Ni Wayan Rainy Priadarsini.
I Made Anom Wiranata.
Ni Nyoman Clara Listya Dewi, and a Intan Prameswari Hexagon Model for Local Economic Development: Unlocking Green Job Opportunities in BaliAos UMKM Sector as a Model for the Global South Ni Wayan Rainy Priadarsini S International Relations.
Faculty of Social and Political Science.
Udayana University.
Bali rainypriadarsini@unud.
I Made Anom Wiranata International Relations.
Faculty of Social and Political Science.
Udayana University.
Bali anom_wiranata@unud.
Ni Nyoman Clara Listya Dewi International Relations.
Faculty of Social and Political Science.
Udayana University.
Bali claralistya@unud.
a Intan Parameswari International Relations.
Faculty of Social and Political Science.
Udayana University.
Bali parameswari@unud.
Abstrak Usaha Mikro.
Kecil, dan Menengah (UMKM) di Bali semakin mengadopsi model bisnis hijau untuk menjaga keberlanjutan usaha lokal sejalan dengan Tujuan Pembangunan Berkelanjutan (SDG.
Dengan peran pentingnya dalam perekonomian daerah.
UMKM Bali berpotensi mengembangkan praktik berkelanjutan sekaligus menciptakan lapangan kerja hijau yang Penelitian ini menganalisis penerapan Model Heksagon untuk Pengembangan Ekonomi Lokal (PEL) yang dipadukan dengan teori big push guna membuka peluang tersebut.
Usaha Mikro.
Kecil, dan Menengah (UMKM) di Bali semakin mengadopsi model bisnis hijau untuk menjaga keberlanjutan usaha lokal sejalan dengan Tujuan Pembangunan Berkelanjutan (SDG.
Dengan peran pentingnya dalam perekonomian daerah.
UMKM Bali berpotensi mengembangkan praktik berkelanjutan sekaligus menciptakan lapangan kerja hijau yang Penelitian ini menganalisis penerapan Model Heksagon untuk Pengembangan Ekonomi Lokal (PEL) yang dipadukan dengan teori big push guna membuka peluang tersebut.
Model Heksagon memberikan kerangka terstruktur bagi pembuat kebijakan dan praktisi untuk AEGIS Vol.
9 No.
December 2025 Hexagon Model for Local Economic Development: Unlocking Green Job Opportunities in BaliAos UMKM Sector as a Model for the Global South membangun sinergi, memperluas perspektif, dan merumuskan strategi konkret penciptaan lapangan kerja berkelanjutan.
Dengan menghubungkan aktor hulu dan hilir dalam ekosistem bisnis lokal, sektor UMKM hijau di Bali tampil sebagai model replikasi bagi negara-negara Global South, menciptakan peluang kerja bagi kelompok usia produktif maupun kelompok rentan, termasuk penyandang disabilitas.
Kata Kunci: UMKM hijau.
model hexagon.
penciptaan lapangan kerja.
ekonomi lokal Abstract BaliAos Micro.
Small, and Medium Enterprises (MSME.
are increasingly adopting green business models to sustain local enterprises in line with the Sustainable Development Goals (SDG.
With their significant role in the regional economy.
BaliAos MSMEs have the potential to advance sustainable practices while creating inclusive green jobs.
This study analyzes the application of the Hexagon Model for Local Economic Development (LED), combined with the big push theory, to unlock these opportunities.
Using qualitative methods through interviews and literature review, the findings highlight the need to strengthen ecosystems and resources to enable MSMEs to generate effective, productive, and inclusive jobs.
Despite strategic potential, green MSMEs face challenges such as low awareness of eco-friendly practices, limited financing, and weak cross-sector collaboration.
The Hexagon Model offers a structured framework for policymakers and practitioners to build synergy, broaden perspectives, and formulate concrete strategies for sustainable job creation.
By linking upstream and downstream actors in local business ecosystems.
BaliAos green MSME sector emerges as a replicable model for the Global South, generating opportunities for both the productive-age population and marginalized groups, including persons with disabilities.
Keywords: Green MSMEs.
Hexagon model.
