local development that emphasize many of the same principles: empowerment of the poor and other marginalized groups, ability to respond to beneficiary demand, autonomy of local institutions, greater accountability, and development of local capacities. LCDD is not only a project; it implies a fundamental revolution of political and administrative institutions with the goal of providing communities and local governments with the capabilities, resources, and authority to use these dynamically and sustainably, allowing them to take charge of their development. Empowerment is increasing poor people’s resources and capabilities to participate in, discuss with, and hold responsible institutions that affect their life. It essentially gives people a chance and access to information, as well as improve social participation, responsibility, and organizational power.

2. Participation

According Based on (Howard & Wheeler, 2015) definition of participation is part of the reason for involvement is that it is seen as an antidote to the faults of previous targets and frameworks, with the notion that greater inclusion and public participation will improve the new global framework’s viability and legitimacy. Based on (Smart, 2017) participation in community development refers to the full involvement and leadership of community members in establishing plans, developing, giving, and assessing community actions or initiatives. Participation should not be tokenistic; community members should participate in ways that are meaningful to them and to the community development initiative as a whole while it takes time to achieve significant participation.

According (Cohen & Uphoff, 1980) many other essential criteria should be considered when assessing a governance transformation, such as the type of participation (participation in making decisions; implementation; benefit, and evaluation) or how the process occurs (the basis of participation, its form, its extent, its effects). (1) The stage of decision-making, which is realized by community participation in meetings. The decision-making step in this context refers to the planning and implementation of a program. (2) The implementation stage, which is the most crucial stage in development because it is at the heart of development. The real meaning of participation in this step is divided into three parts: participation as a thinking contribution, financial contributions, and forms of action as project members. (3) The stage of enjoying the benefit, which can be used to assess the success of community participation in the project’s planning and implementation stages. Furthermore, by observing at the community’s position as the subject of development, the greater the benefits of the project, the greater the chances that the project achieve the goals. (4) Evaluation stage, which is regarded crucial because of community participation at this stage provides feedback to contribute input for future project implementation (<Table 2>).

Table 2. Cohen and Uphoff (1980) classification of participation
Types of Participation Participation in decision-making
Participation in implementation
Participation in benefits
Participation in evaluation
Who Participates? Local residents
Local leaders
Government personnel
Foreign personnel
How is participation occuring? Basis of participation
Form of participation
Extent of participation
Effect of participation

Source: (Bene, 2006).

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As a result, community participation in development projects is theorized to be effective in this model by involving all stakeholders (local citizens, local leaders, government personnel, and foreign personnel) at all phases using top-down and bottom-up approaches. As stated in (Bene, 2006) Uphoff’s typology has an applied focus and includes not only different types of participation but also who participates and how. The authors recommend to organize the typology of participation due to the project cycle phases (decision-making, implementation, benefits, and evaluation), although the phases are not generally consecutive. The “who” dimension divides the actor involved into local residents, local leaders, government personnel, and foreign personnel. The “how” dimension explains several mechanisms via which involvement can take place, including its basis, form, extent and impact.

3. Saemaul Movement in Korea
1) Saemaul Movement in 1970

In according with (Han, 2011) The New Community Movement, or Saemaul Movement, is Korea’s most triumph of the rural development program. Most Korean people consider this rural modernization project to be the most effective achievement in recent Korean history, according to various national assessments. The Saemaul Movement is a spiritual movement in rural Korea, where people are educated to break free from dependency and fatalism and embrace the challenge. The end purpose of this mental revolutionary was to transform people’ attitudes to achieve better their particular living standards, not the society or the country as a whole. Their mentality could be described as “grow mentalism” because they set increasing earnings and efficiency as their ultimate goal. Because the Korean government has prioritized development since the 1960s, this was not peculiar to policymakers and villagers in Korea.

As determined by (Soo, 2005), the Saemaul Movement was founded in the early 1970s to improve the living conditions of those living in rural areas. Korea President Park Chung-Hee instructing in a national convention of central government, governors and priests on strategies to develop self-help village enterprises according to involvement between cultivate pioneers, ranchers, and government agencies involved. The central government considered the pilot program to be particularly notable. In early 1971, the national government distributed 335 packets of cement to every one of the country’s rural towns to enhance farmers’ immediate living conditions, for example, town piped groundwater facilities, communal clothes ranges, communal compost sites, and so on, based on this assessment. According to statistics, the central government contributed $8.5 million, while completed projects reached $ 25 million.

Several characteristics define the Saemaul Movement, stated by (Yi, 2016). It was carried out using an “integrated approach,” which was a blend of top-down and bottom-up methods. The Saemaul Movement is a traditional Korean method of community development. It signifies that it was implemented based on the beneficial qualities of Korean heritage and culture. This means of avoiding hunger and poverty, and the initiative of better-living, concerned the diversifying of farm households’ sources of revenue, which were previously essentially limited to paddy cultivation. Government interference was very beneficial as a “top-down” method, while community/people participated collaboratively as a “bottom-up” method through the Saemaul Movement.

Eventually, (Soo, 2005) explains in his study that the Republic of Korea’s Saemaul Movement has been hailed as a successful business model of rural community development around the world. The Saemaul Movement was a traditional Korean community development project that was started by the country’s top leadership’s political commitment to help people transcend poverty. The Saemaul Movement’s success is determined by several elements. Firstly, during the entire span of the movement, the central government’s help and supervision for the mobilization were critical. Secondly, the implementation process was attended by a diverse group of people. Afterwards, the Saemaul Movement has the potential to be a huge success. Third, the Saemaul Movement may achieve great success by fostering community leadership that is elected by people in rural communities. Subsequently, the Saemaul Movement instilled the people with the spirits of diligence, self-reliance, and cooperation as a spiritual reform movement.

In conclusion, without Saemaul Movement, most of the Korean government’s program agricultural productivity and rural income projects could have been accomplished. Instead, if they had, would they have had the same level of triumph and influence in the rural Korea as they did? No, possibly not. Underneath the personal guidance of President Park, Saemaul Movement encapsulated the entire endeavor to economically and socially improve rural areas into a sweeping national movement. The all-encompassing movement rallied the bureaucracy, elevated village life and farming as a profession, and recruited the entire nation in the campaign. Saemaul Movement would have remained an interesting but not transformative initiative if not for the large investments in rural development; nevertheless, without Saemaul Movement, Korea’s agricultural investments would not have generated the spectacular outcomes highlighted by (Reed, 2010).

2) Saemaul Movement Project in Indonesia

The implementation of Saemaul Movement Project in Indonesia as part of a sister province bilateral agreement between Indonesia’s Province of Daerah Istimewa Yogyakarta (Yogyakarta Special Region) and South Korea’s Province of Gyeongsakbuk-do. The two municipal governments signed a Letter of Intent (LoI) on September 9, 2003, and a Memorandum of Understanding (MoU) on February 24, 2005, laying the groundwork for cooperation based on (Suroso, 2011).

