BUILDING A VILLAGE OWNED BUSINESS ENTITY BASED ON THE VALUE OF LOCAL WISDOM Sri Juni Woro Astuti (a) Esa Wahyu Endarti (b) Dwilesno Panglipursari (c)
(a) (b) Faculty of Social and Political Sciences, Universitas Wijaya Putra
(c) Faculty of Economy and Business, Universitas Wijaya Putra
Abstract
The acceleration of rural economic development in Indonesia is expected to be realized through the establishment of Village Owned Enterprises (BUMDES). However, there are still many BUMDes that have not run effectively and the level of sustainability is still low. To ensure the sustainability of BUMDes, it requires the ability and willingness of the community and government, which can be improved through institutional capacity building, but in the implementation it is often less effective. The purpose of this research, therefore is to identify the problems faced by the Village Owned Enterprises and to look for alternative models to increase their capacity. The research method used is qualitative with a case study in Beton Village, Gresik Regency because the BUMDES has not yet operated even though it has been formed since 2018. Data collection uses in-depth interviews, FGDs and documentaries. The results of this study indicate that the obstacles faced by BUMDES that are less developed are the lack of understanding of village officials regarding BUMDES management and the lack of commitment and low commitment of the Village Head. To overcome these obstacles, alternative solutions are needed in the form of an individual capacity building approach by synergizing with the values of local village wisdom.
Keywords: Commitment, Capacity building, local wisdom, Village Owned Enterprises