Job creation.
local economic development AEGIS Vol.
9 No.
December 2025 Ni Wayan Rainy Priadarsini.
I Made Anom Wiranata.
Ni Nyoman Clara Listya Dewi, and a Intan Prameswari Introduction In the aftermath of the COVID-19 pandemic, the vulnerabilities of economic systems in the Global South became increasingly visible.
Communities dependent on a single dominant sector, whether tourism, agriculture, or extractive industries experienced severe disruptions, leading to sudden unemployment, shrinking markets, and widening social inequalities.
Bali, globally recognized as a tourism hub, exemplifies this fragility.
When global travel halted, the provinceAos economic engine stalled, revealing its overreliance on tourism and the urgent need for diversification.
According to the Bali Provincial Statistics Agency (BPS), as of February 2023, approximately 110.
72 thousand individuals, representing 3.
13% of the working-age population, were adversely affected by COVID-19.
This figure includes 4.
73 thousand people rendered unemployed, 7.
thousand classified as not in the labor force, and 98.
26 thousand employed individuals who experienced reduced working hours due to the pandemic.
This crisis, however, also opened an opportunity for transformation.
Rather than restoring the pre-pandemic status quo, local actors began exploring greener, more inclusive economic pathways.
A central driver of this shift is the emergence of green Micro.
Small, and Medium Enterprises (MSME.
, a local businesses that integrate sustainability principles into their operations.
These enterprises generate employment, embed environmentally responsible practices into the economic structure, and contribute to the global agenda of the Sustainable Development Goals (SDG.
, particularly Goal 8 on decent work and Goal 15 on ecosystem preservation.
Theoretically, this study is grounded in the framework of Local Economic Development (LED), which emphasizes the role of local actors and institutions in fostering place-based resilience and inclusive growth.
Within this framework, the Hexagon Model for LED which integrates dimensions such as governance, human capital, social capital, innovation, infrastructure, and environmental sustainability provides an analytical lens to assess how local initiatives can create synergies for sustainable development.
Additionally, the Big Push theory (Rosenstein-Rodan, 1.
offers a macroeconomic perspective on how coordinated investments in multiple sectors can stimulate structural transformation.
Combining these approaches allows this study to explore how BaliAos green MSME ecosystem can catalyze a localized yet globally relevant model of inclusive economic AEGIS Vol.
9 No.
December 2025 Hexagon Model for Local Economic Development: Unlocking Green Job Opportunities in BaliAos UMKM Sector as a Model for the Global South Methodologically, this research adopts a qualitative case study design, drawing on both secondary data .
overnment reports, policy documents, and statistical publication.
and primary data from semi-structured interviews with MSME owners, local government officials, and civil society actors between January and May 2024.
Data were analyzed thematically using the six dimensions of the Hexagon Model to identify enabling and constraining factors for sustainable local economic development.
The relevance of BaliAos case extends to the discipline of International Relations, as it illustrates how local strategies intersect with global governance frameworks, climate diplomacy, and development In a period when international policy discourses emphasize inclusive green recovery.
BaliAos experience offers lessons for other regions in the Global South seeking to balance economic growth, social equity, and environmental protection.
This manuscript is structured as follows: the next section reviews literature on sustainable development.
MSMEs, and the Hexagon Model.
followed by the research methodology, the presentation and discussion of findings, and the conclusion outlining key policy implications.
Ultimately, this study aims to demonstrate that applying the Hexagon Model to green MSME development can advance both local resilience and global sustainability objectives.
Field Findings on Green MSMEs.
Community Hubs, and Inclusive Employment The author conducted several interviews with various sources relevant to the topic of this research, including academics, the Jendranath community.
Tarunira Green UMKM.
HWDI Bali Province, and the Bali Provincial Cooperative and UMKM Office.
Interviews were conducted in several different places, considering the free time of each source located in various regencies in Bali.
Interviews with sources were conducted to explore data on:
emerging problems, regulations, and challenges in expanding new job opportunities, strategies used by green UMKM in creating new job opportunities, sustainable use and maximization of resources, potential collaboration between various stakeholders through the hexagon model approach in PEL.