The initiative to include Saemaul Movement Program in sister province was initiated in September 2007. On September 17-21, 2007 a delegation from the province of DIY visited Gyeongsangbuk-do Province and during that period the delegation and their Korean counterpart agreed to set up a follow up program to introduce Saemaul Movement in Yogyakarta cited in (Suroso, 2011). Saemaul Movement Globalization Foundation Indonesia (Yayasan Globalisasi Saemaul Indonesia/YGSI) was established on 12 March 2016. The foundation is headquartered in the Faculty of Philosophy, Gajah Mada University is engaged, in the field of community empowerment involving the participation of villagers directly. In its activities the foundation collaborates with NGOs and local governments to create an independent village community. A foundation that develops the “Saemaul Pilot Village Development” program that focuses on agricultural development and women’s empowerment activities. The program is implemented in 3 villages (Bleberan, Sumbermulyo, and Ponjong Village) in Special Region of Yogyakarta Province, and 1 village (Tanjungwangi Village) in Subang Regency, West Java Province.

In 2016, Gimcheon City, which belongs to Gyeongsangbuk-do province, established sister city cooperation with Subang Regency, West Java through Saemaul Globalization Foundation (SGF). As a first step, the SGF team conducted a survey to several villages in Subang for 2 days, from 21 to 22 April 2016. The survey took place in 3 villages namely Gandasoli Village, Tanjungwangi Village, and Tambakdahan Village. The SGF team also held a face-to-face meeting with village representatives to receive inputs related to the program, especially in agriculture. In addition to village representatives, the SGF team also held a meeting with the Subang Regency Government, represented by the Family Planning Community Empowerment Sector (BPMKB) expressing the readiness of Subang Regency to contribute to the program that started around September 2016. Each village has its own advantages, Gandasoli Village has abundant cassava harvest while Tambakdahan Village as Indonesian rice barn has the potential to develop native varieties such as brown rice and black rice. Ultimately, Tanjungwangi Village in addition to having a large rice field area also has fish feed from straw left over from the rice harvest which becomes an interesting innovation. From three villages, one village will be chosen as a pilot village with the same model as in Yogyakarta Province.

On 11-16 August 2016, Saemaul Globalization Indonesia Foundation (YGSI) held an audience with the Subang government to discuss cooperation with Saemaul’s pilot village. Based on the results of a survey conducted in May 2016 by the Saemaul Global Foundation (SGF) Korea Team, the village selected as in the “Saemaul Pilot Village Development is Tanjungwangi Village because of the village’s superior product potential, namely fish feed from straw.

In the first year, Tanjungwangi Village plans to create a fish feed program from straw waste. This program was triggered because it saw the abundance of raw materials for making abundant fish feed, namely straw. The raw materials so far still cannot be processed to the maximum, even more often just left alone. Therefore, seeing the potential that has not been worked on, Tanjungwangi village plans to develop fish feed based on straw.

3) Profile of Tanjungwangi Village

Tanjungwangi Village was located in the Subang Regency of West Java Province, in the southern portion of the island of West Java. Tanjungwangi Village is located at 6°35’ 02” south latitude and 107°52’17” east latitude. Tanjungwangi Village had an estimated population of 8.188 people, with land area of 930.108 hectares and a densely populated area of 113 people per square kilometer. Tanjungwangi village is bordered on the north by Parung District. Then there’s the south side, which is bordered by Gunungtua Village. Tanjungwangi shares a western boundary with West Parung District. Tanjung Village shares a boundary with Bantarsari on the east side (<Table 3-4>).

Table 3. Table of demographic profile of Tanjungwangi village
Name of Village Tanjungwangi
Area 930.108
Population 8.188
Male 4.184
Female 4.044
Hamlet Tanjungwangi, Palasari, Babakan Curug, Pangkalan, Balenyengked
Potential of economy Fishery, agriculture
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Table 4. Program planning of Saemaul Movement Project in Tanjungwangi Village 2016 - 2019
No. Program Detail
1 Waste management program (2017) Management and procurement of trash cans
2 Fish seeds (2017) Training and provision of fish seeds
3 Liquid organic fertilizers Training and manufacturing of liquid organic fertilizers
4 Papaya calina (2018) Training and giving calina papaya seeds
5 Catering Training and catering
6 Sewing Sewing training
7 Village-owned enterprise Construction of the village-owned enterprise building and revitalization of the village-owned enterprise
8 Fish feed factory (2019) Factory construction, machine provision, and fish feed processing training

Source: Saemaul Globalization Indonesia Foundation (YGSI) (2016-2019).

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The Village Fund program is used by the Village Government to fund its activities to become a developed village and an independent village. The facts, Village Fund Program supported Saemaul Movement Project for Village Owned Enterprises and the Fish Feed Factory (<Table 5>).

Table 5. The use of village fund program
No Program
1 Procurement of clean water facilities
2 Hot mix road of village
3 Construction of drainage tunnels
4 Construction of a village hall convention
5 Construction of the village-owned enterprise building
6 Bridge maintenance
7 Youth organization training
8 Capital equity of village-owned enterprise
9 Training of effective technology for fisheries/fishermen
10 Coaching family welfare movement
11 Cash assistance for villager

Source: Ministry of Village, Indonesia (2017 – 2020).

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4) Village Fund Program in Indonesia

According to (Ministry of Finance, 2017) The Village Fund will increase each village’s source of income. Increased village income granted by the government to improve community service facilities such as addressing basic needs, strengthening village institutions, and other activities as determined by the Village Planning and Development. However, the establishment of the Village Fund also creates additional issues, as many people are concerned about the Village Fund’s management. According to (Handayani & Badrudin, 2019) Village funds are sourced from the central government (Ministry of Finance) that are distributed to villages in order to build the village. The higher the level of village development, the higher the level of village funds allocated. This increasing level of development has the potential to boost the community’s economic activity. As a result, the greater the village funds, the greater the region’s economic growth.

The use of the Village Fund is prioritized to finance development and community empowerment aimed at improving the welfare of rural communities, improving the quality of human life and reducing poverty and is stated in the Village Government Work Plan. The implementation of activities financed from the Village Fund is guided by the technical guidelines set by the regent/mayor regarding activities financed from the Village Fund. The implementation of activities financed from the Village Fund is prioritized to be carried out self-managed by using local resources/raw materials, and strived to absorb more labor from the local village community.

The Village Fund can be used to finance activities that are not included in the priority use of the Village Fund after obtaining the approval of the regent/mayor by ensuring that the allocation of the Village Fund for priority activities has been fulfilled and/or community development and empowerment activities have been fulfilled. Village funds are allocated as an indicator of the state’s commitment to safeguard and empower villages as they grow in strength, economically advanced, independent, and democratic. Villages can develop and empower themselves by the Village Fund, resulting in a more equitable, prosperous, and prosperous community.

Furthermore, through mentoring and advertising of community crafts, poultry and aquaculture business growth, and improvement of tourism industry with BUMDes (Village enterprise), the village has the potential to create the economy of the community. The best strategy in constructing the village for the community’s welfare is a significant impact of initiative, invention, creativity, and collaboration among rural administrators and the community in accomplishing a specific objective. Rural improvement cannot be passed out simply by rural personnel; it requires support from the community, effort, and involvement.

