Strengthening the Rural Digital Economy through Institutional Development with an Asset-Based Community Development (ABCD) Approach: A Case Studyin a District, Jember Regency

Abstract

This community service research aims to analyse the process and results of strengthening the village community's economy through institutional development and the implementation of digital economic education using the Asset-Based Community Development (ABCD) approach in Silo District, Jember Regency, Indonesia. The information and communication technology revolution has opened significant opportunities for creating new jobs and addressing structural economic problems in rural Indonesia. However, the utilization of digital spaces in rural areas often remains supplementary and has not become the primary locus for economic empowerment. The research employs a participatory qualitative method with an ABCD approach, comprising three main stages: identification and consolidation of community assets; asset development through strategic training, mentoring, and provision of technology access; and the implementation of advocacy and digital economic literacy education. Research results indicate that the ABCD approach successfully consolidated key village assets, including internet infrastructure, village government authority, formal/non-formal educational institutions, universities, civil society communities, and village facilitators. This consolidation resulted in the formation of a new institution named KOMANDO SWADAYA DESA (Komandasa), which functions as a forum for advocacy and rural creative economy literacy. This institution is structured with two main divisions---the Advocacy Division and the Literacy Division---and has established a routine work agenda. Analysis using Talcott Parsons' social systems theory reveals that Komandasa plays a role in enhancing the adaptation, goal attainment, integration, and latency (pattern maintenance) functions of the village social system in the era of digital disruption. This research concludes that the ABCD approach is effective in building digital economic institutions based on local assets, which not only improves digital literacy but also strengthens the economic resilience of rural communities. It is suggested that similar institutions can be replicated in other rural areas by conducting in-depth studies of specific local conditions, developing measurable strategies, and strengthening multi-stakeholder partnership networks.