Ultra-Micro-Business Algorithm: Village Economic Metabolism in the Coastal Area

Abstract

Indonesia is an archipelago country having two-third of the ocean, which encourages an GDP increase through the development of marine products and fisheries, but in reality, coastal areas have not been able to utilize their resources, which leads to five percent of GDP compared to the potential of 1.3 times GDP or 130 percent. However, today in some coastal areas in Indonesia ecological threats damages the environment, ecosystems, flora, and fauna, which leads to climate change and loss of productive land due to anthropogenic behavior. Marine management is to ensure the sustainability of fish resources and the environment as the carrying capacity of marine and fisheries communities, especially in coastal areas, ultimately produces economic resources sourced from the resources and biodiversity. This chapter focuses on the coastal area of Tangerang Regency of Indonesia that is actually the gateway to Indonesia because it is adjacent to Jakarta, the capital of Indonesia. It is important to initiate a coastal area realignment program with the concept of redesigning society by involving all stakeholders through a Social Network Analysis approach (SNA).

1. Introduction

1.1 Global south and north

Globalization that has been since the 1980s comes from the word global that means universal in one word that can be articulated as borderless, no barriers, and distances as if the ball ripped through the goal net forms networks and social interactions. Globalization a social phenomenon that was born in the twenty-first century through an egalitarian spirit toward a new modernity, apparently also creating a divergence between the northern regions that in fact are developed countries and the southern regions that symbolize Third World countries. In fact, compared to the global north the countries in the south region has a tool of investment.

The book entitled “A Brief Guide to Global Inequality and its Solutions” written by Jason Hickel [1], one of the Professor from the Institute for Environmental Science and Technology of the University of Barcelona and he is also an economist whose writing focuses on economic issues of anthropology, inequality, imperialism, and political economy, saying: The strong narrative of framing aid from rich countries and international donors to poor countries through the act of pouring funds up to billions of dollars reflects so many aid flows, as if to give the image that rich countries have contributed so much to poor countries as well as developing countries.

The trend of inequality can be felt by increasing the number of poverty rates from the 80s to the 90s based on the basic figures released by the World Bank, namely US $ 1.90/day, the significant difference in per capita income between the global north and south gives a hint as if colonialism occurred, and the south is made a playground for investment but on the contrary does not create prosperity.

Many world economists disagree that a country’s economic growth is a mirror of a country’s economic fundamentals not as great as the Government says with a series of publication figures such as everything controlled by numeric? Evidence shows that economic growth is often unable to solve the problems of poverty and unemployment, disparities in the production of service goods, and inequality in one region to another, and even inequality occurs in one country that is geographically a source of raw material supplies.

Another reference relating to the present situation is The Winners Take All: The Elite Charade of Changing the World by the author Anand Giridharadas [2] in his review writing about the investigation of how the efforts of global elites to “change the world” maintain the status quo and obscure their role in causing problems that they then want to solve, an important read to understand some of the horrific abuses of power that dominate the news today.

1.2 China’s growth

A country that has experienced a pace of economic growth in the last five decades obtained through an increase in GDP can be seen in the chart below (Figure 1).

Figure 1.

GDP growth of China.

The average GDP earned by China in the last 50 years was 8% was in 2007 reaching 14.2% until the COVID-19 pandemic hit with the worst achievement in 2020 worth 2.2% in its economic history and then back increase again to 8.1% in 2021.

The accelerated pace of China’s economic growth is inseparable from the contribution of small medium enterprise (SMEs) with the growth of the increase in the number of SMEs. Based on data in Q1 of 2022 every year, there are around five million more SMEs in China, representing at least ten percent year-on-year (YoY) growth rate. Since the economic reform in China 40 years ago or 30 years after China’s independence, SMEs have become one of the driving forces of the economy. In 2019, the number of SMEs is estimated to be more than 38 million. In Beijing alone, there are more than 3100 industrial SMEs that generated more than $2.8 billion in annual revenue in 2017 from a GDP of $6.9 billion in the same year (Figure 2).

Figure 2.

Number of small medium Enterprises in China Last Decade. Source: Statista, 2022.

SMEs are important for economic development in China. Today, SMEs represent more than 90 percent of companies. They also contribute more than 60 percent to GDP and contribute 80 percent of national jobs. Thus, MSMEs play an important role in economy to promote economic growth, create employement, push for innovation, and generate a healthy environment for inclusive and sustainable economic development [3].

