The Influence of Agrosilvopasture Implementation and MSME Incubation on SDGs with Financial Literacy Mediation in Rural Areas of Indonesia

Abstract

This research explores the roles of Agrosilvopasture, MSME Incubation, and financial literacy in supporting Sustainable Development Goals (SDGs) in rural Indonesia. Conducted from April to September 2023 in Pagar Alam City, the study involves the participation of indigenous communities and stakeholders associated with customary forest management, comprising 100 intentionally selected respondents. The Slovin formula was employed to determine the number of respondents in the sample, who were then selected using a purposive sampling technique from the community of customary forest managers in Mude Ayek Tebat Benawa. The research investigates the relationships among variables: Implementation of Agrosilvopasture (X1), MSME Incubation (X2), Financial Literacy (M), and SDGs (Y). Path coefficient analysis reveals that Agrosilvopasture has a significant negative influence on Financial Literacy but a positive impact on SDGs. The analytical tool utilized is Partial Least Squares-SmartPLS. MSME Incubation yields a favorable impact on both Financial Literacy and SDGs. Financial literacy, consequently, has a beneficial impact on the SDGs. Mediation testing validates that Financial Literacy serves as a mediator in the relationship between Agrosilvopasture and the examined outcomes. MSME Incubation, and SDGs. In conclusion, financial literacy, Agrosilvopasture implementation, and MSME Incubation are crucial for achieving SDGs in rural areas. These holistic approaches offer promising pathways to achieve various SDGs, and in enhancing the effectiveness of these strategies financial literacy plays a pivotal role.