Institutional Strengthening of Village-Owned Enterprises in Supporting Village Economic Self-Sustained

Analysis of the Management of Village-Owned Enterprises between Suwaluh Village, Sidoarjo Regency and Pajaran Village, Malang Regency

Abstract

The village economy is the central component of village welfare. Lately, development toward village self-sustained continues to be emphasized by the village government. The government through Law Number 6 of 2014 concerning mandating villages to be more self-sustained and flexible in building and developing their respective villages. One of the instruments in village development and development is Village-Owned Enterprises (BUM Desa) which has the flexibility to manage and utilize the potential of the village in order to generate profits that have an impact on the village’s original income to support the self-sustained of the village economy.
In the development of village self-sustained, the government through the Regulation of the Minister of Villages, Development of Disadvantaged Regions, and Transmigration Number 2 of 2016 concerning the Developing Village Index took part in classifying villages with the aim of simplifying in handling and planning village development. Based on this classification, it is necessary to analyze and describe Village-Owned Enterprises (BUM Desa) management at each level of classification, especially since this study is trying to compare villages with developing status and villages with developed status.
In addition, it is necessary to recognize the strategies implemented by Village-Owned Enterprises (BUM Desa) in supporting village economic self-sustained and what are the obstacles faced by Village-Owned Enterprises (BUM Desa). The results of the analysis using SWOT analysis found that BUM Desa Suwaluh Mandiri Sejahtera, which is a BUM Desa in a village with developing status, can implement a more aggressive strategy by developing its human resources (HR) and improving the wage system.
Meanwhile, BUM Desa Ki Ageng Pajaran, which developed in a village with an advanced status, is obliged to make improvements towards the weaknesses in order to acquire all the opportunities and potentials that Village-Owned Enterprises (BUM Desa) has. Both villages have weaknesses in the development and management of human resources and still require various types of capital options and collaboration with other parties to develop Village-Owned Enterprises (BUM Desa). Therefore regulations are needed as a basis for the development and management of Village-Owned Enterprises (BUM Desa) in a more structured manner based on their conditions. In addition, it is necessary to increase the capacity of human resources at Village-Owned Enterprises (BUM Desa) and access to the utilization of Tanah Kas Desa (TKD) as capital for developing Village-Owned Enterprises (BUM Desa).