However, the SME cycle in China is often hindered by rising costs, financing difficulties, and limited innovation capacity. To support the growth of SMEs, the Chinese government decided to reduce the minimum mandatory demand requirement ratio as well as readjust tax policy in early 2019. Another strategy to bring together MSEs and investors is to open a Stock Exchange, for example Shenzhen which is centered in a city centered in Shenzhen one of the three stock exchanges in China besides the Shanghai Stock Exchange and the Hong Kong Stock Exchange. The Shenzhen Stock Exchange is the ninth largest stock exchange in Asia by market capitalization. The strategy is dedicated to attracting more SME investors as well as in China’s fast-growing e-commerce economy, and some SMEs have developed their B2B e-commerce platforms to expand their sources of income. The revenue from this e-commerce platform is expected to reach 6.4 billion U.S. dollars in 2020¹.

China’s economic landscape is not symmetrical to other countries in South Asia including developing countries such as Indonesia. Another strategy from China in the global fight is the Belt and Road Initiative (BRI) that is a grand design in terms of President Xi Jin Ping’s geo-political strategy to penetrate a number of countries with yuan deposits in the form of loans in infrastructure projects such as roads, bridges, railways, and ports, and if we observe closely the aggressiveness of China’s investment and trade today to various countries, especially countries in the South Asian region, which are carried out by state-owned enterprises of the Chinese government, this is China’s geo-economic strategy. It is not enough just to invest, but another target is the distribution channel for goods and services for their SMEs which are strongly supported by the government, on the other hand this can potentially become an economic threat to countries that receive investment and distribution of goods and services.

1.3 Global inequality

Economic by the theory is a push margin, for that it is important to be careful and must realize that the ecological dimensions of the earth are layered such as Donut, inhabited by billions of populations with the support of social foundations (energy, water, food, housing, and so on) and ecological ceilings (land, water resources, air) whose function is like oxygen for people’s lives.

While in other parts, the structure of world society today is like the shape of a supposed pyramid, in which few of the world’s population are able to control large resources; on the contrary, poor people with a sizable population are at the bottom level of the pyramid. The question then there is the problem of inequality and there must be something wrong in the system.

The World Bank groups the population into three groups according to the size of the income: 40% of low-income residents, 40% of middle-income residents, and 20% of high-income residents. The gap is based on income, which describes the distribution of income in a community in an area or region at a certain time. In Indonesia, one fundamental cause is the income inequality that occurs in Indonesia, namely due to the lack of attention to small and medium enterprises (MSEs), and high economic growth will be meaningless if income equality is not distributed properly. In other words, well-being can only be felt by a handful of people.

Farhad Rassekh, a Professor of Economics at the Barney School of Business University of Hartford, wrote four theories about market economics (2016). In an occasion delivering his presentation at the University of Texas, he said “Free-trade does not necessarily mean free everything, it does not necessarily mean free migration, it does not mean free follow up capital to cross countries but focus on the free flow a goods and services. Trade promotes economic growth through labor productivity and investment against significantly income inequality in Indonesia”.

Indonesian government policy with the availability of abundant natural resources focusing on interventions to rural areas where natural resources are located. The government focuses on efforts to increase the IDM scale (Village Development Index), which is built through three measurement variables, namely the Social Resilience Index, Economic Resilience Index, and Environmental Resilience Index.

The framework of government programs is primarily ensuring the accuracy of intervention on target by taking into account the characteristics of the village region, namely typology and social capital, although the government is aware of the implementation of programs faced with the challenges encountered such as the ability of human resources, technology, culture and various other dimensions.

Therefore it is very important to restore the metabolism of rural communities in facing of these complex matters to ensure that the national program policies implemented in the Local Government’s Medium-Term Development Plan will encourage the improvement and growth of the village economy.

The huge of state’s assets dominated by the area of maritime, especially in coastal areas, is an opportunity as well as challenges in line with the aggressiveness of regional development carried out through government programs and the private sector, is one of the potential threats is loss of the livelihoods of the people from marine and fisheries product which incidentally is buffer the basic needs of urban communities as well as other problems such as the potential for climate and environmental change.

