Bela Beli Kulon Progo: The Role of Regent Leaders hip in Poverty Reduction at Kulon Progo District

One of the reasons for the State’s presence in society is due to market’s failure in providing
its citizens with bet er welfare. The local economy2
that serves as a source of welfare for most
Indonesian communities is placed under very strenuous conditions when having to confront
capitalist economy. Remarkably diff ering backgrounds and resources create a highly imbalanced
bargaining position. There have been numerous policies in the form of local economic development
programs that have been carried out by Indonesia. However, the reality indicates that as of current
the contribution of local economies in the GDP remains at approximately 50%. The interventions
employed using a global approach, did not consider the specifi cation of issues confronted by local
economies, the State intervention performance metrics were very simple (activities) and there
was a lack of serious evaluation regarding the intervention, which led to it not bearing much
fruitful results. It was the Kulon Progo Regency which developed the concept of empowering
local economy by using a specifi c approach confronted by the local economy. The policy is known
as “Bela Beli Kulon Progo”. This article discusses the process undertaken by the Kulon Progo
Regency in implementing the “Bela Beli Kulon Progo” movement which succeeded in boosting
local economic development performance.