THE ROLE OF VILLAGE-OWNED ENTERPRISES ON RURAL ECONOMIC DEVELOPMENT IN CIAMIS REGENCY

• Main Author: Habib Baihaqi, Aa
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/71988
• Institution: Institut Teknologi Bandung

Villages play an important role of development in Indonesia, especially after the issuance of Law Number 6 of 2014 concerning villages that shifted the role of the village from being an object to a subject of development. Through the principles of recognition and subsidiarity, villages are empowered to regulate and manage village affairs independently. One of the strategic efforts to elevate the productivity of economic rural development is by establishing Institutional village enterprises (BUMDes). However, there are still many BUMDes, including some areas in Ciamis Regency, which still encounter difficulties to meet the expectation required by existing regulations. Thus, the researcher needs to examine more deeply the supporting and/or inhibiting factors in the development of BUMDes so that they can trigger the development of the rural economy in Ciamis Regency. This research uses a qualitative method with a case study approach to BUMDes which has been running in Panjalu District. The result of the study shows that the development of BUMDes is largely determined by several key factors, both internal and external, consisting of Human Resources (HR) capacity, leadership, capital investment, supporting infrastructure/technology, community participation, and relations with the village government. In addition, the role of BUMDes in rural economic development can be measured using the concept of Local Economic Development (LED) in which, in this case, BUMDes Rahayu Waluya Panjalu and BUMDes Sampoerna Jaya Maparah can be the examples of BUMDes that fulfilled the LED criteria. The success of BUMDes in supporting rural economic development can be seen from the Economic Resilience Index (IKE) BUMDes can drive the community's economy, provide jobs, facilitate products, and explore the local economic potential in the village.