Abstract

Law No. 6 of 2014 on Villages, provides an important position for the village to play its role in development. The important role of the village is the local authority possessed by the village in managing its household. Village economy is one of the important factors in assessing the success of village development. The village economic problems need to be solved by handling thoroughly, starting from the construction of infrastructure facilities, to developing the potential of the village to be optimized into opportunities for business opportunities that prosper the village community. Village Owned Enterprises, here in after referred to as BUMDes, become one of the important mandates contained in the Village Law. BUMDes urgency is affirmed in Permendesa number 4 of 2015. The context of BUMDes establishment is expected to be the driving force of the village economy, meaning that the establishment of BUMDes is not merely an orientation to the profit of the institution, but the more essence is the establishment of BUMDes should be able to provide both economic and social benefits to villagers.The type of this research is descriptive qualitative, with the aim to identify and analyze the feasibility aspects of BUMDes business in terms of social and economic aspects. The results showed that BUMDesIjen Lestari Tamansarivillage District of Banyuwangi gave positive impacts economically and socially for the villagers like directly or indirectly. BUMDes's main business sector engaged in tourism management has an impact for residents around Ijen region, in the form of additional income from multiplayer tourism effects. The direct impact of BUMDes employees' involvement in the management of activities and community involvement in BUMDes businesses such as local food producers packed with BUMDes and community-based homestay managers.Keywords: BUMDes, Social Aspect, Economic Aspect, Banyuwangi

Highlights

  • 1.1 Research BackgroundThe birth of Law No 6 of 2014 on the Village, here in after referred to as the Village Law, provides an important position for the village to be able to play its role in national development

  • The results showed that BUMDesIjen Lestari Tamansarivillage District of Banyuwangi gave positive impacts economically and socially for the villagers like directly or indirectly

  • Discussion approach or focus group discussions. This discussion involves the village administration, community representatives affected by BUMDes and BUMDes officials, with the aim of obtaining the full information based on information extracted from previous observations and interviews or deepening the information submitted by the resource persons

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Summary

Introduction

1.1 Research BackgroundThe birth of Law No 6 of 2014 on the Village, here in after referred to as the Village Law, provides an important position for the village to be able to play its role in national development. The important role of the village is the local authority possessed by the village in managing its household. This strategic role is translated in the form of implementation of village development starting from the process of planning, implementation and accountability activities. The village government is expected to be more observant in recognizing all the problems and potential concerning the development of the village. The village economic problem needs to be solved by handling thoroughly, starting from the construction of infrastructure facilities, to developing the potential of the village to be optimized into opportunities for business opportunities that prosper the village community

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