Several world rating institutions such as Standard & Poor and Moody often release the results of their research and convey information about the status of the condition of a developing country, including Indonesia in terms of finances that are most likely to be proven but inversely proportional to the actual facts.

Indonesia must re-recognize the nation’s identity as a large nation with two-thirds of the sea area, which is the largest archipelagic country in the world, the sea that stretches from west to east Indonesia has 17,499 islands with a total area of about 7.81 million km2, of which 3.25 million km2 is the ocean and 2.55 million km2 is the Exclusive Economic Zone, while only about 2.01 million km2 is land area, so vast is the sea area that adA reflects having enormous marine and fisheries potential².

This book tells about Banten which is one of thirty-four provinces in Indonesia and is located near the Sunda Strait, which is a national and international trade route for the Indonesian Archipelago Sea Channel (ALKI), and the Banten sea area is one of the potential sea routes. The Sunda Strait is one of the strategic sea traffic routes because it can be passed by large ships connecting Australia and New Zealand with Southeast Asia, for example, Thailand, Malaysia, and Singapore, thus making the position of the Banten Province very strategic, as well as one of its areas, namely Tangerang Regency.

Tangerang Regency as part of Tangerang Raya is the only area that has a water area in the form of an ocean area of 377.40 km 2 with a coastal area of 298.52 km2 based on the administration of the sub-district in Tangerang Regency consisting of 7 glasses and 23 peisisir villages consisting of Kronjo District, Mauk District, Kemiri District, Sukadari District, Pakuhaji District, Teluk Naga Subdistrict, and Kosambi Subdistrict [6].

Indonesia, which is 2/3 of the ocean, has great potential for an increase in GDP through the development of marine products and fisheries, but in reality coastal areas have not been able to utilize the advantages of their resources in the fact that it is less than 5 percent of GDP compared to 1.3 times GDP or 130 percent This chapter focuses on the coastal area of Tangerang Regency of Indonesia, which is actually the gateway to Indonesia because it is adjacent to Jakarta, the capital of Indonesia.

2. Rural coastal area: geo-economy and global race

An ecoton are areas of steps transition between ecological communities, ecosystems, or ecological regions along an environmental gradient [7].

The history of Indonesia’s sea area located on the islands that existed during the era of President Soekarno’s rule did not belong to Indonesia, but at that time Prime Minister Juanda said that this was not true and asked a young man named Mochtar Kusumaatmadja who was diligent in learning about international law of the sea to continue to carry out international diplomacy and in the end then the term. Wawasan Nusantara is the idea of Indonesia’s territorial boundaries through the Djuanda Declaration in 1957, which is legendary and a world topic even though at first many countries opposed it and did not approve of it but in the end with a long struggle at the UN conference, Professor Mochtar Kusumaatmadja who at that time was the Minister of Foreign Affairs met American State Secretary George Shultz could claim that the sea inside the islands belonged to Indonesia and became an archipelagic country. All of that is mentioned in the United Nation on The Law of the Sea convention.

The sea area within Indonesia’s territory is traffic for world economic trade, considering that Indonesia has five sea within the country’s territory and this is hardly found in other countries; in general, other countries only have straits. The question then is how to leverage the power of geography into economic strength? We know that in the world there are six major straits or the term major straits because they are traversed by large ships such as tankers, mother vessels, such as Suez and the Panama straits. Four of the six straits are located in the Indonesian region, such as the Strait of Malacca, the Sunda Strait, the Makassar Strait, and the Lombok Strait. It is conceivable that if Japanese commercial ships descend from the north into the Makassar Strait into the Middle East and into Europe, while Australia wants to send its goods to China, it will pass through the Lombok Strait and Makassar Strait, while in the Malacca Strait Chinese ships entering from the South China Sea descend toward natuna and it can be imagined if thousands of ships a year pass through Indonesian territory.

How important the straits in Indonesia are for other countries such as China and Korea as a producing country that exports its goods to Africa, Europe and America always pass through the Strait of Malacca, until this triggers China to control it because it greatly affects the country’s economy.

The description above reveals how powerful Indonesia’s underwater treasures are, how bile is utilized and can be utilized for the benefit of the entire population, but not only under the sea, other economic sources from coastal areas have unusually high economic value, there will be no imports of salt, tuna, and so on, and all are met and even able to meet the needs of the population and the world market; not the other way around, the task increases due to damage to marine ecosystems and anthropogenic or human actions or activities either intentionally or unintentionally and carried out continuously, which have a bad influence on society because it triggers or accelerates the occurrence of disasters ([8], p. 248).

