DEVELOPMENT OF VILLAGE-OWNED ENTERPRISES THROUGH INNOVATION

• Main Author: Auguste Bartholdi, Bayu
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/60902
• Institution: Institut Teknologi Bandung

Indonesia is a vast country with enormous potential to do business; the diversity of resources owned by Indonesia could be used to the maximum extent possible to improve its population’s welfare. According to the Ministry of Village, Development of Disadvantaged Regions, and Transmigration (KEMENDESA) database, 74.954 villages in Indonesia have competitive advantages to improve their people’s welfare. However, those competitive advantages are still not being exploited well. With the issuance of Law No. 6 of 2014 concerning the Villages, the Indonesian government has allocated Village Funds. These funds have mandated the village government to be more independent in managing the government and its various natural resources, including managing the village’s finances and wealth through the Village-Owned Enterprises (BUMDes). The research aims to determine how entrepreneurship skills, knowledge management function and good corporate governance could affect company (BUMDes) growth through innovation. The research approach uses the questionnaire and interview method to determine how the BUMDes develop their business through innovation. Research shows that to maximize the village’s economic growth. Innovation is needed for every village entity—both from village officials and the village community. The emergence of innovation is closely related to entrepreneurial skills, knowledge management function, and good corporate governance. Proper handling of these aspects is expected to increase innovation and maximize village funds utilization through BUMDes.