The results of the study in the Village Fund’s utilization over the last two years (2015-2017) also reveal that the Village Fund has enhanced the standard of living in rural areas, as evidenced by a decline in the percentage of village social inequalities between 0.34 percent in 2014 to 0.32 percent in 2017. The proportion of village poverty has dropped from 17.7 million people in 2014 to 17,1 million people in 2017, and the proportion of people living in poverty has shrunk from 14.09 percent in 2015 to 13.93 percent in 2017. Excellent Village Fund management will be able to expand this accomplishment in the following years.

The requirement to carry out activities with a pattern of self-management, using local labor, and using materials of local standards in the village is an essential factor that may be implemented in the management of Village Funds with community involvement. A self-managed pattern means that the community plans and implements these activities independently, ensuring that the money spent on construction does not leave the village. It is intended that by utilizing local labor, these activities will be able to absorb labor while also providing cash to people who work. While the usage of raw materials was intended to generate income, the raw materials themselves were not expected to provide income.

5) The Similarities and Differences between Saemaul Movement in Korea and Indonesia

Saemaul Movement defines as a community development program which aimed to solve poverty problem in Korea in 1970. Even though Saemaul Movement has the same principle with other community development program, not all of the country can fully implement this program. Each country has different condition and factor with Korea such as economic, social, culture, politic, etc. The adoption of Saemaul Movement has to figure out the similarities condition of recipient country between Korea in 1970 and Saemaul Movement Project recently. Therefore, the condition of recipient country that adopts Saemaul Movement must be fully considered.

Korea is a highly homogeneous country, whereas Indonesia has a wide range of culture diversity and heterogeneous country. In general, Rural Development Program in Indonesia use top-down approach while Saemaul Movement use mixed approach, both of top-down and bottom-up approach. Even tough, there are many differences between adoption Saemaul Movement in Korea and Indonesia. Hence, the importance of the inspiring leader to initiate a rural development, to attract rural people to participate to reach the goal of Saemaul Movement Project successfully. According to (ADB, 2012) discusses the role of government, the effect of leadership, the role of women, ideological considerations, and the availability of resources, especially finance that contribute to community participation in the Saemaul Movement. These factors would determine how the program will succeed even there are different factor and condition in the recipient country specifically for Indonesia.

Indonesia also facing problem and challenges in availability of infrastructure to support improvement economic progress is very limited and must be increased. Limited availability of infrastructure so far is a major obstacle to taking advantage of opportunities in increasing investment and causing expensive logistics costs. Expand the rural economy and develop agricultural sector. Another issue that is still lagging behind and needs attention is efforts to increase productivity agriculture for poor farmers, capture and cultivation fisheries power, and other micro-scale enterprises that support the chain production of small businesses that become potential in the region. Attention also need to be aimed at improving access to land and productive assets that often limit the increase in production and the scale of business of the underprivileged. Availability of facilities and economic infrastructure in rural areas, access to financial services credit and other sources of capital for actor’s rural economy, as well as the use of research and technology agriculture, dissemination and provision of information technology.

According (Anwar, 2011) there are some challenges of Saemaul Movement in Indonesia need to be solved as below:

  1. Improve the government’s commitment and leadership in this movement, as well as incorporating the movement into the government’s strategy to raise people’s welfare by fostering self-help village and community engagement in rural development through the use of existing village institutions.

  2. Regardless of the widespread knowledge among various levels of local government officials, it is still necessary to strengthen the community’s perception of the fundamental principles of the Saemaul Movement.

  3. The requirements for selecting the suitable location and the right program beneficiaries have not yet been explicitly specified.

  4. It must be agreed that sustainability supports are crucial; people’s prosperity, as the program’s ultimate goal, will not be accomplished if there are no sustainable programs.

  5. There are variety of cultural values and livelihood systems, as well as historical factors, that may influence the program in Indonesia for the future such as planning, implementation, and sustainability.


1. Objectives of Study

The methodology in this research uses Quantitative Method with primary data which is relies on objective results derived from numeric data obtained by Likert scale questionnaire. The result indicates that the Saemaul Movement Project encourages people to participate the Village Fund. This study intended to:

  1. Analyze comparison of Saemaul Movement Project and Village Fund Program in Indonesia.

  2. Analyze Saemaul Movement and Village Fund Program in Harmonization.

  3. Analyze the direct effect of Saemaul Movement Participation on Indonesia Village Fund Program Participation.

  4. Analyze Indirect impact indicates the process of mindset transformation.

The purpose of this study is to examine the influence of involvement in the Saemaul Movement Project in Tanjungwangi Village on participation in the Village Funds program to improve the implementation of the Saemaul Movement perception in Indonesia. As a result, the Village Fund Program will be able to improve participation more dynamically and sustainably in the future based on the Saemaul Movement project implementation.

2. Scope and Limitations

The scope of this study aims to analyze community participation/involvement in the rural development program, the Saemaul Movement Project, and the Village Fund Program in terms of delivering precise and comprehensive analyses. The research study began on January until May 2021 at Tanjungwangi Village, Subang Regency, West Java Province, Indonesia. This analysis is representing by data and information of enforcement of Saemaul Movement in 1970 - 1980 (the period of Saemaul Movement concentrated on poverty alleviation in rural communities), Saemaul Movement Project in Indonesia from 2017 to 2020 (the duration for managing the village pilot project), and Village Fund Program in Indonesia from 2015 to 2018 (Village Fund Program launched on 2015). Consequently, the research has limitations due to the coronavirus-19 outbreak to get more respondent to fill the questionnaire and limited data about Village Fund Program in Tanjungwangi Village.

3. Research Question

Based on literature review, focus of this study to answer the research question as follow:

  1. What effect does involvement in the Saemaul Movement have on Indonesia Village Fund Program?

  2. What is the mechanism of Saemaul Movement participation in Indonesia Village Fund Program?

4. Research Methodology

The selection of contributors in the survey and interview stage of this study followed a purposive sampling logic that allowed the choice to be narrowed down to a specific group of persons who can provide an in-depth information in analyzing community participation in rural development program. The respondents of this study were Tanjungwangi Villagers in Subang Regency, West Java Province, Indonesia. The criteria used for the selection include their willingness to participate in the survey and interview, experience, and knowledge in Saemaul Movement Program and Village Fund Program.

A visit to Tanjungwangi Village Government Office and Saemaul Globalization Foundation Indonesia Representative Office in Tanjungwangi Village, allowed the researcher to gather quantitative and qualitative data. A face-to-face interview method allows for using scrutinizing questions to delve deeper into the identified issues. To guide interviewees, some question was also prepared consisting some factors identified from the literature. A total of ninety-nine (99) participants, Tanjungwangi Villagers, Subang Regency, Indonesia were purposively selected for the survey. Saemaul Globalization Foundation Indonesia and Village Government of Tanjungwangi agreed to have an in-depth interview. The duration of the meeting ranges from 25 min to 45 min. Partial Least Square-Structural Equation Method (PLS-SEM) was used in analyzing the survey data gathered in this research. This research utilizes a model created in the PLS-SEM framework to evaluate how the Saemaul Movement Project affects participation in the Village Fund Program. The PLS-SEM design methodology is based on the theory or argumentation. As a result, as provided as the research is based on theory, it is possible to design models with diverse relations among variables. The method in this study is based primarily on the idea of Saemaul Movement spirit, which is used to implement Saemaul Movement as an education programs that changes participant perspective.

