Strengthening production capacity through financial management and digital marketing: Evidence from PKK Women’s groups in Matara Village, Merauke

Utilizing local resources is crucial for driving economic development, particularly in rural and coastal areas. The fisheries sector plays a strategic role in supporting food security and improving community welfare by creating added value from fishery products. Various activities, from fisheries cultivation and fishing to fish processing, not only serve as a source of livelihood for the community but also contribute to food security and economic growth, both locally and nationally. Furthermore, this sector holds significant potential for promoting social empowerment, particularly for women and groups with limited access to economic opportunities. Through involvement in fisheries, these groups can increase their income and economic independence.
Empirical evidence shows that the fisheries sector makes a significant contribution to the economic development of communities, particularly in coastal areas (Firdaus & Rahardian, 2018). Nationally, the fisheries sector in Indonesia has been shown to have a positive impact on Gross Domestic Product (GDP). Sari and Khoirudin (2023) explain that fisheries production has a positive and significant impact on Indonesia's GDP. At the regional level, the fisheries sector's contribution varies significantly. Some regions have moderate contributions, whereas others demonstrate a high comparative advantage in this sector. These differences are influenced by natural resource potential, utilization levels, and regional economic structures. This confirms that the role of the fisheries sector is highly contextual and dependent on the characteristics of each region. At the household level, the fisheries sector also makes a significant contribution, particularly in increasing family income. Fishing activities, including those carried out by coastal women, have been shown to significantly contribute to household income, thereby strengthening family economic resilience. Furthermore, the existence of fisheries businesses and industries positively impacts production value and overall economic activity.
In Indonesia, various community empowerment programs have been directed at increasing community capacity to productively manage local resource potential. This policy direction aligns with the mandate of Village Law Number 3 of 2024 (Badan Pemeriksa Keuangan Republik Indonesia, 2024), which emphasizes the importance of community empowerment as an effort to promote village independence and prosperity by utilizing local potential. One community group that plays a strategic role in household economic activities is the Family Welfare Empowerment Group (PKK). This group is often involved in household-based food-processing activities that have the potential to develop into productive businesses, thus contributing to strengthening the family economy while supporting the implementation of community empowerment at the village level (Badan Pemeriksa Keuangan Republik Indonesia, 2024). Furthermore, the development of digital technology has opened new opportunities for microentrepreneurs to expand their product marketing reach through the use of digital platforms and social media. Community capacity building is not limited to production skills but also encompasses aspects of business management and digital marketing.
Several previous studies have shown that processing fishery products into processed food products is an effective strategy for increasing the added value of fishery commodities. Processed products, such as fish nuggets, fish balls, and various other processed products, have been widely developed by communities as a form of fishery product diversification (Jumadil, 2025). Previous research has shown that fishery processing training can improve community skills in producing higher-quality products and increase opportunities for household-based businesses (Zukryandry et al., 2024). A participatory community empowerment approach is also considered effective in increasing community involvement in business development processes.
In addition to production, financial management is a crucial factor in determining the sustainability of micro- and home-based businesses. Several studies have shown that low financial literacy remains a major obstacle for small business owners in developing their businesses (Apriadi et al., 2025). Many microentrepreneurs do not maintain systematic financial records and thus experience difficulties in managing cash flows and evaluating business performance (Manuji et al., 2026). Improving financial management literacy through training in simple financial record-keeping is an important strategy to support the sustainability of micro-enterprises.
Furthermore, advances in information technology have emphasized the importance of digital marketing in the development of small and medium enterprises. Digital marketing allows businesses to promote products more widely at a relatively low cost (Sundari & Lestari, 2022). Social media platforms such as Instagram, Facebook, and WhatsApp have been widely used by micro-businesses for product promotion (Herlina & Simabur, 2025). Several studies have shown that utilizing digital marketing can increase product visibility, expand consumer networks, and increase the competitiveness of small businesses (Lubis et al., 2026; Sifwah et al., 2024). In this regard, integrating digital marketing skills into community empowerment programs is becoming increasingly important in supporting the development of community-based businesses.
Although various studies have demonstrated the importance of improving production skills, financial management, and digital marketing in micro-enterprise development, most community empowerment programs focus on one specific aspect in isolation. Many empowerment activities focus solely on improving production skills without strengthening business management and marketing capacity. This situation often results in suboptimal and unsustainable community business development. In the context of fishery-based household businesses, empowerment approaches that simultaneously integrate production capacity building, financial management literacy, and digital marketing are relatively limited. This highlights the need for a more comprehensive community empowerment approach to enhance community business capacity.
Based on these gaps, this community service activity aimed to increase the capacity of community groups to utilize the potential of fishery resources for business development. Specifically, this activity aims to improve the production capacity, financial management literacy, and digital marketing skills of members of the Family Welfare Empowerment Group in Matara Village, Merauke Regency. This program focuses on developing fish nuggets as a value-added processed product that utilizes the potential of local fisheries. The main question to be answered is how an integrated community empowerment approach through training in production, financial management, and digital marketing can increase the business capacity of community groups.
This study contributes to the development of research on local resource-based community empowerment, particularly in the household-scale fisheries processing sector. Unlike empowerment programs, which are generally fragmented, this study offers an integrated approach that combines production capacity building, financial management literacy, and digital marketing utilization in a single set of interventions. The primary contribution of this research is demonstrating that the integration of these three aspects can comprehensively strengthen the business capacity of women's groups, not only in technical production but also in managerial skills and market access. Furthermore, this research provides an empirical overview of the implementation of a community-based empowerment model in PKK groups in rural areas, which is relevant to supporting the sustainable development of micro-enterprises based on local potential.

