Development of Village Owned Enterprises (BUMDES) as a Solution toAchieve Mandiri Village

Kurniawan and Irman Firmansyah
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Kurniawan: Padjajaran University, Sumedang, Indonesia
Irman Firmansyah: Faculty of Economics , Siliwangi University, Tasikmalaya, Indonesia

International Journal of Business and Economic Affairs (IJBEA), 2018, vol. 3, issue 5, 185-194

Abstract: Regional development strategies in Indonesia from the economic sector start from the lower communityso that the central government expects that the village government (government bottom) has a business entity as asource of income that can support the economic growth of the community. The business entity is called BUMDes. Butin fact the BUMDes are still underdeveloped and need the help of many parties. This research identi es problemsthat hinder the development of BUMDes and provides solutions to develop soon. The study was conducted in theWest Java Province of Indonesia using the Analytic Network Process method. The study was conducted on 7 expertswho understood the problem of developing BUMDes in West Java, through the stages of focus group discussions andquestionnaires. The results show that the main problem that impedes the development of BUMDes from the internalside is the lack of business management and institutional management, while from the external side is the competitionof product marketing. While the internal solutions that can be used to solve these problems are partnerships with otherparties and external solutions are the utilization of natural resource potential in the village. This research can be usedas a reference for all parties including the government and the community to develop BUMDes in order to improve theeconomy of the community through the identi cation of several problems in the eld and the best solutions provided bythe results of this study.

Keywords: BUMDes; Village government; West Java (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:aya:ijbeaa:2018:p:185-194

DOI: 10.24088/IJBEA-2018-35001

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