After the Saemaul Movement Project in the recipient country is intended to coordinate with community development programs, it might have a direct effect on the host country’s program. Indirect effects from the Saemaul Movement Project to the Village Fund Program, on the other side, might occur through a variety of mediating variables. Saemaul Movement Project’s result and the perception of the Indonesia Village Fund Program are two factors in this study that are expected to have a mediating effect. The outcome in the program is influenced by participation. The rate of participation is influenced by perceptions, which also include expectations. As demonstrated by the adoption of Saemaul Movement mentioned in (Choi, 2016) and (Choi, 2014), the program results influence perceptions (<Figure 1>).

Figure 1. The effect of Saemaul Movement Participation on Indonesia Village Fund program participation (Pramadha, 2018) Note: PGSP =Participation in Saemaul Movement Project PRGSP =Positive Result of Saemaul Movement Project NRGSP =Negative Result of Saemaul Movement Project PPVFP =Positive Perception of Village Fund Program NPVFP =Negative Perception of Village Fund Program PVFP =Participation in Village Fund Program SP =PGSP + 0 PRSGSP =β12PGSP + ε1 NRGSP =β13PGSP + ε2 PPVFP =β14PGSP + β22PRGSP + β33NRGSP + ε3 NPVFP =β15PGSP + β23PRGSP + β33NRGSP + ε4 PVFP =β11PGSP + β21PRGSP + β31NRGSP + β41PPBVFP + β51NPVFP + ε5.
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5. Variable

Variables in this study are calculated using practical criteria, as previously stated. Participation in Tanjungwangi Village Fund Program is the dependent variable in this study, while participation in the Saemaul Movement Project in Tanjungwangi Village, positive and negative results from the Saemaul Movement Project in Tanjungwangi Village and positive and negative perceptions of the Tanjungwangi Village Fund Program are the independent variables. Being educated about the Village Fund program, attending meetings, giving feedback, contributing to the program, and obtaining benefits from the program are all indicators of engagement in the Village Fund program.

Saemaul Movement Project’s positive outcome is estimated based on variables such as increased income, job opportunities, improved living conditions, and increased knowledge of rural community development programs. This variable’s indicators are based on the Saemaul Movement idea. Village Fund Based on these indicators, as well as competent administration and leadership, the Village Fund Project has a positive perception, as it shares the exact ultimate goal as the Saemaul Movement as a community development project.

Saemaul Movement Project’s negative outcomes are calculated using variables such as dependency, societal conflict, increased inequality, and becoming a source of fraud and corruption. The indicators were derived from aid literature, such as the Saemaul Movement Project and the Village Fund Program. Furthermore, the implementation of a community development program in Indonesia revealed certain unfavorable consequences, such as social strife/conflict and fraud/corruption (<Table 6>).

Table 6. Summary of explanation according (Pramadha, 2018)
Type of variable Construct/variable Indicator/criteria
Dependent variable Participation in village fund program (PVFP) Fully informed about village fund program (PVFP1)
Participate to attend the meeting program (PVFP2)
Sharing Idea and opinion about the program (PVFP3)
Support and contribute in program implementation (PVFP4)
Knowing and understanding the utilization of the Village Fund Program (PVFP5)
Accept benefit of village fund program (PVFP6)
Independent variable Factor of internal Data of Age: (<25, 26-35, 36-45, 46-55, above 56)
Data of gender: (female/male)
Data of household in family number (2/3/4/5)
Less than Rp 1,000,000
Rp 1,000,000 – Rp 2,000,000
Rp 2,000,000 – Rp 3,000,000
Rp 3,000,000 – Rp 4,000,000
More than Rp 4,000,000
Status of marriage: married/unmarried
Employment: (farmer, civil servant, labor, police, entrepreneur)
Level of education:(elementary, junior high school, senior high school, undergraduate, graduate)
Independent variable Positive perception of Tanjungwangi village fund program (PPVFP) Increase the number of job (PPVFP1)
Increase earnings/income (PPVFP2)
Improving quality of living condition (PPVFP3)
Well organized and managed well (PPVFP4)
Instructed by great leader (PPVFP5
Negative perception of Tanjungwangi village fund program (NPVFP) Increase dependency on government aid (NPVFP1)
Trigger social strife/social conflict (NPVFP2)
Intensify inequality (NPVFP3)
Increase source of fraud/corruption (NPVFP4)
Participation in Saemaul Movement Project in Tanjungwangi (PGSP) Fully Informed about Saemaul Movement Project (PGSP1)
Participate to attend meeting project (PGSP2)
Sharing idea and opinion in the project (PGSP3)
Making contribution implementation project (PGSP4)
Getting advantage and benefit of Saemaul Movement Project (PGSP5)
Positive result of Saemaul Movement Project in Tanjungwangi village (PRGSP) Increase the number of job (PRGSP1)
Increased earnings/income (PRGSP2)
Improved quality of living condition (PRGSP3)
It increase public awareness and concern about development (PRGSP4)
It improves perception of well-being (PRGSP5)
Negative result of Saemaul Movement Project Tanjungwangi village (NRGSP) Increase dependency on government aid (NRGSP1)
Trigger social strife/social conflict (NRGSP2)
Intensify inequality (NRGSP3)
Increase source of fraud/corruption (NRGSP4)
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1. Result

Questionnaire’s survey employs Simple Random Sampling, in which the researchers select a subset of participants from a larger population at random. Every individual in the population has probability of being chosen. There are 99 participants from this research study, as indicated in Table 7, with diverse personal feature profiles. The participants ages ranging from 17 to 80, with participants aged 36 to 45 years old accounting for the majority of the survey’s 46 participants. There were additional 23 people aged 46 to 55 who took part in the survey. This result is close to the average population of Tanjungwangi village, which has individual who are productive between the age of 36 and 45 years old. About gender, there are 79 male participants, which is higher than the number of female participants, with a ratio of 79 to 20 participants. Senior high school, with 43 participants, is followed by junior high school, with 34 participants, elementary school is 14 participants, and undergraduate level, with only three participants (<Table 7>).

Table 7. Profile of respondents in Tanjungwangi village
Variable Frequency Percentage
Age < 25 6 6.06
26 - 35 14 14.14
36 -45 46 46.46
46 - 55 23 23.23
Above 56 10 10.1
Gender Female 20 20.2
Male 79 79.9
Education Elementary 21 21.2
Junior high 34 34.3
Senior high 36 36.4
Diploma 3 5 5.05
Undergraduate 3 3.03
Occupation Student 2 2.02
Public officer 2 2.02
Entrepreneur 27 27.2
Private sector worker 4 4.04
Army/police 1 1.01
Farmer 32 32.3
Manufacturer labor 9 9.09
Breeder 3 3.3
Trader 10 10.1
Other 9 9.9
Marriage status Unmarried 12 12.12
Married 87 87.88
Monthly Income Less than Rp 1,000,000 37 37.3
Rp 1,000,000 - Rp 2,000,000 35 35.3
Rp 2,000,000 - Rp 3,000,000 17 17.1
Rp 3,000,000 - Rp 4,000,000 5 5.05
More than Rp 4,000,000 5 5.05
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The most prominent employment among participants is farm worker (34 participants), pursued by entrepreneurship (27 participants), and trader (13 participants). The distribution of participants’ occupations signifies the community in that terms of the ratio of farmworkers and entrepreneurship. A total of 87 participants were married.