The industrial sector run by MSMEs has strategic production patterns to maintain various essential components that support the running of the business sector.
The author interviewed with MSME Tarunira Organik, one of the MSME businesses in Bali that applies the principle of sustainability.
Green MSMEs can be defined as a local business base that focuses on financial profit but adheres to the principle of environmental AEGIS Vol.
9 No.
December 2025 Ni Wayan Rainy Priadarsini.
I Made Anom Wiranata.
Ni Nyoman Clara Listya Dewi, and a Intan Prameswari So, green MSME actors prioritize aspects of environmental sustainability in carrying out their business practices.
Tarunira, which was founded in 2020, continues to strive to run the business to empower the community in Tianyar Village.
Karangasem.
Bali.
Tarunira prioritizes sustainable agriculture by processing lontar trees into organic lontar sugar.
This business aligns with the second SDGS goal: ending hunger, achieving food security, improving nutrition, and encouraging sustainable agriculture.
Initially, this business started out of concern about the less-than-optimal management and empowerment of lontar trees spread over almost 2000 hectares in Karangasem Regency.
The problem lies in access to innovation, management, and market access to palm tree products that residyet to need to be optimized.
So Tarunira sees this opportunity and maximizes the potential of palm trees as local and export commodities.
In response to these problems, in addition to empowering palm trees and their potential, another solution sought by Tarunira is an effort to bridge existing natural and human resources that are considered very productive.
This also emphasizes the relationship between human work and natural productivity.
Productivity is a capacity not only attributed to human beings but also to nature's productiveness.
Based on the definition presented above, work relates then to human .
productivity as a mediator between nature and desired outcomes.
Thus, work cannot be merely understood as paid It encompasses all human activities that reproduce life by satisfying fundamental needs (Aigner et al.
, 2.
Based on this argument.
Tarunira can show that there is an opportunity to create jobs that are interconnected with the principle of preserving nature.
Tarunira deliberately invites mothers around the village, farmers, youth, and the village community to work with Tarunira and empower themselves.
Mothers are invited to become potential processors of lontar palm trees into organic lontar sugar.
young people play a role in types of work such as marketing, administration, and marketing, while farmers become distributors of the results of processing the lontar palm trees.
Interestingly.
Tarunira has a business principle of Environmental.
Social, and Government (ESG).
So, this ESG basis is the basic principle Tarunira applies.
From the environmental side.
Tarunira seeks ways to care for lontar trees so that they are optimally utilized to support the preservation of nature and not damage the environment.
From the social side.
Tarunira involves the surrounding community in the production process to produce new jobs.
Finally, the principle of governance refers to corporate governance that is empowering and sustainable.
The MSME community can be a place to share knowledge.
AEGIS Vol.
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December 2025 Hexagon Model for Local Economic Development: Unlocking Green Job Opportunities in BaliAos UMKM Sector as a Model for the Global South experience, and support that allows MSMEs to grow and face business challenges better.
This is the principle of Jendranath, which is one of the most active community hubs in Bali.
This community is a place to gather several NGOs, farmers, and local MSME actors who support each other in empowering local business actors and indigenous communities.
Jendranath, as a community, aims to promote and market indigenous and local community products in Bali and Eastern Indonesia.
In addition to making the products known to the local community, they can also be known in the international market.
Jendranath is a hub introducing products produced by indigenous communities and local farmers that have yet to be known to the public.
Along the way.
Jendranath also helped Tarunira to market its organic palm sugar products to local and international markets.
In addition, other products, such as chocolate from Jembrana, empower women's cooperatives in the area.
Jendranath calls this an in-and-out system.
In order to maintain its commitment.
Jendranath's principle is fair trade.
Fairtrade itself is defined as an international movement that tries to provide guarantees that producers in poor countries receive fair contracts .
air deal.
that include fair prices for their products, long-term purchasing contracts, support for developing knowledge and skills, and increased productivity (Hadiwinata et al.
2004: .
As a community hub.
Jendranath is also working to empower and optimize human resources from farmers, indigenous communities, and MSMEs.
They often gather to empower each other and expand their networks.
