Crowdfunding for Rural Development and its Problems- A Community Based Tourism Model to Foster Rural Economics Independence

The global discourse on sustainable development increasingly emphasizes integrating local community-driven initiatives to achieve long-term economic and environmental resilience. Community-Based Tourism (CBT) is recognized as a transformative approach that optimally balances socio-economic benefits while minimizing adverse environmental impacts (Moscardo, 2008; Ruiz-Ballesteros & Hernndez-Ramrez, 2010). This model enables local communities to leverage their unique cultural and natural assets for tourism, strengthening their capacity to manage resources effectively and sustainably (Stronza, 2008). However, CBT also faces notable challenges, such as weak marketing, limited profitability, and uneven distribution of benefits, which may undermine its effectiveness (Beaumont & Dredge, 2010; Blackstock, 2005; Goodwin & Santilli, 2009).

The case of Sekapuk village in Gresik Regency, Indonesia, illustrates how CBT, combined with innovative mechanisms like crowdfunding, can address these challenges while fostering economic self-reliance. Sekapuk's transformation from a disadvantaged area into a thriving tourist destination exemplifies how community-driven tourism can revitalize local economies and protect environmental resources. The village's initiatives, including the reclamation of former mining sites for tourism, highlight the potential of CBT to promote sustainability and economic empowerment simultaneously.

Challenges of Local Governance in Community-Based Tourism

Despite the successes of CBT in Sekapuk, the village has recently faced governance challenges that threaten its progress. These challenges emerged following the conclusion of the term of its former village head, Abdul Halim, whose leadership was pivotal in transforming the village's tourism sector. Accusations of mismanagement and alleged embezzlement of village assets have sparked tensions within the community, leading to legal actions and public disputes.

The governance vacuum caused by the delayed election of a new definitive village head has exacerbated these issues, highlighting the importance of stable leadership in sustaining community-driven tourism initiatives. According to Ross (2012), effective governance and the optimization of local resources are essential for achieving sustainable development in rural areas. The absence of a clear leadership figure in Sekapuk underscores how governance instability can hinder social transformation and disrupt the operational continuity of CBT projects.
Governance Disputes: Allegations and Legal Proceedings

The current challenges in Sekapuk began with allegations against Abdul Halim for mismanagement during his tenure. Accusations included the embezzlement of village assets, such as nine land certificates and three vehicle registration documents (BPKB), as well as irregularities in the financial management of the village-owned enterprise (BUMDes). Residents alleged that these assets were pledged as collateral for loans taken to fund BUMDes operations, raising concerns about transparency and accountability in the village's financial management.

The community's dissatisfaction culminated in a formal complaint and subsequent legal proceedings. Audit findings from the regional inspectorate revealed discrepancies, including a lack of supporting financial documentation for expenditures amounting to IDR 12 billion. This included allegations of inflated construction costs, such as an IDR 500 million culinary facility project that experts estimated to cost only IDR 300 million. These revelations have intensified community demands for accountability and justice, creating a challenging environment for the continuity of CBT initiatives.

The Role of Community in Addressing Governance Issues

Community involvement remains central to addressing the governance challenges faced by Sekapuk. Residents have actively participated in forums and discussions facilitated by the Department of Community and Village Empowerment (PMD), seeking solutions to the issues of mismanagement and asset recovery. This participatory approach aligns with the principles of CBT, which emphasize local ownership and collective decision-making.

Despite the controversies, Sekapuk residents have demonstrated resilience and determination to protect their tourism achievements. Community stakeholders have called for transparency and equitable resolution of financial obligations, ensuring that the burden of debt repayment does not fall disproportionately on the village or its residents. This reflects the importance of strong community participation in maintaining the integrity and sustainability of CBT projects.

Koleksi Pribadi Penulis

The Transformation of Mining Sites into Tourism Destinations

Sekapuk's success in repurposing former mining sites for tourism is a testament to the village's innovative approach to resource optimization. The reclamation of limestone quarries, previously used as waste disposal areas, has created unique tourism attractions such as Setigi and Kebun Pak Inggih (KPI). These sites have not only generated significant economic benefits for the community but also contributed to environmental restoration by rehabilitating degraded landscapes.