The descriptive statistics of the survey will describe first in this section. The survey collects responses on four topics: participating in Saemaul Movement Project, Saemaul Movement Project Results, Village Fund Program Perception, and Village Fund Program Participation. The responses extend from Very Agree (VA), Agree (A), Neutral (N), Disagree (D), and Very Disagree (VD) (<Table 8>).

Table 8. Indicator in descriptive statistic
Valid 99 99 99 99 99 99 99 99 99 98
Missing 0 0 0 0 0 0 0 0 0 1
Mean 4.1 3.46 3.53 3.57 3.87 3.74 3.69 3.91 3.97 3.81
Median 4 3 3 4 4 4 4 4 4 4
Mode 4 3 3 4 4 4 4 4 4 4
Std. 0.63 0.73 0.73 0.67 0.75 0.8 0.79 0.55 0.75 0.63
Deviation 0.4 0.54 0.54 0.45 0.56 0.64 0.62 0.3 0.56 0.4
Variance - 0.08 0.28 0.23 - 0.08 0.05 - 0.85 - 1.06 - 0.82 - 0.4 - 0.85
Skewness - 0.46 - 0.19 - 0.27 - 0.14 -0.85 1.1 0.59 2.79 - 0.03 1.59
Std. error 0.06 0.07 0.07 0.07 0.07 0.08 0.08 0.06 0.08 0.06
Minimum 3 2 2 2 2 1 2 2 2 2
Maximum 5 5 5 5 5 5 5 5 5 5
Valid 99 99 99 99 99 99 99 99 99
Missing 0 0 0 0 0 0 0 0 0
Mean 2.36 2.09 2.46 1.62 3.61 3.65 3.93 3.76 3.73
Median 2 2 2 1 4 4 4 4 4
Mode 2 2 3 1 3 4 4 4 4
Std. 0.85 0.82 0.96 0.71 0.77 0.7 0.53 0.59 0.66
Deviation 0.72 0.68 0.92 0.5 0.59 0.49 0.28 0.34 0.44
Variance 0.23 0.39 0 0.89 0.23 - 0.31 - 0.07 - 0.22 - 1.15
Skewness - 0.49 0.24 - 0.93 0.19 - 0.5 0.05 0.61 0.2 2.82
Std. error 0.09 0.08 0.1 0.07 0.08 0.07 0.05 0.06 0.07
Minimum 1 1 1 1 2 2 3 2 1
Maximum 4 5 4 4 5 5 5 5 5
Valid 99 99 99 99 99 99 99 99 99 99
Missing 0 0 0 0 0 0 0 0 0 0
Mean 2.48 2.04 2.3 1.74 4.08 3.35 3.4 3.52 3.70 3.80
Median 2 2 2 2 4 3 3 4 4 4
Mode 2 2 2 2 4 3 3 4 4 4
Std. 0.91 0.73 0.92 0.85 0.47 0.63 0.62 0.64 0.54 0.72
Deviation 0.82 0.53 0.85 0.72 0.22 0.39 0.39 0.42 0.29 0.52
Variance 0.8 0.91 1.04 1.84 0.28 0.57 - 0.02 - 0.1 - 0.5 - 0.18
Skewness 0.83 1.48 0.71 4.97 1.54 0.34 - 0.26 - 0.18 0.09 - 0.16
Std. Error 0.09 0.07 0.09 0.09 0.05 0.06 0.06 0.06 0.05 0.07
Minimum 1 1 1 1 3 2 2 2 2 2
Maximum 5 4 5 5 5 5 5 5 5 5
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However, the results of NRGSP4 and NPVFP1, which represent the Village Fund Program’s negative result in terms of rising inequality and the Saemaul Movement Project’s negative result in terms of expanding inequality, respectively, show an unexpected conclusion. The findings of the two constructs appear to support the idea that both community development programs promote inequality among villagers. It is demonstrated by the fact that the mean is more than 3, the mode is four, and the median is four. Nonetheless, the fact that the value of variance and standard deviation are both more than one indicates that this result is not yet reliable) (<Table 9>).

Table 9. Model of assessment
Full Model Adjusted Model
Variable Outer loading Composite reliability Average variance extracted Outer loading Composite reliability Average variance extracted
I. Participation in Saemaul Movement Project 0.856 0.544 0.865 0.675
PGSP1 Fully informed about Saemaul Movement Project 0.630 -
PGSP2 Participate to attend meeting program meeting attendance 0.758 0.781
PGSP3 Sharing idea and opinion in the project 0.708 0.784
PGSP4 Making contribution implementation project 0.810 0.812
PGSP5 Getting advantage and benefit of Saemaul Movement Project 0.774 0.760
II. Positive Result of Saemaul Movement Project 0.912 0.674 0.912 0.675
PRGSP1 Increase the number of job 0.842 0.847
PRGSP2 Increased earnings/ income 0.830 0.835
PRGSP3 Improve quality of living condition 0.787 0.790
PRGSP4 Increase public awareness and concern about development 0.795 0.785
PRGSP5 It improves perception of well being 0.848 0.848
III. Negative result of Saemaul Movement Project 0.822 0.539 0.833 0.624
NRGSP1 Increase dependency on government aid 0.719 0.752
NRGSP2 Trigger social strife/social conflict 0.845 0.853
NRGSP3 Intensify inequality 0.721 0.762
NRGSP4 Increase source of fraud/corruption 0.634 -
IV. Positive perception on village fund program 0.842 0.528 0.867 0.620
PPVFP1 Increase the number of job 0.807 0.820
PPVFP2 Increased earnings/ income 0.819 0.838
PPVFP3 Improve quality of living condition 0.759 0.749
PPVFP4 Well organized and managed well 0.759 0.739
PPVFP5 Instructed by great leader 0.388 -
V. Negative perception on village fund program 0.800 0.523 0.855 0.663
NPVFP1 Increase dependency on government aid 0.326 -
NPVFP2 Trigger social strife/social conflict 0.866 0.865
NPVFP3 Intensify inequality 0.795 0.820
NPVFP4 Increase source of fraud/corruption 0.776 0.754
VI. Participation in village fund program 0.822 0.454 0.861 0.674
PVFP1 Fully informed about village fund program 0.263 -
PVFP2 Participate to attend the meeting program 0.740 0.789
PVFP3 Sharing Idea and opinion about the program 0.813 0.874
PVFP4 Support and contribute in program implementation 0.779 0.797
PVFP5 Knowing and understanding the utilization of the village fund program 0.676 -
PVFP6 Accept Benefit of Village Fund Program 0.617 -
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Table illustrated that the full model, which includes all variables, is evaluated first, and then the adjusted model is assessed secondly. The Composite Reliability and Average Variance Extracted values must be seen first in the entire model. If the Composite Reliability and Average Variance Extracted values are less than the acceptable limit, outer loadings are considered to eliminate the latent variable from the framework. If Composite Reliability and Average Variance Extracted are high, it suggests the manifest variables have to describe latent variables due to their lower value, considering such elimination non-essential in this circumstance.