Expanding networks for MSMEs can create new jobs because wider business networks bring various opportunities to encourage business growth.
By expanding networks.
MSMEs can reach larger markets locally, nationally and internationally.
When access to the market increases, demand for products or services increases, so MSMEs need to recruit more workers to meet more excellent production and service needs.
However, this reasonable effort should also prioritize the principle of inclusivity for various disabilities.
It is a concern of HWDI Bali that there needs to be serious attention to the existence of people with disabilities, especially women, who also have the potential to become workers in the production sector.
Unfortunately, there is still not much attention to this, which causes women with disabilities to be unable to optimize their abilities, especially for those who have small businesses.
Therefore.
HWDI pays serious attention to the government's efforts to help women with disabilities who have businesses to access capital and have good marketing skills more easily.
So that the market will more readily absorb their products and indirectly, they are also better In addition.
HWDI strives to provide its members with more sustainable jobs in the MSME sector.
Through green MSMEs.
HWDI hopes that women with disabilities AEGIS Vol.
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December 2025 Ni Wayan Rainy Priadarsini.
I Made Anom Wiranata.
Ni Nyoman Clara Listya Dewi, and a Intan Prameswari will also be allowed to become productive workers.
It was conveyed that HWDI had received support from the Ministry of Manpower to become a ULD (Disability Service Uni.
for the Ministry of Manpower.
They also often receive assistance with clean water from other large organizations.
HWDI also believes that its members can be empowered, but unfortunately, that opportunity does not yet exist.
These challenges can be understood by the Bali Provincial Cooperative and UMKM Office, which oversees MSMEs throughout BaliAiin an interview with the author, the Cooperative and MSMEs Office attempted to provide a MSMEs empowerment program by forming a legal forum supporting the creation of a Business Identification Number (NIB).
The goal is for MSMEs to be correctly recorded legally, and they will find it easier to access capital at local and national banks.
The government also routinely holds MSMEs empowerment activities, including the Digital Entrepreneurship Academy (DEA) for 74 Bali MSMEs.
Modern Cooperative Training, and Business Plan and Business Negotiation Training.
The government wants Bali MSMEs to excel so that they can open up new job opportunities for the community.
This is important because UMKM has a vital role in developing the local economy because they are the main drivers in creating jobs, empowering communities, and driving economic growth at the regional level.
The Role of Green MSMEs in Encouraging Sustainable Job Creation Green MSMEs are business strategies that aim to create sustainable businesses by considering environmental aspects as an essential value.
The application of this concept is to encourage business units to pay attention to the environmental impacts arising from business operations from upstream, namely the production process to downstream in the distribution process, and the involvement of community elements in creating jobs.
Green MSMEs strive to contribute to climate, environmental, and biodiversity protection through their products, services, and business practices.
Based on this definition, the business model focuses on profit and the impacts generated by business activities on the environment and society.
Green MSMEs have an essential role in encouraging the creation of sustainable jobs, one of which is by implementing environmentally friendly business Interrelated sectors will create new jobs that have yet to be commonly carried out, such as processing and recycling waste production results.
In Bali.
Tarunira Organic is one of the MSMEs that cares about increasing environmental awareness and skills of local workers through training and education on the importance of sustainable practices by involving village youth and mothers in the areas where the business operates.
AEGIS Vol.
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December 2025 Hexagon Model for Local Economic Development: Unlocking Green Job Opportunities in BaliAos UMKM Sector as a Model for the Global South Green MSMEs (Micro.
Small, and Medium Enterprise.
play a pivotal role in driving sustainable job creation, particularly in regions seeking to balance economic growth with environmental stewardship.
In Bali, the integration of green principles into the MSME sectorAiranging from eco-friendly handicrafts and sustainable tourism services to renewable energy solutionsAidemonstrates how local enterprises can generate employment while preserving natural resources.
By embedding environmental considerations into production, distribution, and waste management, these businesses not only reduce ecological footprints but also create new market niches that demand specialized green skills.
This positions green MSMEs as a strategic lever for Local Economic Development (LED) under the Hexagon Model, which emphasizes the interconnectedness of economic, environmental, social, cultural, institutional, and technological dimensions in fostering inclusive and resilient growth.
