Human Capital, Social Capital, and the Sustainability of Rural Communities: An Empirical Examination in Rural Indonesia

Rural communities in Indonesia are experiencing rapid socio-economic transitions driven by agricultural modernization, tourism expansion, and shifting livelihood structures. Understanding how internal community assets, particularly human capital and social capital, shape these transitions is essential for advancing sustainable development. This study investigates the roles of human and social capital in enhancing rural sustainability and community well-being, framing the analysis within the United Nations Sustainable Development Goals (SDGs). Using a mixed-methods approach that integrates Partial Least Squares Structural Equation Modeling (PLS-SEM; n = 214) with qualitative field insights, the study compares two contrasting village contexts: an agritourism community (Sidomulyo Village) and an organic-farming community (Lombok Kulon Village). Findings indicate that human and social capital significantly shape rural sustainability through distinct, context-dependent development pathways. In agritourism village settings, social capital (R² = 0.46 (Lombok Kulon) and 0.29 (Sidomulyo))—manifested through trust, shared norms, and cooperative networks—serves as the primary driver supporting SDG 8 (Decent Work and Economic Growth) and SDG 11 (Sustainable Cities and Communities) by fostering collective governance and diversified local economies. In contrast, the organic-farming community relies more strongly on human capital—agricultural knowledge, skills, and adaptive capacities, which reinforces food security and ecological resilience in alignment with SDG 2 (Zero Hunger) and SDG 12 (Responsible Consumption and Production). The model explains 57% of community-welfare variance in Lombok Kulon and 64% in Sidomulyo. The study contributes theoretically by linking capital formation to rural transformation pathways and provides policy-relevant insights for community empowerment, sustainable rural development.