The activity was held at the Matara Village Hall in Merauke Regency and attended by 20 PKK mothers. The implementation of the community service program regarding assistance in increasing the production capacity of financial management and digital marketing of PKK fish nuggets in Matara Merauke village was designed through a community-based participatory approach, in which the main subjects were actively involved in the preparation, implementation, and evaluation processes (Helmi et al., 2025). The main objective of this activity was to provide mothers or the community with a comprehensive understanding of financial literacy and digital marketing, as well as the practice of developing basic fish ingredients into ready-to-eat nuggets that are ready to be marketed with competitive packaging and product quality. The community service method was implemented in stages through preparation, implementation, and evaluation. These mentoring activities are designed to ensure that the entire process is systematic, structured, and delivers optimal results for participants. Each stage was implemented using a participatory approach, ensuring that participants were actively involved in the learning process and hands-on practice.

2.1. Program Socialization
Program socialization was the initial stage, in which planned activities were introduced to village officials and PKK members. At this stage, the implementation team explained the program's objectives, implementation schedule, materials to be provided, and the benefits to be gained by participants. This outreach phase was also used to explore participants expectations and adapt training strategies to field conditions. Outreach was conducted through face-to-face meetings at the village hall using an open discussion method so that participants could share suggestions, needs, and challenges they had encountered in managing their fish nugget businesses. The socialization stage not only functioned as a means of conveying information but also built a joint commitment between the implementation team and participants.

2.2. Production Training (Processing Techniques, Sanitation and Packaging)
The production training phase is the core of this activity, in which participants receive material on the correct process for making fish nuggets. The training begins with an explanation of selecting fresh, high-quality fish. Participants were introduced to the characteristics of fresh fish and appropriate storage methods to maintain product quality.

Figure 1. Fish Nugget Production Training

Figure 1 shows that the participants were trained on how to make fish nugget dough, including mixing techniques, and the dough-forming process to achieve a compact texture and consistent flavor. During the practical session, the participants were also guided on implementing sanitation principles, such as maintaining clean equipment, practicing personal hygiene, and ensuring a contamination-free production environment.

Figure 2. Steaming and Frying Technique Training

Figure 2 explains the proper steaming and frying techniques to obtain optimal color and doneness. Finally, participants were provided with material on hygienic and attractive packaging methods, including the use of appropriate packaging and simple labeling with product information. Through this training series, participants are expected to be able to produce high-quality, safe, and marketable fish nuggets.

