Building collaborative rural economies from below: An integrated institutional development model

Teguh Kurniawan; Syifa Amania Afra; Ega Wahyudi; Yohani Ebiantari; Imam Fajri; Raynilda Siringoringo

doi:10.23812/ssd8741

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Synergizing climate action: Integrating renewable energy, and biodiversity conservation for sustainable development

Coordinated actions to protect biodiversity, incorporate renewable energy, and implement climate action are needed for sustainable development to be achieved in the context of global challenges like climate change, ecosystem destruction, and resource depletion. Climate action seeks to reduce the negative impact and strengthen the adaptive capacity of natural and human society. Climate action includes both adaptation and mitigation strategies. The transition to renewable power sources is of utmost importance to climate action because it helps to slow environmental degradation, curtail fossil fuel dependence, and significantly diminish greenhouse gas emissions. The adoption of renewable energy, such as solar, wind, and hydropower, is more environmentally friendly than conventional energy sources, but it may also pose potential risks towards biodiversity, so measures should be taken in planning to avoid negative environmental impacts. It is crucial to protect biodiversity around the world because it plays an important role in the delivery of ecosystem services such as soil fertility, pollination, water purification, and the sequestration of carbon that are vital to people’s existence. In addition, strong ecosystems reduce the severity of climate change impacts, such as storms, droughts, and flooding. However, there may be trade-offs when striving for the increase of renewable energy and biodiversity conservation. Renewable energy development should always be complemented with biodiversity protection. This approach preserves the environmentally delicate ecosystems that are crucial to achieving climate action targets. The combination of climate action, renewable energy, and the need for biodiversity makes it possible to reap many benefits. These include stronger ecosystems and better human health, as well as economic growth and job creation. One example of such a nature-based solution is agrovoltaics, which combines solar energy production and farming. Restoring ecosystems, like forests or wetlands, can also greatly enhance carbon sequestration, reduce global warming, and protect endangered wildlife. This strategy aligns with international initiatives such as the United Nations Sustainable Development Goals (UN SDGs), specifically SDGs 7, 13, and 15. It serves as a building block towards a more sustainable future. Despite the clear possibilities of synergy, there are still barriers that must be tackled. Policy fragmentation, resource competition, and lack of inter-sector cooperation are some of the challenges that inhibit effective integration. Therefore, equitable governance and the adoption of nature-based techniques are essential.

Building collaborative rural economies from below: An integrated institutional development model

Teguh Kurniawan, Syifa Amania Afra, Ega Wahyudi, Yohani Ebiantari, Imam Fajri, Raynilda Siringoringo

Article ID: 8741
Vol 4, Issue 5, 2026

DOI: https://doi.org/10.23812/ssd8741

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Abstract

Rural economic development in many developing countries remains constrained by fragmented institutions, weak inter-organizational coordination, and persistent top-down approaches. In Indonesia, Village Law No. 6/2014 has expanded village autonomy and fiscal capacity, positioning village-owned enterprises (BUMDes) and cooperatives as strategic actors in strengthening local economies. Yet collaborative arrangements at the village level remain underdeveloped, particularly in transmigration areas marked by socio-economic diversity and institutional complexity. This study examines the Palolo transmigration area in Sigi Regency, Central Sulawesi, and proposes the Integrated Institutional Economic Development Model (IIEDM), which combines New Institutional Economics, Social Capital, Endogenous Regional Development, and Local Economic Development within a co-creation governance approach. Using a sequential explanatory mixed-methods design, it pairs institutional assessments across the four IIEDM dimensions with perception surveys of village heads, BUMDes managers, and cooperative leaders, complemented by in-depth interviews and focus group discussions. The findings show that the principal constraints derive from structural weaknesses in the LED and ERD dimensions rather than from a lack of institutional or social potential. Although social capital remains relatively strong, it has not been mobilized to sustain inter-organizational collaboration, and existing arrangements insufficiently reduce coordination frictions among local actors. The study argues that co-creation processes; joint problem identification, shared institutional design, and sustained multi-actor engagement are essential for transforming fragmented economies into integrated systems, offering policy-relevant insights for transmigration and developing-country contexts.

Keywords

village-owned enterprises (BUMDes); cooperatives; co-creation governance; social capital; transmigration areas; inter-organizational coordination; decentralization

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Supporting Agencies

Ministry of Transmigration the Republic of Indonesia; Universitas Indonesia

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The editorial team of SSD is delighted to congratulate our Editor-in-Chief, Professor Kittisak Wongmahesak, on his outstanding achievement in the Top 1000 Scholar rankings.

2025-11-10

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