THE MODEL OF TRADITIONAL INSTITUTIONAL INFLUENCE IN THE DEVELOPMENT OF NAGARI-OWNED ENTERPRISES MANAGEMENT IN AGAM REGENCY, INDONESIA

Abstract

Nagari is an autonomous unit of Minangkabau people in the administration, finance, and other household arrangements in West Sumatra, Indonesia. Nagari has made arrangement of Nagari-owned enterprises which is initiated by the community, elders people in the traditional institution, and the Nagari government to utilize all economic potential, economic institutions, as well as the potential for natural resources, human resources, economic and environmental resources in order to improve the welfare of the people in Nagari. This study observes the development of local driving institution as Nagari-owned enterprises. It aims to develop the local economy and how their roles on arrangement natural and environmental economics resources. Understanding the roles of traditional body in the Nagari is important due to they act as a partly as Non-State Actors (NSA). This study exposed how the progress of Nagari-owned enterprises since the initiation, and how the traditional leaders contributed to this system. We study all 60 of Nagari-owned enterprises in Agam regency, West Sumatra province, Indonesia, which is selected 180 key respondents. The Data obtained were quantified and analyzed using Structural Equation Model (SEM). The results showed that the social capital of traditional institutions has a great roles both directly and in its interaction with other social capital (government support, customs, and community participation) in determining the success of Nagari-owned enterprises in Agam Regency. This shows that traditional institutions have a role in the development policy for the management of environmental economics resources through Nagari-owned enterprises.