Abstract

Currently the government continues to strive to build and develop the economy of rural areas through community empowerment programs with the aim of increasing productivity, business diversity and regional potential with the aim of improving the economy and welfare of rural communities. One of the government programs is by providing a budget. Funds in the field of community empowerment are used to support capital for the formation of Village Owned Enterprises (BUMDes). Where in accordance with the objectives of BUMDes, namely optimizing the management of village assets and the potential of existing villages, to support the village economy, and improve the welfare of the village community. But unfortunately, until now the role and function of my BUMDes has not been effective and cannot be felt by the community. This is due to the incompetence and lack of professionalism of human resources managing BUMDes and the lack of integration of the businesses managed by BUMDes with the existing village potential so that it seems as if BUMDes stands only as a formality without supporting the economic potential of rural communities. The purpose of this study is to create a strategic concept in the management of BUMDes so that it runs more effectively and according to targets so that it can support the economy of rural communities through the development of human resource knowledge in managing BUMDes that is integrated with the economic potential of rural communities. So that BUMDes and Village Basic Pontesials are integrated in a business institution that supports the village economy for the welfare of the village community. This solution can help rural communities in strengthening their economy and provide knowledge views and open insight to BUMDes managers so that they can develop BUMDes into businesses that are in synergy with the community. This study uses primary data sourced from questionnaires and interviews aimed at BUMDes management employees to see the extent to which the abilities, expertise, and knowledge of BUMDes management employees can evaluate and innovate in the business.

Highlights

  • PRELIMINARY Currently, rural economic growth is still considered slow compared to urban economic development, this is due to monotonous economic development

  • Based on the indicators above, it can be interpreted that BUMDes employees in the Sei Bamban district have good problem performance

  • Based on the results of the R Square and F Square regression tests, it can be seen that the ability of the Cognitive Aspects of Human Resources (HR) in explaining Maslahah Performance is 74% and there is an influence with the model classified as Substantial between the cognitive aspects of HR on the performance of BUMDes which is oriented to the benefit of the community

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Summary

Introduction

PRELIMINARY Currently, rural economic growth is still considered slow compared to urban economic development, this is due to monotonous economic development. The government continues to strive to improve the welfare of rural communities through the use of the State Revenue and Expenditure Budget (APBN) in village development which is referred to as village funds. 2019 article 10 paragraph 2i, provides an explanation of the use of village funds in the field of community empowerment to support capital for the formation of Village Owned Enterprises (BUMDes) (PERMEN, 2018). BUMDes functions as a driving force for the village economy, a business institution that generates Village Original Income (PADes), as well as a means to encourage the acceleration of improving the welfare of rural communities. Where BUMDes acts as an umbrella institution in overshadowing the potential of villages and community business activities to be more effective and productive. Some of the obstacles for BUMDes in starting a business are the lack of business capital which can make BUMDes unable to carry out business diversification, the absence of adequate human resources in the management of BUMDes, so that institutional performance is not optimal, and lastly in institutional aspects, the level of public awareness and knowledge of BUMDes is still low (Agung, 2016).[3]

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