THE MODEL OF BUMDES (BADAN USAHA MILIK DESA) RESILIENCE: OPTIMIZING BUMDES PROFESSIONALISM TO ACHIEVE SOCIO-ECONOMICS BENEFITS IN RURAL AREAS

• Main Author: Setiawan Kusmulyono, Muhammad
• Format: Dissertations
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/79981
• Institution: Institut Teknologi Bandung

Rural became the headline of national development with the enactment of the Village Law in 2014. Since then, villages have had greater authority to manage local assets. Unfortunately, many Bumdes still have collapsed and are experiencing problems, especially during the pandemic. Therefore, this study formulates at least three research objectives to explore the challenges Bumdes experienced in providing social and economic benefits, understand how the relationship between village capital influences Bumdes resilience, and develop the most relevant Bumdes resilience model. This dissertation applies mixed-method research with a sequential exploratory approach from qualitative to quantitative because Bumdes is a new phenomenon that needs to be explored in more depth. The qualitative research process began by conducting action research at Bumdesa Mitra Cibogo Sejahtera (MCS) in Tangerang Regency, Banten. The action research activity, preceded by a preliminary study with interviews with several stakeholders related to the village, showed that the propositions that emerged in the SOTA framework were appropriate. Still, the application in the field was very different. Preliminary findings from a preliminary study show that the resilience of a Bumdes is closely related to the support of the village head, Bumdes management, competitiveness of Bumdes businesses and services, and village community participation. Action research activities were carried out during 2021 amidst limitations due to the pandemic. The results of action research in Bumdesa MCS indicate the dynamics in the operationalization of Bumdes in a village. The dynamics faced by Bumdes to achieve resilience include fluctuating village government support, dependence on the Bumdes director, the competitiveness of the Bumdes business being run, and support from the village community. The action research findings are then compiled into a quantitative research construct, becoming a research model to identify whether generalization and transfer can occur. This quantitative research was carried out in 3 regions using the cluster sampling method, namely Banten Province, West Java Province, and Central Java Province, and obtained 1073 samples using cluster sampling. This region was chosen because it represents the predecessor study carried out in this dissertation and the dynamics of more active village growth in this region. The quantitative research results indicate that only Bumdes professionalism could significantly affect Bumdes resilience. This happens because government support and community participation have less significance in the resilience of Bumdes. In the next hypothesis, the village head's commitment has a significant role in government support even though the village head's capacity simultaneously less contributes to government support. On the other hand, Bumdes leadership and Bumdes competitiveness significantly influence Bumdes professionalism, and the social and democratic capital of the community also contributes significantly to community participation. Theoretical research implications indicate that internal factors in social enterprise organizations (Bumdes) are significant determinants in determining the resilience of a social enterprise entity. Furthermore, on the theoretical side, leadership in social enterprises has an important role in ensuring the realization of a social enterprise's social vision and mission. Regarding practical implications, policymakers regarding Bumdes need to consider and adjust appropriate support for each Bumdes. The research results show that the government's role is less significant, which could stem from the inaccuracy of the support provided. On the other hand, another practical implication resulting from this dissertation is that business model innovation needs to be taught and conveyed to Bumdes units throughout Indonesia to avoid monotony in the businesses offered. Apart from that, an important practical implication is building good public communication in the village so the community can have a sense of ownership of the Bumdes.