Study of Business Advantages and Financial Management Models in the Anggur Merah Self-Reliant Village Program (Program Desa Mandiri Anggur Merah) in North Central Timor Regency, East Nusa Tenggara

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Kupang– Anggur Merah Self-Reliant Village Program Strengthens Rural Economic Potential in North Central Timor. The research was conducted by Yohanes Made Supadi, Thomas Ola Langoday, and Markus Asa from the Oemathonis Kupang College of Economics. The results of the study were published in the Indonesian Journal of Business Analytics (IJBA) Vol. 6 No. 1 (February 2026).

A study conducted by Yohanes Made Supadi, Thomas Ola Langoday, and Markus Asa from the Oemathonis Kupang College of Economics shows that the Red Grape Independent Village Program in North Central Timor Regency (TTU), East Nusa Tenggara, has great potential in developing the village economy, despite still facing challenges in managing community business finances.

A Regional Policy to Promote Village Economic Independence

The Government of East Nusa Tenggara Province introduced the Anggur Merah Self-Reliant Village Program as a region-specific policy designed to strengthen rural economies through productive community-based enterprises.

The program aims to:

reduce poverty in rural areas
develop productive economic activities within villages
strengthen community capacity and entrepreneurship
optimize the management of revolving funds for micro-enterprises

In North Central Timor Regency (TTU), the program has encouraged the emergence of various micro-enterprises in sectors such as agriculture, livestock, trade, and services. However, the outcomes have varied significantly, with some enterprises growing successfully while others remain stagnant or fail to develop sustainably.

Agriculture and Livestock Identified as Leading Sectors

To identify sectors with the greatest development potential, the researchers applied Location Quotient (LQ) and Shift Share Analysis, two analytical methods commonly used in regional economic studies.

The results indicate that the agricultural sector dominates the economic structure of North Central Timor Regency. Several subsectors demonstrate strong specialization, including:

food crop agriculture
livestock farming
forestry
manufacturing industries
construction
restaurant and recreation services

According to the Location Quotient analysis presented in the study, sectors with LQ values greater than one indicate higher regional specialization compared to reference regions. For example, livestock farming shows an LQ value of around 1.80, while forestry reaches values exceeding 3, indicating a strong comparative advantage in these sectors.

These findings suggest that agriculture-based industries can serve as key drivers of rural economic growth.

Competitive Advantage Analysis Confirms Growth Potential

In addition to sector specialization, the researchers also examined regional competitiveness using Shift Share Analysis.

The analysis shows that several sectors demonstrate competitive advantages, including:

agriculture
manufacturing industries
construction

Among these, the agricultural sector exhibits both specialization and competitive advantage, meaning it not only dominates the regional economy but also grows faster than comparable sectors in other regions.

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This combination of specialization and competitiveness highlights agriculture and livestock as strategic sectors for rural development.

Cluster-Based Development Strategy for Leading Commodities

The study proposes a cluster-based approach to developing leading commodities within the Anggur Merah Self-Reliant Village Program.

For example, livestock development can be organized through a multi-cluster system consisting of:

feed and forage crop production clusters
livestock breeding clusters
infrastructure and input supply clusters
fattening clusters
processing industry clusters for livestock products and organic fertilizer
marketing and partnership clusters
cooperative and microfinance clusters
quality control and breeding centers

This cluster model aims to integrate production, processing, and marketing activities in order to increase product value and improve efficiency.

Similar cluster-based development strategies can also be applied to:

plantation commodities such as coffee, cocoa, vanilla, and cashew nuts
food crop commodities such as maize, legumes, rice, and vegetables
marine and fisheries products

Through this integrated approach, rural economic activities can become more structured and sustainable.

Weak Financial Management Remains a Major Challenge

Despite strong sectoral potential, the study finds that many beneficiary groups have not yet implemented proper financial management practices.

Common challenges include:

lack of systematic financial records
mixing business finances with household finances
limited financial literacy among entrepreneurs
reliance on government funding as the primary source of capital

As a result, many micro-enterprises lack accurate information about production costs, revenues, and profitability.

These issues pose significant risks to the sustainability of rural businesses supported by the program.

Double-Entry Accounting Recommended for Village Enterprises

To improve financial governance, the researchers recommend the adoption of a double-entry accounting model for village business groups.

This system allows entrepreneurs to record financial transactions systematically through tools such as:

cash receipt journals
cash disbursement journals
sales and purchase records
inventory books
financial statements including balance sheets and income statements

A financial recording process illustrated in the study demonstrates how transactions can be tracked from the initial entry stage to the preparation of financial reports.

By implementing this accounting model, village enterprises can improve transparency, accountability, and decision-making capacity.

Conclusion

The study highlights that North Central Timor Regency possesses strong rural economic potential, particularly in agriculture and livestock sectors.

However, the long-term success of rural empowerment programs such as the Anggur Merah Self-Reliant Village Program depends not only on regional economic advantages but also on the ability of communities to manage their enterprises effectively.

Integrating sectoral economic strengths with improved micro-financial management systems is essential for ensuring the sustainability of village-based enterprises and enhancing rural livelihoods.

Author Profiles

Yohanes Made Supadi- School of Economics Oemathonis, Department of Accounting, Kupang, Indonesia
Thomas Ola Langoday- School of Economics Oemathonis, Department of Accounting, Kupang, Indonesia
Markus Asa- School of Economics Oemathonis, Department of Accounting, Kupang, Indonesia

Research Source

Supadi, Y. M., Langoday, T. O., & Asa, M. (2026).Study of Business Advantages and Financial Management Models in the Anggur Merah Self-Reliant Village Program in North Central Timor Regency, East Nusa Tenggara. Indonesian Journal of Business Analytics (IJBA), Vol. 6 No. 1, 107–126.

DOI: https://doi.org/10.55927/ijba.v6i1.16197

URL: https://journal.formosapublisher.org/index.php/ijba