This transformation aligns with the Brundtland Report's (1987) principles of sustainable development, which advocate for meeting present needs without compromising the ability of future generations to meet theirs. By integrating environmental stewardship with economic development, Sekapuk has demonstrated how marginalized resources can be reimagined as valuable assets for tourism.

Economic Benefits of Crowdfunding for CBT

Crowdfunding has played a crucial role in financing Sekapuk's tourism projects, enabling the village to mobilize resources for infrastructure development and community programs. Residents were encouraged to invest in tourism initiatives through a shareholding model, which promised dividends based on the profits generated by BUMDes operations. While this model initially fostered community engagement and collective ownership, recent disputes over profit distribution and debt repayment have highlighted the need for greater financial transparency and accountability.

Platforms like Kiva have shown how crowdfunding can empower communities in underdeveloped regions by providing capital for projects tailored to local needs. In Sekapuk, crowdfunding has not only facilitated the development of tourism infrastructure but also strengthened community cohesion by fostering a sense of collective responsibility.

Cultural and Environmental Challenges

As tourism grows in Sekapuk, balancing cultural preservation with environmental sustainability has become a pressing challenge. The commercialization of tourism poses risks to the village's cultural authenticity, while increased visitor numbers can strain local resources and infrastructure. Strategies such as implementing visitor caps, promoting eco-friendly practices, and preserving traditional cultural elements are essential to mitigate these risks and ensure the sustainability of CBT initiatives.

The allegations of governance mismanagement have further complicated these efforts, diverting resources and attention away from sustainable tourism development. Addressing these challenges requires a renewed focus on participatory governance and inclusive decision-making to align tourism activities with the community's values and environmental priorities.

Governance Instability and Its Impact on CBT

The delay in electing a definitive village head has created a leadership vacuum in Sekapuk, undermining the continuity of social transformation efforts. This instability has highlighted the critical role of effective governance in sustaining CBT initiatives. Without a clear leadership structure, the village faces difficulties in maintaining operational consistency, resolving disputes, and implementing long-term strategies for tourism development.

The controversies surrounding Abdul Halim's tenure also underscore the importance of transparent governance mechanisms in building trust and accountability within communities. Establishing clear policies and oversight structures can help prevent similar issues in the future and ensure that CBT initiatives remain focused on their social and economic objectives.

Lessons for Other CBT Initiatives

Sekapuk's experiences offer valuable lessons for other CBT initiatives, particularly in managing governance challenges and ensuring sustainability. The integration of crowdfunding into tourism development demonstrates the potential of innovative financing mechanisms to empower communities and mobilize resources. However, these models must be accompanied by robust governance frameworks to ensure transparency, accountability, and equitable benefit distribution.

The village's efforts to reclaim marginalized resources for tourism also highlight the importance of aligning development initiatives with local cultural and environmental values. By prioritizing community participation and sustainability, CBT can serve as a powerful tool for rural development and economic independence.

Policy Implications and Future Directions

To sustain CBT initiatives in Sekapuk and similar contexts, policymakers must prioritize governance reforms that promote transparency, accountability, and inclusivity. Strengthening community participation in decision-making processes can enhance trust and ensure that tourism activities align with local needs and values. Additionally, investing in capacity-building programs and technical assistance can empower communities to manage their resources effectively and sustainably.

Cross-regional collaborations and knowledge-sharing platforms can also facilitate the exchange of best practices and innovative solutions. By learning from Sekapuk's successes and challenges, other CBT initiatives can develop more effective strategies for promoting sustainable tourism and rural development.

This writing highlights the transformative potential of CBT as a model for rural development and economic self-reliance. Sekapuk's experiences demonstrate how community-driven tourism initiatives can address pressing social, economic, and environmental challenges while fostering resilience and sustainability. However, the village's recent governance disputes underscore the importance of transparent and participatory governance mechanisms in ensuring the long-term success of CBT initiatives.