As can be observed in the table only Average Variance Extracted value of Participation in Saemaul Movement Project (PVFP1) that is lower than required value (0.263). Therefore, full model need some by removing manifest variable that have Outer Loading’s value lower than 0.7. Found out that value Outer Loadings of PPVFP 5 (Instructed by great leader Village Fund Program) and NPVFP 1 (Increase dependency on government aid) are lower than 0.7 that are 0.388 and 0.326 respectively. All Composite Reliability and Average Variance Extracted calculated using the adjusted model excluding PGSP1, PVFP1, PVFP5, and PVFP6. All latent variables had extracted values greater than 0.7 and 0.5, respectively. It indicates that every variable remains valid and reliable. Therefore, when the outer loadings are less than 0.7, the manifest variable doesn’t have to be omitted.

After the evaluation of the model, the next step is the construct evaluation. Constructed assessments consist of Collinearity concerns, R Square, Path Coefficient, F Square, and Q Square. Measuring the value of VIF is used to assess collinearity concerns. <Table 10> shows the outer model’s VIF outcomes. PRGSP5, PRGSP1, and PRGSP2 are the only three latent variables with a VIF value greater than 2. (2.463, 2.648, and 2.895). It signifies that there is a difficulty with collinearity between the two variables. Therefore, the value is still less than 5, the concern is not substantial, and the model can be released.

Table 10. Outer model of VIF result
Latent variables VIF Latent variables VIF Latent variables VIF
PGSP1 - NRGSP1 1.261 NPVFP1 -
PGSP2 1.651 NRGSP2 1.480 NPVFP2 1.807
PGSP3 1.614 NRGSP3 1.460 NPVFP3 1.512
PGSP4 1.738 NRGSP4 - NPVFP4 1.402
PGSP5 1.555 PPVFP1 1.842 PVFP1 -
PRGSP1 2.648 PPVFP2 1.795 PVFP2 1.441
PRGSP2 2.895 PPVFP3 1.611 PVFP3 1.854
PRGSP3 1.827 PPVFP4 1.701 PVFP4 1.541
PRGSP4 1.736 PPVFP5 - PVFP5 -
PRGSP5 2.463
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The R square measures a model’s ability to articulate its independent variable. <Table 11> also reveals that the framework in this study is invalid at attempting to explain the variance of the dependent variable. The only difference that has been well-explained is Village Fund Program for negative perception (0.529). Around 40% of the variance in positive perceptions of the Village Fund Program and participation in the Village Fund Program accounted for it. Although for positive and negative Saemaul Movement Project results indicate a weak clarification of variance of.0.141 and 0.050 in each.

Table 11. R square in model constructed
Variable R square Adj R square
Participation in Saemaul Movement Project
Positive result of Saemaul Movement Project 0.141 0.132
Negative result of Saemaul Movement Project 0.050 0.040
Positive perception on village fund program in Indonesia 0.440 0.423
Negative perception on village fund program in Indonesia 0.529 0.514
Participation in village fund program in Indonesia 0.460 0.435
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The justification of a low R Square is prevalent in experimental studies, and this research is complete to look into the possibilities of how involvement in the Saemaul Movement Project affects participation in the Village Fund Project. The inner model path coefficient, as well as the t-statistic, p-value, and f square, are illustrated in <Table 12>. The path coefficient indicates the direction of the correlation meanwhile, the t-statistic and p-value indicate the significance of the correlation. F squared depicts the size of the independent variable’s effect on the dependent variable. These five significant positive correlations can be detected using the t-statistic and p-value. The first is involvement in the Saemaul Movement Project and the Village Fund Program, both of which have a p-value of 0.00 and a path coefficient of 0.620. Therefore, suggests that participants who take part in the Saemaul Movement Project are more willing to engage in the Village Fund Program.

Table 12. Inner model path coefficient
Hypothesis Path Path coefficient1) T-statistics2) P-value3) F-squared4) Decision
H1 PGSP → PVFP 0.620 6.545 0.000 0.45 Significant
H2 PGSP → PRGSP 0.375 3.939 0.000 0.167 Significant
H3 PGSP → NRGSP - 0.224 1.386 0.166 0.0527 Not significant
H4 PGSP → PPVFP 0.409 4.876 0.000 0.2416 Significant
H5 PGSP → NPVFP 0.266 2.444 0.015 0.1214 Significant
H6 PRGSP → PVFP - 0.158 1.850 0.065 0.323 Not significant
H7 PRGSP → PPVFP 0.364 4.928 0.000 0.2014 Significant
H8 PRGSP → NPVFP 0.221 2.925 0.004 0.0881 Significant
H9 NRGSP → PVFP 0.240 2.353 0.019 0.0491 Significant
H10 NRGSP → PPVFP -0.103 1.282 0.201 0.0180 Not significant
H11 NRGSP → NPVFP 0.667 6.509 0.000 0.8897 Significant
H12 PPVFP → PVFP 0.290 3.112 0.002 0.0811 Significant
H13 NPVFP → PVFP -0.188 1.906 0.057 0.0286 Not significant
Hypothesis Path Path Coefficient T-Statistics P-Value Decisions
H14 PGSP → PRGSP → PVFP - 0.059 1.457 0.145 Not significant
H15 PGSP → NRGSP → PVFP - 0.053 1.089 0.276 Not significant
H16 PGSP → PPVFP → PVFP 0.118 2.592 0.009 Significant
H17 PGSP → NPVFP → PVFP - 0.049 1.476 0.140 Not significant
H18 PGSP → PRGSP → PPVFP → PVFP 0.0396 1.952 0.051 Not significant
H19 PGSP → PRGSP → NPVFP → PVFP 0.015 1.338 0.181 Not significant
H20 PGSP → NRGSP → PPVFP → PVFP 0.006 0.715 0.474 Not significant
H21 PRGSP → NRGSP → NPVFP → PVFP 0.028 1.010 0.312 Not significant

Path coefficient: In PLS path analysis the significance of the path coefficients can be tested by the bootstrap algorithm. The number of bootstrap subsamples were 5,000 based on (Hair et al., 2011). It can be stated that all of the paths are significant.

T statistic: The value was to indicate the dependent variable (Endogen variable) significant (>1.96) or not significant (<1.96).

P value: P value test. To conduct a test of the hypothesis that β > 0, at the 0.05 significance level (i.e., 1-95%), we calculate the one-tailed P value associated with the path coefficient.

F square: is effect size (> = 0.02 is small; > = 0.15 is medium; > = 0.35 is large). f-square measured variance explain each exogenous variable in the models.