2.3. Financial Management and Digital Marketing
Training on financial management and digital marketing is provided to strengthen the skills of participants, especially PKK mothers, in developing food processing businesses more professionally and sustainably. Figure 3 introduces the importance of simple financial record keeping, such as calculating capital, production costs, selling prices, and recording daily cash flow. Participants were also trained to understand the difference between profit and turnover, determine the break-even point, and develop a financial plan that helps businesses remain stable despite fluctuations in demand.

Figure 3. Financial management training

Figure 3 shows digital marketing training, which focuses on utilizing social media as an effective and low-cost promotional tool. Participants are taught how to create engaging product content, take food photos using simple techniques, write persuasive descriptions, and utilize digital features such as marketplaces, instant messaging, and scheduled posting strategies. Furthermore, participants are taught the importance of building a brand image, maintaining a fast response to customers, and utilizing testimonials to increase product credibility. This training was expected to improve participants ability to manage business finances while marketing products more widely through digital platforms, allowing their businesses to grow, compete, and provide economic benefits for their families and the surrounding community (see Figure 4).

Figure 4. Digital Marketing Training

2.4. Program Evaluation
Program evaluation was conducted to measure changes in participant capacity after participating in the entire series of activities. The evaluation approach used was descriptive quantitative and simple qualitative, comparing conditions before and after training. Measurements were conducted using several key indicators. First, production capacity was measured by participants understanding of hygienic production techniques and process consistency. Second, financial management literacy was measured by participants ability to prepare simple financial records, calculate production costs, and determine selling prices. Third, digital marketing skills were measured by participants ability to use social media for product promotion, including content creation and product descriptions. Data were collected through direct observation during the activities, group discussions, and evaluation of participants understanding before and after training (a simple pretest and posttest). The evaluation results were then analyzed descriptively to determine trends in participant capacity improvement in each trained aspect.

3.1. Program Socialization
The outreach program is an important initial step in implementing community service programs. During this stage, the community service team met with village officials and members of the Matara Village Family Welfare Movement (PKK) to explain the objectives, benefits, and series of activities to be implemented. The outreach program demonstrated high enthusiasm among participants for the training offered. Discussions during the outreach program revealed that most participants were interested in developing fish-based processing businesses but still had limited knowledge regarding good production techniques, business financial management, and effective marketing strategies. This finding indicates that the mentoring program was highly relevant to the needs of the local community. Socialization activities also serve as a means of building communication and trust between the implementation team and the community. With active participation from participants from the outset, subsequent implementation can be more effective.

3.2. Fish Nugget Production Training
Fish nugget production training aims to improve participants skills in processing raw fish into processed products with added economic value. The training was conducted through demonstrations and hands-on practice, enabling participants to gain a clearer understanding of each stage of the production process. The training covered selecting quality raw materials, fish processing techniques, adding additional ingredients, steaming, cutting, breading, frying, and product packaging. Furthermore, participants understood the importance of maintaining equipment cleanliness and production environment sanitation to ensure food safety. The training results demonstrated an increase in participants understanding of more hygienic and systematic production techniques. Participants also began to understand the importance of consistency in the production process to maintain product quality. This aligns with the concept of Good Manufacturing Practices (GMP), which emphasizes hygiene standards, raw material quality, and production process control in the small-scale food industry (Febri et al., 2024). With improved production skills, it is hoped that PKK groups will be able to produce higher-quality fish nuggets, thereby increasing their competitiveness in the local market.

3.3. Financial Management Training
One common problem faced by micro-entrepreneurs is the lack of systematic financial record-keeping. This was also found in the Matara Village Family Welfare Movement (PKK) group, where most participants had not yet recorded their business finances separately from their household finances. Through financial management training, participants were introduced to the basic concepts of business financial management, including recording income and expenses, calculating production costs, and determining product selling prices. Participants were also trained to use simple financial record-keeping formats, such as daily cash books. The results of the training indicated that participants began to understand the importance of financial record-keeping in running a business. With more structured record-keeping, entrepreneurs can understand the amount of production costs incurred and the profits earned from product sales (Gamayuni et al., 2020). Furthermore, the ability to manage business finances can also help MSMEs make more informed business decisions, such as determining production strategies, setting competitive selling prices, and planning for future business development.