The sea is the source of life of the country and its main community in coastal areas that limit land and oceans is an ecotone area or meeting area of two ecosystems and is a buffer for the stability of terrestrial and marine ecosystems for that it needs to be preserved so that it continues to be productive and its biological resources can be utilized for the prosperity and welfare of marine biodiversity and there are various potentials such as energy, food, amenities, and many more that can be converted into goods of high economic value, not counting the marine service sector.

3. Economic landscape and its challenge in the coastal area

Producing various services for humans, various sources of life come from marine such as food sources and connectivity media as well as services in terms of protection of economic assets such as coastal protection, erosion control, and pollution control devices.

Marine management is a pattern to ensure the sustainability of fish resources and the environment as the carrying capacity of marine and fisheries communities, especially in coastal areas, which ultimately produces economic resources sourced from the use of resources and biodiversity. Indonesia is the country with the second longest coastline ownership in the world after Canada; however, the management of coastal areas with this length has not been optimally utilized evenly, and only 55 percent of the potential existing resources are utilized. Development in all sectors in coastal areas has contributed a lot to marginalizing local communities who generally have activities as traditional fishermen and leaving aside the sustainability of environmental ecosystems and natural habitats. Having the opportunity to live in a country that has the longest coastline in the world is a matter of pride for the people of Indonesia. This is because the length of the coastline indicates the length of the chain of socioeconomic life of the community.

Supriharyono in Syahrin [9] defines a coastal area as a meeting area between land and sea toward land coastal areas covering parts of land, both dry and submerged in water, which are still influenced by marine properties such as tides, sea breezes, and saltwater seepage. Meanwhile, toward the sea, coastal areas include parts of the sea that are still influenced by natural processes that occur on land such as sedimentation and freshwater flows, as well as those caused by human activities on land such as deforestation and pollution.

Coastal communities are compound communities that generally consist of fishermen, fish farmers, fish processors, traders, and dockers, as well as other professions. Coastal communities are often matched with an economy that is not yet prosperous and environmental health that is not yet decent, as well as low education. The dynamics of coastal communities with the complexity of the problems faced require a comprehensive strategy to be able to escape such social problems, not to mention other problems such as poverty levels due to economic uncertainty, damage to coastal resources from destructive management, and environmental health from the impact of waste, as well as the use of marine areas for fishermen open access and limited open access.

3.1 Challenge

The problems faced in the management of coastal and marine areas, especially in Indonesia, are dual utilization, unbalanced utilization, the influence of human activities, and pollution of coastal areas. Common problems faced by coastal communities include poverty levels (economic uncertainty), damage to coastal resources, and environmental health, as well as the use of marine areas for fishermen (open access and limited open access).

However, the problems of stimulating development in efforts to grow the village economy in coastal areas generally include several things such as: rising costs or prices due to inflation, financing difficulties, and limited innovation capacity strongly influenced by internal and external factors.

Through its “economic system as it is today” pushing the gap bigger and bigger between rich and poor, the population of rich people as little as it looks like a system does not work well, which then the sharp difference gives birth to the concept of poverty of a family so that in the end the poverty line is born due to source power, production, distribution in certain groups, and resources for the benefit of the masses should not be dominated by certain groups or parties, which describes structural poverty. Josep Stiglist, Nobel Prize, Professor of Economics at Columbia University a book “The Price in Equality” states that the model built gives birth to inequality and poverty. Economic growth, which is symbolized by the increase in GDP, should have an impact on increasing the population of the business sector that produces goods and services absorbing labor; in fact, the opposite is true, and growth (growth) is actually growing the number of unemployed.

Anthropocene is a time that began when human activities began to have a global influence on the Earth’s ecosystems. The term seems to have been used by Soviet scientists since the early 1960s to refer to the Quaternary of the current geological period. Anthropogenic activity leaves (sabbatical) a long enough trace for ecosystem life in the coastal areas.

Anthropogenic patterns create terrified (fear) economic metabolic loss due to loss of resources and biodiversity. Another challenge in the development of coastal areas is the sensitive resources such as Gumuk (sand dunes), wetlands, as well as coastal hazards, which are influenced by natural factors, such as earthquakes, landslides, tornado tsunamis, storms, large waves, tidal, and so on.