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With a p-value of 0.001 and a path coefficient of 0.375, involvement in the Saemaul Movement Project has positive effects on the project’s results of Saemaul Movement (PGSP→PRGSP). Furthermore, the positive outcome of the Saemaul Movement Project will boost participants’ positive perceptions of the Village Fund Program, as evidenced by the Positive Result in Saemaul Movement and Positive Perception on VFP (PRGSP→PPVFP) with a p-value of 0.00 and path coefficient of 0.364. As a result of the positive perception of the Village Fund Program, more people will get to participate in it. Positive Perception on VFP Participation on VFP with a p-value of 0.081 and a path coefficient of 0.290 validates this. Negative Result in Saemaul Movement to Negative Perception on Village Fund Program (NRGSP→NPVFP), on the other hand, with a p-value of 0.889 and a path coefficient of 0.667, demonstrates that negative outcome will lead to an increase in negative perception in the Village Fund Project and indicates the Village Fund Program have social impact in creating dependency problem on government aid.

In accordance with the <Table 12>, indirect impact of Saemaul Movement involvement on Village Fund Program participation via mediator variables such as Saemaul Movement in positive or negative outcomes, positive or negative perceptions of Village Fund Program is not significant. However, with a p-value of 0.009 and a path coefficient of 0.118, the mediating impact between the positive perception of the Village Fund Program and the participation in Village Fund Program have significant result.

As specified by (Cohen, 1988) claimed that f-squared values of 0.02, 0.15, and 0.35 represent small result, medium result, and large result of impacts of an exogenous latent variable on an endogenous latent variable, respectively. If the effect size is smaller than 0.02 then there should be no effect. As a result of the f-squared values of 0.45 and 0.88, it can be deduced from <Table 13> that the results of the Saemaul Movement Project have a strong positive and negative impact on perceptions of the Village Fund Program. Furthermore, a negative Saemaul Movement result has a significant impact on negative perceptions of the Village Fund Program (0.88).

Table 13. Comparison Saemaul Movement project and village fund program from 2015-2018
Period Saemaul Movement Project in 1970-1979 Village fund program (2015 - 2018)
Overall Objective Enhance the quality of life through poverty alleviation 1. Improving public services in the village
2. Poverty alleviation
3. Promote rural economy
4. Improving Inequality development gaps in the villages
5. Strengthening rural communities as subjects of development
Effectiveness Transformation from recipient country to ODA (Official Development Assistance) country ODA recipient and contributed in SDGs (Sustainable development goals)
Self-help approach Principle Self help, diligence, and cooperation Recognition, togetherness, subsidiarity, diversity, mutual cooperation, kinship, deliberation, democracy, independence, participation, equality, empowerment, and sustainability.
Beneficiaries Rural areas will be the initial focus, followed by urban regions for a nationwide program. All of the villages in province, in regency, in city all over Indonesia
Villagers participation in large numbers Villagers participation in large numbers
Financial resources Government support & self-sufficiency Government fully funded supported
Institutional coordination Stakeholder engagement All main stakeholders were involved and participated in the planning, execution, and evaluation stages. From planning, implementing, administration, reporting and accountability
Linkages among institutions There are strong vertical and horizontal links between the institutions. Weak in vertical approach and Strong in horizontal approach between institutions
Lead agency Ministry of home affairs Ministry of Finance, Ministry of Village, Ministry of Home Affair
At the local level, Saemaul Movement has an administrative agency and a local council. Local government in the city and regency
Implementation approach Approach Approaches from top-down and bottom-up Approaches from top-down and bottom-up
Project design The president launched a national policy frameworks for community (village) development. Medium Term National Development Planning (RPJMN) for all of village in Indonesia from 2015 until present
Strategy Community participation and decentralized program Community participation and decentralized program
Project implementation have four step to do. The implementation of the project have two steps
According to the growth level of the community, it was classified as a basic, self-developing, or self-reliant village. Based on: number of villagers, rural poverty rate, village area, and the geographical difficulty of the village.
Project The government suggests 40 projects, which the villagers contribute to, however the villagers select which improvements are necessary for the community. In 2018 the project was implemented in 33 provinces, in 434 cities, 73.218 villages, total allocation 60 Trillion Rupiah
The program’s focus was on reliability and long-term sustainability. Projects with a low chance of succeeding and a significant output and result were applied first, followed by the hard ones. In 2015-2016 project with high return of outcome in 2015-2016:
- Village road 95.2 thousand km,
- Bridge 914,000 meter
- Waterways 22.616 unit
- Revolution village 1.338 unit
- Village health clinic 4,004 unit
- Village market 3,106 unit
- Draw well 19.485 unit
- Drainage and Irrigation 103,405 unit
Project have high risk in implementation, however supervising by Audit Board Agency
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2. Discussion

The participation experience in the Saemaul Movement Project has a positive influence to Tanjungwangi Residents’ participation in the Village Fund Program, according to data analysis utilizing the Partial Least Square-Strutural Equation Model. Villagers are more inclined to join in the Village Fund Program if they are involved in the Saemaul Movement Project. This section delves into the how and why of this kind of positive influence. Saemaul Movement has a positive effect on Tanjungwangi Village, as evidenced by the positive effect of the Saemaul Movement Project on the Village Fund Program.

This study indicates that involvement in a community development program has a significant impact on the program’s outcome. Participation is critical to the community development program’s success. It helps to improve the livelihood of a community by motivating individuals to help themselves. As a result, residents will benefit unless if they join the community development program. Villagers’ perceptions of the Village Fund Program variable have a positive influence on the outcome of the Saemaul Movement Project variable. Villagers were encouraged to be optimistic about the Village Fund Program after receiving a positive effect from the Saemaul Movement Project. Villagers have shown how a community development program may help them live a better life through the Saemaul Movement Project.

Due to the positive outcome of the Saemaul Movement Project and positive opinion of the Village Fund Program, the overall impact of the indirect effect is methodically being insignificant. This discussion will concentrate on the direct effect of the Saemaul Movement Project’s participation in the Village Fund Program, as well as the relatively little indirect effect of the Saemaul Movement Project’s participation in the Village Fund Program.

1) Analyze Comparison Saemaul Movement Project in 1970-1979 and Village Fund Program in Indonesia

Implementation of Saemaul Movement and Indonesia Village Fund have strengths and weaknesses to overcome poverty problem. Many aspects must be improved considerably to be a successful program to achieve the goals and outcomes in the future and sustainably (<Table 13>).

2) Saemaul Movement Project and Indonesia Village Fund Program in Harmonization

Through a case of direct influence, the Saemaul Movement Project and the Village Fund Program are both community development programs that follow an identical pattern. As a result, participants will become accustomed to the program and engage in similar tasks as they did in an alternative program. Furthermore, because both programs work in a comparable area, there are opportunities to harmonize the programs. This is demonstrated by the Saemaul Movement Project’s plan to build a multifunctional building and a fish feed production house in Tanjungwangi. The Tanjungwangi village administration asked to participate in these events by Saemaul Global Foundation. According to findings, the Tanjungwangi village administration provided 120 million Rupiah from local funds to the building project. Saemaul Global Foundation granted responsibility and authority to Tanjungwangi Village-Owned Enterprises once the building and Fish Feed Production House completed.

