The establishment of BUMDes is not only measured by financial performance such as turnover and profit but also from social point of increasing citizen participation and its contribution to environmental preservation.
By
SIWI NUGRAHENI
·5 minutes read
SALOMO TOBING
Siwi Nugraheni
Village-owned enterprises or BUMDes are expected to play a key role in improving the rural economy. Apart from being one of the village's original sources of income, BUMDes can also open up employment opportunities and become a source of income for local residents.
Data posted at the Villages, Disadvantaged Regions and Transmigration Ministry (Kemendesa PDTT) show the number of BUMDes continues to increase year to year. The number reached 57,288 in 2021, rising from 51,134 in 2020 and 50,199 in 2019. As of 2022, there are 60,417 BUMDes and 6,583 joint BUMDes. Of that number, 12,285 BUMDes have legal entities. The ministry is targeting 2028 BUMDes in every village.
Not all BUMDes carve success stories. President Joko “Jokowi” Widodo has at least twice highlighted the quality of BUMDes. In 2019, the President said there were 2,188 BUMDes that were not operating and 1,670 BUMDes were operating but they did not contribute to the village income. Two years later, at the launch of BUMDes legal entity certificate, the President again reminded the people that they must feel the real benefits of BUMDes.
Some observers mention a number of challenges faced by BUMDes. First, government policies are considered to still limit the management of BUMDes as business entities. For example, the rules regarding the term of office of directors and managers, which are limited to a maximum of two terms with each period being five years instead of leaving it to the decision of the village meeting.
The Kemendesa PDTT states that various policies have been launched in the spirit of strengthening the position of BUMDes. For example, the BUMDes status as a legal entity will make it more agile.
The dialogue between BUMDes activists, managers and observers and the government (the Kemendesa PDTT) is expected to always be open so that the goals set by the ministry can be achieved.
Determining a BUMDes business unit is not always easy.
The second challenge is that the managerial capacity of BUMDes managers is not yet sufficient. BUMDes management must have an entrepreneurial spirit and be able to manage BUMDes professionally. A creative and innovative entrepreneurial spirit is needed so that BUMDes are keen to see opportunities.
Determining a BUMDes business unit is not always easy. In addition to considering the potential of the village and providing the goods/services needed by residents, it is also hoped that BUMDes businesses will not become new competitors for businesses owned by villagers.
BUMDes in areas that have natural beauty potential, cultural uniqueness, or historical building heritage usually choose tourism village business units, such as Ponggok BUMDes in Klaten regency, Candirejo BUMDes in Magelang regency, and Kutuh BUMDes in Badung regency.
BUMDes in fishing areas can choose a business unit that provides tools and equipment for going to sea, such as BUM Nagari Tunas Jaya Sasak in West Pasaman. When the majority of the population have difficulty in obtaining clean water, Cibodas BUMDes in West Bandung is involved in the business of providing clean water. Meanwhile, the Panggungharjo BUMDes in Bantul is engaged in waste management to cope with pollution caused by waste.
These various examples show that village potential and the residents' needs are taken into consideration in determining BUMDes businesses. The professionalism of managing BUMDes is marked by accountable and transparent activities and policies.
The results of visits to several villages provide information that BUMDes managers in several villages are still relatives and close to village officials, thus opening up the risk of management, which tends to be "family-like" and full of conflicts of interest. Apart from improving managerial skills and building a transparent system, what is equally important is proving that family management must be professional.
Non-economic mission
When discussing the BUMDes performance, the topic is almost always about turnover, financial benefits and their contribution to the village's original income. One political figure once stated that the success of BUMDes can be seen from their ability to generate profits in larger amounts than the village funds allocated as equity for the business entity.
Government Regulation Number 11 of 2021 concerning Village-Owned Enterprises states that BUMDes are established to manage businesses by utilizing village assets and providing services and/or other types of businesses to achieve the welfare of village communities. A more prosperous society is not only measured by increasing income. BUMDes has a social mission, which is to benefit marginalized groups in society, such as the poor and disabled people. Appreciation must be given to BUMDes that gives priority to these groups to fill job vacancies.
Increasing the welfare of rural communities is to increase the economic capacity but without compromising nature or the environment.
BUMDes businesses must also be in line with environmental protection. One of the unique assets of most rural areas that are not found in urban areas is the better quality of nature and the environment. Increasing the welfare of rural communities is to increase the economic capacity but without compromising nature or the environment.
Improving the quality of BUMDes is the next task. The establishment of BUMDes, which aims to improve the welfare of villagers, is not only measured by the financial performance in the form of turnover and profits, but also from a social point of view (its benefits for marginalized community groups), increasing citizen participation and its contribution to environmental preservation.
SIWI NUGRAHENI, Lecturer at the School of Economics, Parahyangan Catholic University
