Bumdes institution and it’s capacity to increase efforts, added value and marketing of seaweed production

Abstract

This study aimed to identify aspects related to the condition and institutional capacity of BUMDes (Village Owned Enterprises) in order to increase added value, marketing and seaweed farming income. This study was conducted in Takalar and Pangkep Regency as seaweed production centers and ponds in South Sulawesi. The research method used in this research was a case study with descriptive data analysis. The results shown that in the two regions there were about 62 BUMDes in Takalar Regency which spreaded in eight districts, and 55 BUMDes in Pangkep Regency spreaded in 12 districts. BUMDes are known as actively rural business units (units) but it is still not well institutionalized. Mostly BUMDes business still revolves around saving and loan businesses in a small scale. Observations in two BUMdes in seaweed production centers, namely in Laikang, Takalar Regency and in Pitusunggu, Pangkep Regency, BUMDes management has not been much in touch with seaweed agribusiness activities. The seaweed-related business unit in the BUMDes is mainly in Pangkep, in the form of processed food products (pastries) whose marketing is still limited so that added value and income are also still low. Other businesses such as trading seaweed products on a larger scale, cannot yet be developed because (1) generally seaweed farmers/cultivators use village middlemen (capital owners) so that their products must be sold back to the capital owners so that the BUMDes can make farmers as business partners (2) adequacy of BUMDes venture capital to develop businesses is still limited (3) skills of BUMDes members in managing businesses is lack (4) marketing reach, has not developed yet, (5) efforts to build partnerships with parties others are also lacking. In the next stage, the appropriate model in the development of the BUMdes is needed.