<![CDATA[The production of Arak Bali is one of the thriving economic activities in the community of Sidemen District, Karangasem Regency. The success of Arak Bali production is influenced by various factors of production, such as business capital, labor, raw materials, and technology. In addition to economic factors, social capital is also believed to play a role in supporting the effective use of these factors of production. This study aims to analyze the effects of business capital, labor, raw materials, and technology on the production of Arak Bali and to examine the role of social capital in moderating the effect of business capital on the production of Arak Bali in Sidemen Subdistrict, Karangasem Regency. This study employs a quantitative approach with a sample size of 87 arak farmers selected through simple random sampling. Data were collected through questionnaires, interviews, and documentation. The analysis technique used was Moderated Regression Analysis (MRA). The results of the study indicate that business capital does not have a significant effect on the production of Arak Bali, with a significance value of 0.355. Labor also does not have a significant effect on the production of Arak Bali, with a significance value of 0.235. Technology does not have a significant effect on the production of Arak Bali, with a significance value of 0.554. Meanwhile, raw materials have a positive and significant effect on the production of Arak Bali, with a significance value of 0.000. The results of the moderation analysis indicate that social capital moderates the effect of business capital on the production of Arak Bali, with a significance value of 0.044. The research findings indicate that raw materials are the most critical production factor in increasing Arak bali production in Sidemen District. Furthermore, social capital has been shown to play a role in enhancing the effectiveness of business capital utilization; thus, the success of Arak Bali production is influenced not only by economic factors but also by the quality of social relationships among arak farmers. Based on the research results, it is recommended that arak farmers pay closer attention to the availability of raw materials and continue to strengthen social capital through enhanced cooperation, trust, social networks, and social participation. Local governments are also expected to support the sustainability of Bali Arak production through programs focused on improving the availability of raw materials and strengthening the business capacity of arak farmers.]]>