The mechanism of the Tanjungwangi village Saemaul Movement Project corresponds to the 2015 UNDP-proposed Inclusive Sustainable New Community model. Harmonization activity in the Saemaul Movement Project and the Village Fund Program is a practice in policy entry strategy. The Saemaul Movement Project does not have to establish a new program in the receiving country, instead it is encouraged to identify and harmonize policies that are compatible with the Saemaul Movement principle.

3) Indirect impact indicates the process of mindset transformation

The indirect influence from Saemaul Movement to Village Fund Program moderated by the outcome of Saemaul Movement and the perception of the Village Fund Program. This illustrates that the Saemaul Movement Project has influenced the Village Fund Program thru the learning system, indicating a shift in mindset. Villagers gain knowledge through training, development projects, and, most importantly, participation in the Saemaul Movement Project. Job possibilities, more earnings, improved living standards, and enhanced awareness of improvements are outcomes of the program. As a result, participants’ perspectives on community development change, and their positive opinion of Village Fund evolves, encouraging them to engage the Village Fund Program. Perception is positively associated with the positive impact of the Saemaul Movement Project, referring to the PLS-SEM. The accomplishment of the Saemaul Movement Project will give Tanjungwangi residents a positive perspective of the Village Fund Program. This demonstrates that Saemaul Movement’s efforts to change mindsets have significantly increased residents’ understanding of the community development program. With a positive perception, means villagers have slightly elevated expectations for the Village Fund Program. Indirect Effect indicates the process of mindset transformation. The findings of this study indicated that the Saemaul Movement participation on Indonesia Village Fund Program made a significant contribution to village development from an economic, social, and political aspect. In terms of economics, accessibility and efficiency are improving. Social impacts can boost social capital and have an impact in the political domain, offering potential opportunities for community participation in development.

According on this result, the concept of the Saemaul Movement can be used to improve involvement in community development programs. Community development as an education program is a key aspect of the Saemaul Movement for increasing participation. Throughout this concept, education for villagers’ mindset transformation is done through field projects rather than only teaching in the class. Sharing knowledge from the Saemaul Movement with Village Fund Program policymakers may be a good way to start implementing the Saemaul Movement concept into the Village Fund Program. According to the findings of this study, beneficial perception has a positive impact on participation in the Village Fund Program. Based on the research findings, the government should strengthen the reputation of the Village Fund Program to encourage people to participate. Saemaul Movement as a technique for improving perspective, which is to create the Village Fund Program as an academic program. Those activities of learning, coaching, and capacity development are carried out in the fields rather than in the classroom. Executing projects, gaining a satisfying perception, and reaping the benefits are all aspects of education. Residents may only comprehend the necessity of involvement in the Village Fund Program after experiencing the benefits of great efforts. Residents are inspired to participate in future community development program activities of their experiences with it.


1. Conclusion

Using the PLS-SEM, this study investigates the impact of Tanjungwangi villagers’ involvement in the Saemaul Movement Project on Indonesia Village Fund Program in terms of improving the relevance of the Saemaul Movement Principle in Indonesia. A Likert scale questionnaire was used to collect data on Tanjungwangi villagers’ perspectives on their participation in the Saemaul Movement Project and the Village Fund Program, as well as the results of the Saemaul Movement Project and their assessment of the Village Fund Program.

The impact of involvement in the Saemaul Movement Project on participation in the Tanjungwangi Village Village Fund Program was measured using a quantitative formula in this study. The quantitative research method is based on objective outcomes resulting from numerical data collected via a Likert scale questionnaire. The data from the questionnaire will be evaluated using the Partial Least Squares-Structural Equation Method, a descriptive statistical technique.

The Saemaul Movement Pilot Project in Tanjungwangi Village has direct and indirect positive effect on the Village Fund Program concerning involvement, according to the findings of this study. Direct impact occurred as a result of harmonizing that both community engagement and the indirect effect occurred as a result of positive aspects that tends to result from the execution of the Saemaul Movement Project and enhanced perspective of the Village Fund Program, which signifies a perspective change effort. Improved implementation strategy of the Saemaul Movement Project, attempting to bring a positive value that supports development such as self-help, diligence, cooperation, and perseverance in performing the Saemaul Movement Project are the factors that have a positive impact on participation in the Village Fund Program.

2. Recommendation

Following the examination of the influence of involvement in the Saemaul Movement Project on participation in the Village Fund Program, this section will provide recommendations for improvements in participation in community development programs in Indonesia, particularly the Village Fund Program. Given the favorable impact of the Saemaul Movement Project on Village Fund Program participation, the sustainability of the Saemaul Movement Project in Indonesia is a smart plan. With the help of the Saemaul Movement Project, the Village Fund Program in Indonesia can be strengthened. Decision-makers in the Village Fund Program can gain knowledge more about the Saemaul Movement Project’s implementation in enhancing the Village Fund Program’s application. The success narrative and expertise of the Saemaul Movement Project will be shared with a larger audience in Indonesia, allowing more people to learn about community development.

Scaling up the Saemaul Movement Project, which has had a beneficial impact at the local level in some pilot villages, should be explored in the coming year. Enhancing the transmission of the Saemaul Movement Project’s achievements by people and the government, from the local levels to the country levels, demonstrate the project’s genuine benefits, will encourage the village to engage in Saemaul Movement willingly. The organizers of the Saemaul Movement Initiative in Indonesia, on the other hand, should use a competitive system to carry out the project, with the best village receiving additional funding.

The discovery that the Saemaul Movement Project in Tanjungwangi Village influences participation in the Village Fund Program through favorable Saemaul Movement results and positive perceptions of the Village Fund Program demonstrates that the effect is mediated by residents’ thinking. As a result, the Village Fund Program should be conceived as a teaching tool. Villagers’ awareness of the advantages of community development programs, as well as their willingness to participate in them, must be maintained through all events. Furthermore, Saemaul Movement’s information sharing with policymakers should be stepped up in enhancing the concept of Indonesia’s Village Fund Program and increase participation rates. Increase collaboration between the Saemaul Movement Project and the Village Fund Program, as both are community development initiatives.

Furthermore, because the limitation in this study is only one village, research in another location using the different method could provide a different result. The conclusions of this study not to be accepted as a general conclusion in other regions. As a result, research in a different location will improve our overall understanding of community participation. To obtain an accurate result, the addition of more respondents should be considered. Some recommendations for ideal sister city cooperation, as well as future research, include:

  1. Conducting additional research into the case study between the two cities in order to make it more sustainable in the future. It will be determined whether there are any improved adjustments in improving the collaboration process based on the scope of different village projects and the evaluation of implementation in the first village. This can contribute to the central development village development cooperation strategy in a positive way.

  2. Conducting comparative study in terms of completing cooperation between Indonesia and South Korea by examining at sister-city and sister-province cooperation in other village or country.

In the future, rural community development projects should be directed to community needs (needs assessment), with active community and local government participation, so that the program may be expected to be sustainable. Program integration must be adequately designed, involving technical offices/sectoral agencies in the regions, to eliminate ego sector so that the program can run successfully and profitably, reducing people’s reliance on government social assistance. Program starting institutions and program implementing agencies must be supported by clear and operational regulations in order for the program to function dynamically.



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