Within this framework.
BaliAos green MSME sector serves as a laboratory for innovation and cross-sectoral collaboration.
Leveraging the Hexagon Model allows stakeholdersAifrom local governments and business associations to academia and community groupsAito align efforts in unlocking green job opportunities.
For instance, policy support can incentivize eco-certification, training programs can enhance green entrepreneurship skills, and digital platforms can expand market reach.
The result is a circular ecosystem in which sustainable job creation is not an isolated outcome but part of a broader transformation toward low-carbon, culturally rooted, and socially inclusive This approach holds particular relevance for the Global South, where the dual imperatives of poverty alleviation and environmental conservation demand models that are both context-sensitive and scalable.
By adopting BaliAos green MSME-led LED strategy, other regions can replicate a pathway that simultaneously boosts livelihoods, safeguards cultural heritage, and addresses global climate goals.
The Hexagon of Local Economic Development (LED): Bali's Green MSMEs From the data collection process that has been carried out, several green MSMEs in the province of Bali have shown their commitment to developing sustainable and meaningful businesses.
Tarunira Organic is one of the green MSMEs in Bali that has run its business by prioritizing the sustainability aspect of community empowerment.
developing the principle of sustainability for the MSME sector, a space is also needed to gather various types of MSMEs as a community hub.
Jendranath is one of the community hubs for MSMEs based in Bali.
First Triangle: Target Groups AEGIS Vol.
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December 2025 Ni Wayan Rainy Priadarsini.
I Made Anom Wiranata.
Ni Nyoman Clara Listya Dewi, and a Intan Prameswari Target Groups in this context refer to the main groups targeted by local economic development policies or strategies.
These groups can vary greatly depending on the characteristics of a particular area.
Tarunira, as an example of a green MSME in Bali, has implemented this principle by targeting most of the management of palm sugar raw materials to be carried out by housewives in Tianyar Village.
Karangasem.
Bali.
The same community also does the Jendranath thing, which provides opportunities for female MSME entrepreneurs to market their products more massively and sustainably.
As a community hub.
Jendrantah provides a space to empower local female entrepreneurs who still need assistance developing their businesses.
Second Triangle: Locational Factor Geographical proximity to local resources can be one of the factors that can encourage the competitiveness of MSMEs.
Location factors also determine local business development.
Reflecting on what Tarunira has done, the MSME industrial cluster in rural areas can also be a channel for the flow of funds and labor mobility, thus strengthening the relationship between urban centers and rural communities.
This interaction can be seen from producers in rural areas and consumers in urban areas.
This also does not rule out the possibility of interaction for investors usually in urban areas.
3 Third Triangle: Policy Focus and Synergy This element focuses on policies and strategies designed to support MSMEs' growth and sustainably create new jobs.
The government should be able to realize policies that focus on training and developing the skills of the local workforce, which is very important to ensure that workers have the competencies needed by MSMEs.
This includes providing vocational training programs, digital technology training, and relevant technical skills This has been done by the Bali Provincial Cooperatives and MSMEs Office through the Business Plan and Business Negotiation Training programs.
Fourth Triangle: Sustainable Development MSMEs must be able to determine strategies to provide capital and time to invest and develop the skills of their employees so that they have expertise that is based on market For Tarunira, an eco-friendly business model is realized by using raw materials to make palm sugar from sap trees grown organically by local farmers.
Green MSMEs change people's mindsets towards greener and more sustainable thinking and increase demand for green products and services, thereby increasing the multiplier effect in the form of jobs and environmental benefits.
AEGIS Vol.
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December 2025 Hexagon Model for Local Economic Development: Unlocking Green Job Opportunities in BaliAos UMKM Sector as a Model for the Global South Fifth Triangle: Governance Governance means that governance, policies, and coordination between the government and civil society are the keys to achieving economic development.
Local government governance should be able to cover how an inclusive policy framework can be created to support the growth of MSMEs.
Among them are simplifying regulations for MSMEs, administrative service assistance, and providing capital assistance or incentives for MSMEs that have committed to sustainability and can create jobs.