3.4. Digital Marketing Training
The development of information technology provides significant opportunities for small businesses to market their products more widely through digital media. However, the use of this technology remains limited among the people in Matara Village. Through digital marketing training, participants were introduced to various social media platforms that can be used for product promotion, such as Facebook, Instagram, and WhatsApp Business. Participants were also trained in basic digital marketing techniques, including creating attractive product photos, writing product descriptions, and effectively sharing product information with consumers. The training results indicated that participants began to understand the potential of social media as an effective and low-cost promotional tool. Some participants even expressed interest in marketing fish nuggets through social media to reach a wider consumer base. The use of digital marketing by MSMEs was found to be a crucial strategy for increasing product competitiveness in the digital economy era (Tanuwijaya et al., 2024). This finding is in line with modern marketing concepts that emphasize the importance of utilizing digital technology to build relationships with consumers and expand market reach (Kotler & Keller, 2016). By leveraging information technology, businesses can expand their market reach and build closer relationships with consumers.

3.5. Impact of the Program on Community Empowerment
The results of the activity demonstrated that an integrated empowerment approach had a more comprehensive impact than a single training approach. Participants capacity was enhanced not only in technical production aspects but also in managerial and marketing skills, which are key factors in the sustainability of micro-enterprises. From a production perspective, participants demonstrated an increased understanding of more hygienic and systematic production standards. This is crucial because product quality is a key factor in increasing competitiveness in the local market. However, this improvement still requires further mentoring to ensure consistent implementation in daily practice. In financial management, significant changes were evident in the increasing understanding of the importance of separating business and household finances. This ability forms the basis for more rational business decisions, such as pricing and cost control. This finding aligns with previous research that emphasized financial literacy as a crucial factor in the sustainability of MSMEs. Meanwhile, in digital marketing, participants began to recognize the potential of social media as an effective and low-cost promotional tool. However, limitations in consistent use and advanced technical skills remain challenges that need to be addressed in the next phase.
Overall, the integration of the three training components (production, finance, and digital marketing) had a synergistic effect in increasing participants' business capacity. However, several obstacles remained, such as limited mentoring time, varying levels of participant understanding, and access to digital technology. Therefore, a more sustainable follow-up program is urgently needed to strengthen the long-term impact of this empowerment program. These findings also indicate an improvement in women’s economic participation at the household level, which represents a key dimension of community-based empowerment and contributes to strengthening household economic resilience in rural contexts.
A more detailed reading of the program outcomes shows that the intervention worked because it did not treat production, finance, and marketing as separate capacities. In many community-based business programs, participants are trained to produce goods but are left without the managerial and promotional skills needed to turn those goods into sustainable income. In Matara Village, the combination of these three components created a more practical learning sequence: participants first learned how to make a better product, then how to calculate its costs, and finally how to introduce it to potential buyers. This integrated logic is consistent with participatory empowerment approaches that emphasize strengthening technical and managerial capacity simultaneously (Helmi et al., 2025).
From a production perspective, fish nugget processing is not merely a cooking exercise but a strategy to increase the added value of local fishery resources. Transforming fresh fish into a processed product can extend product usability, improve consumer attractiveness, and create new opportunities for household-scale entrepreneurship. This is important in areas with fishery potential because local resources often generate higher economic returns when processed rather than sold in raw form. Therefore, the findings support earlier work showing that fish-based product diversification can be a realistic entry point for microenterprise development in coastal and rural communities (Jumadil, 2025; Zukryandry et al., 2024).
Another important finding concerns the role of hygiene and production consistency in shaping product feasibility. Participants not only learned the stages of nugget preparation but also became more aware that cleanliness, standardization, and packaging affect how consumers perceive product quality. This is important because small food businesses often struggle not because the product is unacceptable, but because quality is inconsistent across batches. By introducing sanitation principles and simple production disciplines, the program helped participants move closer to the logic of small-scale good manufacturing practices, which are essential for food safety and market confidence (Febri et al., 2024).