3.2 Coastal landscape

Various conditions experienced in coastal areas inhabited by communities with marginal characteristics experience various problems such as structural and cultural poverty, missed problems in development priority plans, and bureaucratic influences in the form of various authorities by each related technical institution often having an impact on programs that are not integrated and overlap. Another obstacle is that the development of commercial areas that convert rural areas into urban areas poses a threat to the socioeconomic structure of coastal communities.

Development aims to convert coastal areas into urban areas by changing the function and landform, changing the coastline with walls, increasing the number of buildings resulting in an increase in the number of populations both occupying the location and migrants, replacing non-functional vegetation, or removing part or all of the coastal endemic vegetation if not taking into account biophysical and ecological will degrade coastal areas, and for indigenous peoples the coast will be displaced and lose its livelihood and ultimately create new poverty and the threat of hunger.

According to J Lee, [10] a spatial pattern is something that indicates the placement or arrangement of objects on the earth’s surface. Any change in spatial patterns will illustrate the spatial processes indicated by environmental or cultural factors.

The intensity of spatial planning development and regional development will pose a serious threat to three aspects, namely: economic, social and environmental in the form of ecological problems such as abrasion, sedimentation processes, waste which causes marine pollution and biodata will be disturbed so that it can result in endangered species existence.

Socially, regional development is a long-term problem due to discrepancy between rural communities and urban communities that are formed, Development in all sectors in coastal areas has contributed a lot to marginalizing local communities whose activities are generally traditional fishermen and leaving aside the sustainability of environmental ecosystems and natural habitats, because the length of the coastline signifies the length of the chain of socioeconomic life of the people.

3.3 Spatial problems and anticipatory strategies

Anticipating various threats of change, it is important to have a coordination of planning by various parties to obtain broad insights and perspectives on the future, so that the distribution of management to one party and the development process continue to pay attention to various things so that coastal landscapes realize sustainable and developing development patterns. This case is specifically for aggressive development by parties, especially private sector (developers) who obtain privilege from the Government to carry out the development of one area or preservation term. Deregulation is exploited by business groups raised by state protection, and they are getting bigger and able to compete globally, which then can dominate the liberalization period.

4. Rural business resilience

Following the coronavirus pandemic hitting globally, everyone hoped that 2022 will be lived more calmly. However, the Russian invasion of Ukraine in February certainly caused a wave of shock and distress around the world³.

For the medium-term development plan of the Tangerang Regency Government as a reference for the implementation of development, there is an existing program called “Gerbang Mapan”‘or the coastal community development movement to carry out the arrangement of coastal areas with infrastructure development such as sanitation but also an economic movement with a “Blue Economic” strategy, the goal is to have an impact on the community, in line with the Central Government’s program that regions must optimize. Its potential is followed by mangrove conservation which is expected to improve water quality in addition to being a tourist destination area. The coastal community development model is being carried out by the Tangerang Regency government for projection 5 of 2019–2023 through an Integrated Coastal Management (ICM) approach within the framework of PEMSEA (Partnerships in Environmental Management for the Seas of East Asia) as a form of partnership in environmental management for East Asian seas. The ICM framework serves as a guideline for central and local governments in initiatives for sustainable development programs. Key areas covered in the governance component of the framework include Policy Strategies and Action Plans, Institutional Arrangements, Legislation, Information and Public Awareness, and Financing Mechanisms and Capacity Development.

Indonesia as a country through the representation of the Tangerang Regency, in the International Partnership forum that cares about environmental and marine management, carries out policies in the economic sector through the concept of “blue economy resilience.” The concept of the marine economy (blue economy) is something that will encourage economic growth through the maintenance of marine ecosystems as a fundamental efforts as a source of survival for coastal communities, in a philosophical perspective, human beings created by God are subsidized in the form of sovereignty to prosper the environment. By the science and technology, humans are equipped with the knowledge to always check panels or every other part so that the balance is not polarized.

The following is statistical data that describes the marine and fisheries potential of Tangerang Regency based on its type in the period 2019–2021 (Figures 3 and 4).

Figure 3.

Production of fish by kind of fishery activity in Tangerang District.

Figure 4.

Value of fish by kind of fishery activity in Tangerang District.