A reasonably rational scheme is implementing a tax incentive policy for green MSMEs that can employ vulnerable groups such as the disabled, mothers, and unemployed youth.
The above issues are the focus of HWDI Bali members who encourage inclusivity towards women with Sixth Triangle: Process Management Process Management refers to the management of processes needed to achieve economic development goals, including job creation in the MSME sector.
In the context of MSMEs.
Process Management is responsible for coordinating and optimizing processes related to local business development, ensuring that resources are used effectively, and encouraging sustainable growth that can later contribute to developing new sustainable job Supporting MSMEs also contributes to creating new job opportunities.
requires process management to describe the local economic business process from upstream to downstream through careful planning.
This means paying attention to material profit schemes and supporting other social processes, such as providing opportunities to improve the skills of workers and the surrounding community.
Therefore, planning and partnerships are needed with all stakeholders, such as local governments, banks/cooperatives, researchers, farmers, business actors, and NGOs, to create synergy in supporting efforts to develop new, more sustainable jobs to support the competitiveness of local businesses and the economy in Bali.
MSMEs such as Tarunira, the Jendrantah, and HWDI communities, as well as the Bali Provincial Cooperative and MSME Office, have demonstrated comprehensive efforts to support more new job opportunities created, especially from MSMEs implementing sustainable principles.
This is an essential step in accelerating efforts to accelerate a region's economy by increasing its human resources.
By applying the big push theory, capital and infrastructure are essential investments that greatly support businesses at the local/micro level.
The implementation of the big push theory will be by the objectives of Local Economic Development (PEL), which refers to the process by which AEGIS Vol.
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December 2025 Ni Wayan Rainy Priadarsini.
I Made Anom Wiranata.
Ni Nyoman Clara Listya Dewi, and a Intan Prameswari local governments/community-based organizations drive and maintain business activities and job opportunities so that this synergy effort is necessary among key stakeholders to support efforts to create new jobs.
Conclusion Through the Hexagon Local Economic Development (LED) Model, the government, private sector, and green MSMEs can take strategic steps to shape a sustainable employment sector in Bali that is inclusive and future-oriented.
This model offers a structured approach, with six interlinked dimensionsAitarget group, location, policy synergy, sustainable development, governance, and process managementAithat together enable the creation of environmentally friendly and socially inclusive jobs.
By prioritizing young people, women/mothers, and people with disabilities, green MSMEs can tap into underutilized human capital while addressing equity in the labor market.
BaliAos unique position as a world tourism hub provides a strong location advantage, not only in urban centers but also through rural MSME clusters that channel capital flows and promote labor mobility.
Government-backed policy synergy, through capacity building, access to finance, and market facilitation, further strengthens MSME resilience and competitiveness.
In turn, the green MSME sector delivers long-term benefits for the economy, society, and environment, ensuring that local growth does not come at the expense of ecological integrity.
Stronger governance and streamlined administrative processes are essential to sustain this momentum, while realistic planning and process management will help scale the impact.
By integrating the Hexagon LED framework into BaliAos green MSME ecosystem, the region can become a model for the Global South, demonstrating how environmental stewardship and economic opportunity can reinforce each other.
This synergy not only preserves BaliAos cultural and natural heritage but also unlocks new, sustainable job opportunities that enhance the islandAos competitiveness and inspire replication in similar contexts worldwide.
Acknowledgements The authors would like to express their sincere gratitude to Komang Sukarma from Tarunira.
Jendranath.
Provincial Office of Cooperatives and Micro.
Small, and Medium Enterprises (SME.
of Bali and Prof.
Dr.
Ir.
I Dewa Putu Oka Suardi.
Si.
From Faculty of Agriculture Udayana University, for their insightful guidance and invaluable support throughout this research project.
We also thank research grant scheme at Udayana University for providing the AEGIS Vol.
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December 2025 Hexagon Model for Local Economic Development: Unlocking Green Job Opportunities in BaliAos UMKM Sector as a Model for the Global South financial resources that made this study possible.
We are grateful to all team for their helpful feedback on earlier drafts and for their assistance with the experimental setup.
References