In the financial dimension, the program addressed one of the most common weaknesses of household-based enterprises, namely, the absence of simple but regular bookkeeping. Before the training, several participants reportedly still mixed business money with household spending, making it difficult to identify actual production costs and business returns. After the intervention, participants began to recognize that financial records are not merely administrative notes but tools for decision making. This shift is important because basic bookkeeping helps microentrepreneurs control spending, evaluate profit margins, and plan future production more rationally (Gamayuni et al., 2020; Manuji et al., 2026).
Improvements in financial literacy also have broader implications for business resilience. When participants understand how to calculate input costs, selling prices, and cash flow, they are better prepared to respond to fluctuations in raw material prices or changes in market demand. In other words, financial management strengthens not only business orderliness but also business adaptability. For women-led household enterprises, this type of capacity is particularly important because it reduces the risk of underpricing products and helps ensure that business activities generate real economic benefits for the family. This finding reinforces the argument that financial literacy is a foundational pillar of microenterprise sustainability (Apriadi et al., 2025).
The digital marketing component added another layer to the empowerment model. In geographically dispersed or rural contexts, social media can reduce the limitations of face-to-face selling by allowing products to reach buyers beyond immediate social networks. The training helped participants realize that digital promotion does not always require sophisticated technology; instead, it can begin with simple practices such as taking clearer product photos, writing persuasive captions, and using messaging applications for customer communication. This result is in line with previous studies showing that digital platforms are increasingly important for MSME visibility and market access (Sundari & Lestari, 2022; Herlina & Simabur, 2025).
At the same time, the findings suggest that digital marketing should not be understood narrowly as simply posting products online. Effective promotion also depends on how products are presented, how quickly sellers respond to inquiries, and whether the business can build trust through consistent communication. In this sense, digital literacy and business branding are closely connected. The training introduced participants to a more consumer-oriented way of thinking in which product quality, visual presentation, and customer interaction all contribute to purchasing decisions. This interpretation reflects broader marketing principles that emphasize value communication and relationship building in competitive markets (Kotler & Keller, 2016; Tanuwijaya et al., 2024).
The program also has significance from the standpoint of women’s empowerment. PKK groups are not only social organizations but also potential economic actors at the village level. When women gain production, financial, and marketing skills, they strengthen their roles in household income generation and collective village-based enterprise development. The findings indicate that empowerment in this case was not limited to skill transfer but also involved strengthening participants’ confidence, initiative, and decision-making capacity. This is highly relevant to village empowerment policies that position community groups as drivers of local economic development (Badan Pemeriksa Keuangan Republik Indonesia, 2024).
Another point that deserves attention is the value of the participatory approach used in the program. Because the activities were preceded by socialization and open discussion, the training responded more directly to the actual needs and expectations of the participants. This likely contributed to the high level of engagement observed during the implementation process. Participatory methods are important in community service because they reduce the distance between facilitators and beneficiaries, allowing programs to be shaped by local realities rather than imposed from outside. The Matara Village case shows that active involvement from the beginning can support stronger program ownership and more meaningful learning outcomes (Helmi et al., 2025).
Even so, the results indicate that the long-term impact will depend on follow-up support after the initial training phase. Skills introduced during short-term interventions can weaken if participants do not receive continued mentoring related to production consistency, digital promotion routines, and simple business administration. Therefore, future programs should consider periodic assistance, product development support, and stronger linkages with local markets or village institutions. A sustainable empowerment model requires continuity, not only initial exposure. In this respect, the present program provides an important foundation, but its wider success will depend on whether the capacities introduced can be maintained, expanded, and translated into stable household business activity over time (Lubis et al., 2026; Sifwah et al., 2024).

This community service activity successfully increased the production capacity, financial management skills, and digital marketing skills of the Matara Village Family Welfare Movement (PKK) members. This program positively contributed to the development of fish-based food processing businesses and encouraged community economic independence. The training conducted improved not only technical skills in fish nugget production but also strengthened managerial and marketing capabilities, which are important for business sustainability. With this assistance, it is hoped that PKK groups can continue to develop their businesses independently and sustainably.