Local Economic Development is the process by which local governments and community organizations are involved to encourage, stimulate, and maintain business activities to create jobs [12].

SMEs are the most important pillar in the Indonesian economy, which are strengthened by data from the Ministry of Cooperatives and SMEs, and the number of MSMEs currently reaches 64.2 million with a contribution to GDP of 61.07% or worth 8573.89 trillion rupiah, contributing to the Indonesian economy for the ability to absorb 97% of the total existing workforce and can collect up to 60.4% of the total investment, but this is inseparable from the challenges that exist. The issue of access to capital, sales, logistics, and human resources is an antecedent from time to time such as not being able to get out of dogma and must be defeated.

4.1 Redesign

Variants of problems must be handled through logical steps to solve a problem in terminology as an Algorithm, can no longer be solved with classical patterns, currently the world is faced with very fast changes accompanied by speed, humans must be able to adapt by making transformations, including patterns business carried out by the bottom line of society to be able to take advantage of and enter into a digital ecosystem that aims to encourage the use of digitalization, considering that the world is currently borderless and is in a digital transformation phase.

Digital transformation requires the speed of adaptation of business actors in coastal areas in facing increasingly bigger challenges with programs that are structured to encourage human resource capacity building. , no function is disturbed, blood circulation pumped by the heart radiates to all organs. Economic activity through business processes (production – distribution – consumption) is born through a complete agile process within an institutional framework that promotes a series of collegial-based work practices, which are loaded with the value of awareness to be agile which really needs a change in mindset and behavior that need to be applied in carrying out an activity or work.

The concept of business development in the rural sector in coastal areas with logical steps is actually to give birth to a form of ultra-micro-industry-based business with optimization of the use or utilization of local resources supported by environmentally friendly production technology by prioritizing local knowledge supported by awareness as a fundamental thing, and that what can change life is the best effort, as Islam says “Indeed, God does not change the state of things so that they change the circumstances that exist in themselves.”

The strategy that must be built in the rural sector is to develop the Ultra Micro Business Algorithm business, where the business is built with a sequence of operations that are arranged logically and systematically to solve one problem to produce a certain output and have analytical skills so that the business system includes the availability of modern traditional markets (not eliminating the traditional side) but puts forward the modern side.

The government, especially local governments, must have the courage to carry out a review of the existing planning of coastal areas through spatial planning and environmental protection efforts, including local economic development strategies from various sub-sectors that support community income and contribute to the income obtained by the region, therefore to anticipate the occurrence of problems that not only affect the form and function but must maintain interconnectiveness between land and ocean areas.

Talking about the methodological approach to building a grand design is to organize coastal areas that must pay attention to biophysical or ecological-based, industrial settlement development, tourism and must prepare appropriate community development programs with new strategies due to environmental changes. , because coastal areas in tropical areas such as in Indonesia are ecological and economic assets and store a lot of very high history and culture, but are prone to disturbances both received through natural and man-made changes.

5. Power of community

Knowledge and wisdom grows unbalanced and very selective, not evenly distributed between communities and between nations, so it is important to respond to the crisis by redesigning society for the future.

In his book [13] “Social Sustainability, Past and Future: Undoing Unintended Consequences for the Earth’s Survival,” calls the six points of “odd” perceptions that shape sustainability. Its complexity is also the cause of single sciences failing to understand the phenomenon, among others, due to “the curse of dimensionality.” The realization that science is only a perception of facts and not fact itself requires a reinterpretation of what is called right or wrong. Transdisciplinarity can be the path to that reinterpretation. But transdisciplinary developments have also faltered, for example, by the question of “intellectual fusion.” The ability to think plurally and the result of a comfortable institutional grip on the view of one’s own knowledge. Symbiotic is the process of giving and accepting each other to the existence of ideas, beliefs, or other physical cultures that occur between two or more societies to encourage the occurrence of convergence as one of the conditions of the concentrated meeting point.

Communities are not only being fed with various forms of loans by financial institutions, because the main thing is the Government’s inclusion program in the form of infrastructure provision including the provision of equipment with various training supports, loans are the last option, it can also be through the development of information systems, developing management and supervision plans, strengthening institutions with disaster management programs, coastal area plans and management, and education, including adaptation to climate change.

