Journal of Engineering and Scientific Research (JESR) – pISSN: 268-0338; eISSN: 268-1695 Journal of Engineering and Scientific Research (JESR) Vol 1, Issue 2, December 2019 84 Social Capital, Entrepreneurship and Rural Development G Prayitno 1* , D S Noor 1 , and A R T Hidayat 1 1 Regional and Urban Planning, Universitas Brawijaya, Indonesia * Email: gunawan_p@ub.ac.id Article Information Received: 6 August 2019 Received in revised form: 28 November 2019 Accepted: 13 December 2019 Volume 1, Issue 2, December 2019 pp. 84 – 88 ©Universitas Lampung http://dx.doi.org/10.23960/jesr.v1i2.29 Abstract Arjowilangun Village is one of the most significant areas of origination in the Malang Regency for Indonesian migrant workers aiming to work overseas. The remittance sent by Indonesian migrant workers can be utilised to support the Designative program, by establishing and developing entrepreneurship. The growth and development of entrepreneurship can be formed from the participation of the village community. Community participation in developing independent entrepreneurship can in turn boost village development. In line with Indonesian culture, rural communities still put forward kinship, trust, mutual cooperation, networking and high social norms (social capital component). This research aims to identify the social capital of retired Indonesian migrant workers and their decision to start business entrepreneurship. The results of the Social Network Analysis (SNA) as identified through three approaches: rate of participation, density and centrality showed that 14 respondents had the potential to be key figures in spreading information to increase community participation in village development. While the results of the correlation analysis indicate that the decision to start a business were influenced by the high value of their social capital, higher social capital can encourage the community to become entrepreneurs, enabling them to have a positive influence on village development. Keywords: migrant worker, social capital, entrepreneurship, rural development I. INTRODUCTION NDONESIA as a developing country are faced with various problems, such as unemployment, poverty, and low-income rate. Reduction of unemployment can be made with an overseas employment placement program [1]. Malang Regency is the second largest regency placing Indonesian migrant worker abroad in East Java after Ponorogo Regency, with the number of overseas migrant worker are 50,617 people. One of the largest villages of origin of overseas Indonesian migrant workers in Malang Regency is Arjowilangun Village, Kalipare District [2]. As one of the areas of origin for Indonesian migrant workers in Malang Regency, Arjowilangun Village has the remittances that can be potentially utilized to support the Desmigrative program. Desmigrative program is the program that establishing and developing entrepreneurship. A study from Sander and Maimbo (2003) found that remittance sent by migrant workers to their home countries in Africa could keep the economy going in the area of origin and capable of advancing the country of origin [3]. In the other research, founded that business development or entrepreneurship and community empowerment are part of the driving force of economic development. Entrepreneurship also plays a role in accelerating equity in economic growth and can increase people's income, and provide employment and business opportunities [4]. Entrepreneurship development in Arjowilangun Village did not go hand in hand with the large number of Indonesian migrant workers. Presently, only 106 retired migrant workers have developed their businesses (entrepreneurs) out of a total of 562 retired Indonesian migrant workers in Arjowilangun Village [5]. In fact, according to other result, there are different kinds of experiences obtained, such as migrant labor skills and experience, can be applied to open a business in the area of origin [6]. I