How Community-Based Tourism Transforms the Local Economy of Jagara Village, Indonesia

Facing towards the majestic Gunung Ciremai, the highest mountain in West Java, lies the enchanting reservoir called Waduk Darma that fascinates all eyes with its stunning scenery.

Facing towards the majestic Gunung Ciremai, the highest mountain in West Java, lies the enchanting reservoir called Waduk Darma that fascinates all eyes with its stunning scenery. The tranquil water that reflects the vibrant color of the sky, complemented by a cold yet soothing breeze. Thanks to the geographical blessings surrounding Waduk Darma with a group of hills, Waduk Darma is an ideal spot for one’s brief escape from the hustle of everyday life. Located in Jagara Village, Kuningan, West Java, Indonesia, Waduk Darma has become one of the leading tourist destinations attracting visitors who seek a serene escape in nature. No wonder the attractiveness around Waduk Darma makes Jagara Village one of Indonesia’s renowned Desa Wisata – or Tourist Villages. However, this title signifies much more than just its name. It also highlights the community’s remarkable potential to improve the lives of its residents through collective action. With the establishment of the Village-Owned Enterprise, known as Badan Usaha Milik Desa or Bumdes for short, this collective action has been brought to life by this institution in empowering the community. By actively engaging residents in the strategic planning and development of tourism initiatives, there has been a notable increase in household incomes, leading to an improvement in the village economy. This approach is also known as Community-Based Tourism (CBT).

What is CBT?

According to Goodwin and Santili (2009), Community-Based Tourism (CBT) can be defined as tourism owned and/or managed by communities and intended to deliver wider community benefits. Unlike conventional tourism, which often neglects the rights of local communities in tourist destinations, this form of tourism emphasizes the involvement of community members in the planning and management processes, ensuring that the locals have a significant role in the tourism activity. According to Timothy (as cited in Nurhidayati, 2007), this involvement can manifest in two forms, which are local participation in the decision-making process and local participation related to the benefits received by the community from tourism development. Both forms of participation aim to ensure that tourism activities’ economic, social, and environmental advantages are shared more fairly among local communities. Beyond economic gains, CBT also fosters social cohesion, preserves cultural heritage, and promotes environmental responsibility. Additionally, Hausler (as cited in Nurhidayati, 2007) argues that CBT can empower communities politically by fostering a more democratic environment, including a fairer distribution of tourism-generated profits among residents.

As a sustainable alternative to conventional tourism, CBT closely aligns with global initiatives such as the Sustainable Development Goals (SDGs) framed in the United Nations agenda. Additionally, the CBT model is increasingly being integrated into various international and regional frameworks, including those in the United Nations World Tourism Organization (UNWTO), APEC, and ASEAN. These frameworks emphasize the crucial role of CBT in fostering local empowerment, focusing on preserving cultural heritage, promoting environmental sustainability, and ensuring equitable economic growth through tourism activities.

CBT initiatives also have been integrated into national tourism policies to promote sustainable development and community participation. In Indonesia, The CBT model has been embodied in The Regulation of the Minister of Tourism and Creative Economy Number 11 of 2022. In this regulation, CBT became one of the strategic paradigms in tourism development. CBT is regulated as a model that places local communities as the main actors, aiming to improve community welfare and involvement in managing tourist destinations. CBT in this regulation is implemented through the development of geotourism, tourism villages, and other forms of tourism that emphasize sustainability and social and environmental responsibility.

How has CBT been successfully implemented in different countries?

Within the global tourism landscape, CBT has gained recognition worldwide for its ability to empower local communities while preserving cultural and natural heritage. Several countries have successfully implemented CBT as part of their tourism development strategies, adapting its principles to their unique cultural and environmental contexts. One notable example of its successful implementation can be seen in the Chã de Jardim community in Areia, Paraíba, Brazil (Abreu et al., 2024). This rural community has effectively integrated CBT principles by promoting sustainable agricultural practices, developing local gastronomy, and offering eco-tourism experiences. Through initiatives like the Vó Maria restaurant, which serves traditional dishes made from locally sourced ingredients, and guided ecological trails in the Mata do Pau Ferro State Park, the community has fostered sustainable development while preserving its cultural and natural heritage. The CBT initiative in the Chã de Jardim community has directly and indirectly created over 40 jobs. Additionally, the local farmers and artisans benefit from increased sales due to the influx of tourists, boosting household incomes.

How does CBT in Jagara Village work?

While conducting her community service for 50 days at Jagara Village, the author observed there were several initiatives aimed at improving the economic quality in the village that Bumdes initiated. According to Indonesia’s Government Regulation No. 11 of 2021 regarding Village-Owned Enterprises, Bumdes is a legal entity established by the village and/or village associations to manage businesses, utilize assets, develop investment and productivity, provide services, and/or provide other types of businesses for the greatest possible welfare of the village community. One of the key initiatives led by Bumdes in Jagara Village is how Bumdes has been actively engaging residents in the strategic planning and development of tourism initiatives by making the local community investor in tourism sites. Through mutual collaboration, this action allows residents to contribute capital for developing tourist attractions, and once the initial investment is recovered, a revenue-sharing scheme is implemented. Under this scheme, a portion of the profits goes directly to the individual investors, while another portion is allocated to the village’s original revenue or Pendapatan Asli Desa . This approach not only enhances community engagement in tourism development but also ensures that the economic benefits are distributed fairly among the villagers, fostering a sense of ownership and long-term sustainability in the local tourism sector.

During an interview (29/01) conducted by the author with the Executive Director of Bumdes of Jagara Village, Sofyan, he emphasized the importance of self-sufficiency in village development, reducing dependency on government funding, and leveraging local resources for economic growth. He outlined various initiatives, such as waste management programs, floating restaurants, and eco-tourism projects, which aim to enhance community welfare and create sustainable income sources. He also highlighted that several collaborations, particularly through Memorandums of Understanding (MoUs), have been established between Bumdes and the local community to support tourism development. These partnerships include jeep tours, boat, and cruise services, some of which are owned by residents to facilitate tourism activities. To further enhance the village’s appeal, Bumdes has also introduced tour packages on their social media featuring various engaging activities such as camping, batik-making workshops, and fun games; all organized by a local event organizer called Laskar Tutut based in Jagara Village. By collaborating with local entrepreneurs and tourism operators, these initiatives have led to a significant increase in community profits which then boosted the village’s original revenue. The funds generated have been reinvested into various development sectors, contributing to the growth of Jagara Village.

The case of Jagara Village demonstrates how CBT can serve as a transformative force in local economic development. By integrating tourism initiatives with strong community participation, sustainable business models, and strategic collaborations, Bumdes has successfully empowered residents while preserving the village’s cultural and natural assets. The revenue-sharing approach and partnerships with local entrepreneurs have not only increased household incomes but also contributed to the village’s overall infrastructure and well-being. As a model for other rural communities, Jagara Village shows that when nature meets an empowered community, tourism can evolve into a sustainable driver of economic growth and cultural preservation. With continued innovation, Jagara Village’s CBT framework has the potential to inspire other regions to embrace tourism as a tool for inclusive and responsible development.

Hanny Nurfiani
Hanny Nurfiani
Hanny is a third-year undergraduate International Relations student at Universitas Gadjah Mada, Indonesia, with a keen interest in development studies, peace and conflict studies, and global governance.