The main problems faced by coastal communities are poverty levels, damage to coastal resources, low independence of village social organizations, as well as lack of infrastructure and environmental health in settlements, The COVID-19 pandemic has increased the unemployment rate, which ultimately increases pressure on natural resources (extractive activities) and anthropogenic pressures and thus exacerbates the impacts of climate change.

Government policy greatly affects the balance of implementation of regional development programs that must pay attention to social, economic, and environmental aspects in the aim of minimizing negative impacts so that the landscape planning approach, how development strategies and outputs and outcomes with alternative scenarios are fundamental in the development and utilization of coastal areas that contribute to rural communities, especially fishing communities, availability of fishing areas, recreational and tourist areas including infrastructure including fishing ports, fish auction sites which is a place for fisherman sell their catch from the sea.

5.1 Integrated coastal management

There are principles in the management of coastal and marine areas. As stipulated in Agenda 21 Chapter 17 Program (a), the Government of Indonesia in 1995 has prepared Agenda 21-Indonesia, and in Chapter 18 on Integrated Management of Coastal and Marine Areas. It is stated that the development orientation and management of coastal and marine areas is a development priority, especially those that include the aspects of integration and institutional authority, so it is hoped that the resources in this region can become superior products in the development of the Indonesian nation in the next century, including conservation areas with 3 (three) categories, namely Parks, Sanctuaries, and Maritime Conservation Areas. The designation of marine conservation areas with the category of parks is carried out for the purpose of protecting, preserving, and utilizing biodiversity or fish resources⁴.

Managed conservation areas will be able to have an impact on the economy of coastal areas through fisheries management, tourism, protection of nutfah plasma parts of plants, animals, and microorganisms that have the function and ability to pass on properties, in addition to being useful for assembling superior varieties of a species so that they can be susceptible to disease or have high productivity and will be able to pass on the quality of traits from generation to generation.

The other sides is an important things to do is should focus on coastal areas with the availability of waste management including landfills, pollution strategies that will occur in coastal areas, avoiding the construction of buildings that are not too close to the coastal.

5.2 Social networks analysis

Strategy in facing the challenges of economic development for coastal communities is important for academia to exist as a problem solver in solving government-owned problems and to approach with social network techniques, coastal area planning involves multi-stakeholders through a community-based approach strategy, the important role of multi-stakeholders in the preparation of coastal area management plans with various issues and challenges and affected by the dark period for the past two years of the pandemic of Covid 19.

The issue of coastal management through a triangle approach (three lines of defense) by social networks analysis is related to the role of a special envoy in managing a thriving and sustainable ecosystem.

Kazienko et al., [14] said that a social network is a description of connectivity between individuals (actors) and groups, which is illustrated by a point connected to links (ties) (Figure 5).

Figure 5.

Social network scheme.

Based on the SNA model, which is often used in measuring a relationship and describing some information, it is defined as a description of the interactions and relationships that always occurs between one another in an organization or work environment and company, the form of this interaction can vary, according to the concept and results to be achieved.

Academia exists in society as a problem solver, namely providing consulting services to the object of the problems encountered, academics act as a driver and become a facilitator who connects various actors in searching for issues and phenomena and returns by providing solutions in terms of answering problems, especially in coastal areas. It is a paradox if there is a diction that says that there is poverty in areas of material surplus of natural resources or biodiversity, but the fact that cannot be avoided is structural and cultural poverty. Nurmalasari (2013) in [15] defines community-based management can be carried out in two ways, namely structural and subjective approaches, and institutional approaches through the human aspects.

6. Rural economic metabolism

Thomas Norrby⁵ of the Swedish Agricultural University and an expert in rural entrepreneurship stated that the macro-perspective states that the economy is an ecosystem in the sense that some businesses die, but in other business sectors it actually makes a profit, meaning that we must always be creative and keep moving to find entrepreneurial solutions to address problems, many players in the tourism sector are trying to fund efforts to diversify their businesses to generate income. At the same time, the pandemic resulted in many people becoming victims of layoffs, so they returned to their villages as their true homeland and tried to survive to continue to struggle for life, while some rural entrepreneurs tried to find strategies to survive. survive such cooperative efforts between tourism and agriculture sectors.

According to Arsyad [17], [18]. Professor of the Faculty of Economics and Business of Gajah Mada University in his book Local-based rural development strategies, rural economic development is a process by which village governments and communities manage existing resources and form a pattern of partnership between village governments and the private sector to create new jobs and stimulate the development of economic activities.

