Abstract
The development of home industries based on cultural values is one of the strategies used by the Indonesian government to alleviate poverty in rural communities. In the development of home industries, a model of cultural transformation based on local wisdom offers opportunities for communities to show their local identity and local potential as well as displaying their own uniqueness. The goal of this research is to discover how the transformation of local culture based on local wisdom takes place in the development of home industries in rural communities. The research method is qualitative and uses a case study approach which examines the shift in cultural values and the importance of local wisdom in the development of home industries. In this case study, the data collection includes various sources, such as observation, interviews, FGDs, audio visual material, documents, and reports. The research results show that the development of home industries in rural areas is full of dynamics in the cultural transformation from an agrarian culture to an industrial culture. This cultural transformation has a multiplier effect and acts as a trigger and determining factor in rural development.
Highlights
Industries in Indonesia are regulated in Law No 3 Year 2014 about Industry
Industrialization helps with economic growth and the development of various economic activities such as trade, agriculture, transportation, and entrepreneurship, supporting the growth and development of the national economy [6], [7], but since the 1990s, the social stratification that has taken place has focused on social and cultural factors as the cause of inequality [8]
The objective approach, which is often referred to as a behaviouristic and structural approach, assumes that human beings are passive, while the subjective approach considers that research with a case study is conducted to examine and interpret the shift in cultural values taking place and the importance of local wisdom in the development of home industries
Summary
Industries in Indonesia are regulated in Law No 3 Year 2014 about Industry. Industry encompasses all forms of economy activity that process raw materials and/or utilize industrial resources to produce goods that have added value or higher benefit, including industrial services [1]. It is hoped that the presence of the industrial revolution 4.0 and society 5.0 will provide a positive value for MSMEs in developing their activities in rural areas that are far from urban centers and untouched by communication technology infrastructure [2]. In social and cultural aspects there are striking differences between modern industrial communities, which are more modern by nature, and more traditional farming communities. This has unknowingly led to a number of quite fundamental changes in the structure and social values of the family unit and the community [3]. The positive impact of this change is that it has improved the economy of these communities, created jobs, empowered human resources, and led to modernization [5]. Industrialization helps with economic growth and the development of various economic activities such as trade, agriculture, transportation, and entrepreneurship, supporting the growth and development of the national economy [6], [7], but since the 1990s, the social stratification that has taken place has focused on social and cultural factors as the cause of inequality [8]
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