Joint Business Group (KUBE) Program Implementation as a Predictor of Community Welfare: The Poverty Reduction Efforts in Indonesia

Abstract

Given the enduring and intricate nature of poverty in various global regions, this study centres on the empowerment of impoverished individuals and the enhancement of community welfare, with a specific focus on rural areas within a developing nation, namely, Indonesia. In this context, we explore the Joint Business Group (KUBE) program, one of several welfare initiatives initiated by the Indonesian government, as a key determinant of community welfare. In addition to examining the direct impact of KUBE program implementation on community welfare, we assess the mediating roles of intellectual talents and social psychological attitudes. Additionally, we empirically evaluate the contingent role of funds management accountability in facilitating the effective implementation of the KUBE program and its subsequent impact on community welfare. Our data collection involved surveying 537 households across 15 distinct villages in Jakarta, Indonesia, with subsequent data analysis using SmartPLS v.4.0. The results underscore the substantial positive influence of a fair and transparent KUBE program implementation on the development and refinement of intellectual talents among socially disadvantaged individuals. This, in turn, significantly contributes to community welfare. Furthermore, our findings highlight the transformative potential of the KUBE program in shaping the social-psychological attitudes of individuals for the betterment of society. Hence, this study, through empirical analysis of primary data collected from study respondents, constitutes a valuable addition to the existing body of literature pertaining to the efficacy of the KUBE program in alleviating poverty.