Towards Inter-Village Collaboration In Sustainable Economic Development: How Does Local Commitment And Participation Make Everything Appear Simple?

This research analyses and elaborates on the local engagement of communities and government in Kulonprogo to
escape the poverty zone and measures to accelerate their local economic development. It presents chances and
challenges for local governments to meet their own needs, beginning with the movement of power implementation
from centralization to decentralization. Local governments are projected to be more sensitive to regional poverty
issues due to fiscal decentralization and the granting of the authority to plan, devise, and implement policies consistent
with regional needs. Data ware gathered through in-depth interviews, FGDs, and the distribution of questionnaires to
the research subjects. Data processing was performed using the SmartPLS program and Structural Equation Modeling
(SEM). A comprehensive investigation of three factors and support for fifteen indicators was conducted. The results
revealed a significant association between local participation and measures of governance, authority, and local organizations as they pertain to promoting sustainable economic development. Strengthening local participation
arrangements that impact every authority and obligation of each interest in the administration of local assets, namely
natural and human resources, requires prudent and efficient management. This outcome will directly impact the local
economic system and will gradually enhance their economic standing, allowing for eventual stakeholder support and
cooperation.