Abstract
Village-owned enterprises (BUMDes) in Indonesia, as village economic institutions can drive village potential, by the Central Maluku communities BUMDes is called as a BUMNeg which have the same meaning. BUMNeg becomes village income (Village Law, No. 6 of 2014). Objectives of the study: (1) Knowing the Role and Development of Village-Owned Enterprises that have been intervened through capital participation from the Village Fund, (2) Understanding the potential and capacity of villages constraint factors and main supporters in supporting the activities of Village-Owned Enterprises, (3) Obtaining a management model of Village-Owned Enterprises that is in accordance with the local conditions of the village community. The study used a qualitative approach. The results of the study illustrate (1) the role of BUMDes in the sample villages having different results. In Waai Villlage the existence of the BUMDes has been carried out in accordance with the functions of the BUMDes, namely carrying out economic functions. Whereas the existence of BUMDes in Tulehu Village was not carried out, village funds were only embedded in goods purchased, and only functioned socially, not functioned to generate village income. (2) Obstacles and main supporters of the BUMDes are: (a) The existence of potential natural resources, but not yet managed, (b) Potential Number of residents not managed as a business unit management market in Tulehu Village, (c) Custom institutions do not function, (d) Village funds are not managed according to their functions in Tulehu Village, in Waai village according to function, (e) Location of Waai Village is very strategic with potential villages. (3) BUMDes Strengthening Model in Tulehu village will exist through three stages: activation, implementation and development. Strengthening the BUMDes in Waai village, namely: building a network with the village’s government / king to continue to maintain trust relations and build networks with other parties as a reinforcement of BUMDes development
Highlights
Maluku Province consists of 11(eleven districts / cities)
(2) Obstacles and main supporters of the BUMDes are: (a) The existence of potential natural resources, but not yet managed, (b) Potential Number of residents not managed as a business unit management market in Tulehu Village, (c) Custom institutions do not function, (d) Village funds are not managed according to their functions in Tulehu Village, in Waai village according to function, (e) Location of Waai Village is very strategic with potential villages
There are numbers of problems that have become mines for the sustainability of rural poverty in Central Maluku, namely: (1) bonded labor system that regulates the dependence of farmers or fishermen on investors (Deng et al, 2020), (2) unreasonable prices (Forsyth, 2014), (3) lack of governance at the village level regarding marketing, price and production (Lopez & Winkler, 2018), (4) lack of village institutions that regulate community economic activities even if they are not running in the long run, even those institutions are just names, because they are constrained by governance in other words the norms are violated (Abrahams, 2015)
Summary
One of the districts is the location of this study is Central Maluku Regency, which is the oldest Regency in Maluku Province, with the condition of the villages are still in very lagging category in theirs Economic Resilience (Imperiale & Vanclay, 2016). The development should be more advanced compared to other districts in Maluku, because it has high potential natural resources, but has not been managed optimally. All villages in Central Maluku have potentials; some are the same some are different, with a level of management that does not guarantee the increasing of added value at the village community level (Muryanti, 2020). To bridge the economic strengthening of rural communities, one of the programs of the Ministry of Rural Affairs is the establishment of Village-Owned Enterprises (BUMDes), as a place for village businesses that can mobilize all the potential of the Village to be jointly managed
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