Assessing the Socio-Economic Impact of the Establishment of PT. Bahagia Cigarette Factory

Abstract

The establishment of industrial facilities in rural areas can have profound socio-economic effects on local communities, yet the dynamics of these impacts remain underexplored, particularly within the cigarette industry. This study investigates the social and economic consequences of the establishment of PT. Bahagia Cigarette Factory in Ganding Village, Ganding District, Sumenep Regency. Employing a qualitative research design, data were collected through structured interviews with local residents and direct field observations. The findings reveal several positive outcomes, including expanded employment opportunities, enhanced household income, and stimulation of local economic activities. Simultaneously, the research identifies adverse effects such as increased consumptive behavior, alterations in traditional social values, and heightened economic dependence on a single industrial sector. These findings underscore the dual nature of industrial development in rural contexts, highlighting the need for strategies that maximize benefits while mitigating social and economic vulnerabilities. The study contributes to the literature on community-based development and rural industrialization, offering insights for policymakers, local authorities, and stakeholders in managing industrial growth in ways that promote sustainable socio-economic development. By providing empirical evidence from a rural Indonesian setting, this research extends understanding of how industrial projects influence both livelihoods and social structures, serving as a reference point for future studies on rural industrial impacts