Investigating The Smart Community Empowerment in the Utilization of Micro Hydro Power Plants (PLTMH): Enhancing The Welfare of Rural Community

Master of Economics, Universitas Muhammadiyah Yogyakarta, Indonesia

^* Corresponding author: d.rachmawatie@umy.ac.id

Abstract

The economy of an intelligent society is a concept that describes an economic system in which people have a high understanding of financial management and monetary resources. In the last decade, the idea of community empowerment by utilizing Micro hydropower plants has grown. Factors such as ecological sustainability, preservation of natural resources, and mitigation of negative impacts should be analyzed to assess the success of the project and its long-term effects. A maintained environment will help the well-being of the community, building synergies between environmental sustainability and economic development. It needs to be recognized that challenges may arise in the process of empowering intelligent communities. This study used a mixed-methods approach. The results indicate that the t-statistic is 3.527, beyond 1.96, and the p-value is 0.000, below 0.05; thus, the group’s support for beneficiary empowerment exerts an indirect influence. The influence of group support on participation was indirect, indicated by a t-statistic of 8.082, surpassing 1.96, and a p-value of 0.000, which is below 0.05. The group’s endorsement of rural community development exerts an indirect effect, producing a t-statistic of 5.217, surpassing 1.96, and a p-value of 0.000, which is below 0.05. Moreover, the social capital variable exerts an indirect effect on the advancement of rural communities, demonstrated by a p-value of 0.001, which is less than 0.05, and a t-statistic of 3.360, which is greater than 1.96. This finding suggests that the empowerment of intelligent communities through MHP not only improves economic welfare but also maintains balance with the surrounding environment, resulting in sustainable growth.