DIGITAL VILLAGE (SMART VILLAGE) DEVELOPMENT STRATEGY TO REDUCE RURAL-URBAN ECONOMIC INEQUALITY: A SWOT-AHP ANALYSIS IN BLITAR VILLAGE, MADUKARA SUBDISTRICT, BANJARNEGARA

Abstract

The rural-urban economic disparity highlights the need for a Smart Village transformation led by local institutions. This study aims to formulate a development strategy for the Blitar Village Business Partner (BUMDes), Banjarnegara Regency, to support the Smart Village concept in its layer chicken business unit. It employs a mixed-methods approach using SWOT analysis and the Analytic Hierarchy Process (AHP). The results of the Internal Factor Evaluation (IFE) analysis show that the BUMDes’ dominant strengths lie in capital support and village regulations (score of 3.99). However, these are constrained by weaknesses in human resources and marketing (score of 1.47). The External Factor Evaluation (EFE) analysis noted a very high market opportunity (score of 4.01) alongside moderate threats from feed price fluctuations and livestock diseases (score of 1.98). The AHP calculation yielded three high-priority strategic pillars (range 25.5%–25.8%): Strengths-Threats (ST), Weaknesses-Opportunities (WO), and Strengths-Opportunities (SO). The study concluded that strategy execution must be carried out simultaneously through capital strengthening, mitigation of feed and disease risks, and acceleration of digital marketing to reduce economic inequality.