7. Ultra-micro business strategy

Households in developing economies are embedded in dynamic and complex contexts that are affected by pressures such as climate change, population growth, urbanization, and resource constraints [19]. In one challenging condition for rural businesses to grow in coastal areas, it becomes critical to find when it is time to stop, take a step back, and see the business properly, and it is important that operational reviews are present.

Mapping the complexity of the problems of coastal communities so that the root causes of the problems can be identified, what problems and what needs to be resolved immediately, and how to overcome these problems, considering that coastal ecosystems are important areas that provide goods and other ecosystem services for local communities, as a source of livelihood.

Fisheries potentials that can be converted into sustainable and developing businesses are fish, crab and shrimp farming, and tourism and tourism areas, and the potential for marine biotechnology is large opportunities to develop industrial material sources of food raw materials, natural feed ingredients, and other sources of raw materials that have not been explored, such as the large amount of biodiversity; for example, there are 16 types of mangrove species (Rhizophora apiculata), which can be used as conservation land to absorb all the dirt that comes from human waste and ships sailing in the sea. The benefit of mangrove forests for life is that they will absorb all types of harmful metals and make water quality cleaner.

Another upstream problem that must be completed by the local government is the fish auction place. Fish Auction Place or namely Tempat Pelelangan Ikan (TPI) is a market where transactions for the sale of fish or seafood occur, whether by auction or not, which is usually located within the fish auction place Fish Auction sites or namely Tempat Pelelangan Ikan (TPI).

Integrated business opportunities (restaurants) support technology to maintain the quality of marine products to be processed into finished materials, not to mention the problem of clean water in some areas, and it is important to make improvements considering this is related to the quality of the products. Traditional food explores regional and international markets.

8. Conclusions

Adopt and technology development is a key ingredient, collaboration between local governments and relevant ministries in intervening in appropriate and environmentally friendly technology knowledge. The pandemic COVID-19 is a tangible manifestation that the village is a friendly shelter for residents.

The establishment of an ultra-micro-business at the village level will increase regional domestic products, meet regional consumption, encourage exports, and reduce dependence on imports, and questions are then difficult to accept with common sense that with a large amount of biodiversity; for example, there are 16 types of mangrove species (R. apiculata) which is a strategy to ensure water quality is also a tourist attraction, and marine and fisheries sector with a diversity of resources as raw materials are processed into finished goods to ensure the lives of coastal communities (Figure 6).

Figure 6.

Economic metabolism framework.

The establishment of ultra-micro-businesses at the coastal village level in addition to increasing livelihoods will also increase food security, and the products and services produced will create demand and capital turnover in the regional market, and encourage the export of derivative products made from local raw materials with the concept of local creatives that will increase Gross Regional Domestic Product (PDRB) and ultimately reduce dependence on imports for everyday goods (consumables) and give birth to good staples in emerging markets.

Indonesia is a maritime country with an area around 270 million of which 45 percent live in rural and coastal areas, also has sea within its territory, namely Banda, Java, Arafuru and we have four main straits of the seven major straits namely the Lombok, Makassar, Sunda, Malacca, Lombok, Karimata Straits which are the social capital of coastal communities.

The village must provide confidence and certainty for the younger generation (Youth entrepreneurship) to return to their villages, carry out business activities with the provision of academic abilities that will help the community with innovations that they can access, and ultimately become a momentum to become a market leader with automation in the manufacturing maritime sector to become a maritime axis country.

The environment and natural resources are managed economically, but still prioritizing “care for the environment,” with modern science not only with modern technology, but a lot of local knowledge that is a reference for reborn.

In fact, the problems faced by archipelagic countries such as Indonesia, have thousands of islands with vast seascapes and inhabited by many coastal communities, it is important to be supported by the political economy to produce a policy with a very strong commitment and a conflict between policies and implementation, because no matter how good the development strategy is through the economic policies of one country, it will be useless if it is not supported by political policies that favor the people, in accordance with its philosophy that the state is formed for the welfare of its people.

It is hoped that this chapter will be continued with a study that encourages in the issues of political and economic policies that urban and rural communities can coexist by ensuring environmental and ecosystem sustainability and thriving in coastal areas.