Articles

Strengthening Community Trust through Good Village Governance: An Empirical Study of Village-Owned Enterprises (BUMDes) In Indonesia

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This study investigates how good village governance enhances community trust in Village-Owned Enterprises (BUMDes) in Indonesia by employing a qualitative approach involving in-depth interviews, field observations, and document analysis across selected high-performing BUMDes. The findings reveal that transparency, accountability, participation, and responsiveness are central to shaping cognitive, relational, and institutional trust, with community confidence strengthened when governance processes are open, inclusive, and consistent. Conversely, mismanagement, elite capture, and political interference undermine trust and institutional legitimacy. The study contributes to theoretical perspectives on institutional trust, rural social capital, and participatory governance, while offering practical recommendations for strengthening nationwide BUMDes governance models through improved financial transparency, community-based monitoring, and participatory planning. Although limited by its site-specific context and qualitative scope, the research provides a foundation for future comparative, mixed-method, and longitudinal studies on governance–trust dynamics in rural development institutions.

BUMDes Partnership Model with Microfinance Institutions in the Context of Developing the Tourism Industry and Creative Economy in Madura

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Independent Village as a dream of the ideals of National Development, so far it has faced many obstacles. The Social and Economic Sector is one of the many factors faced in the village. In the economic sector, there are still many people who are below the poverty line. Data from BPS (Central Statistics Agency) in 2017 there were 26.58 million people or 10.12% of Indonesia’s population below the poverty line. Meanwhile, in the social sector, the nature of mutual cooperation has begun to fade among rural communities. One of the efforts that can alleviate poverty and increase economic growth in rural areas is the existence of BUMDes in the Labang Bangkalan District, Madura, which is spread over 3 villages. There are 3 active BUMDes in the Labang sub-district, namely in Labang, Sukolilo Barat and Bunaji villages.

To improve the village economy, there are two approaches that can be taken: a) Community needs in making changes. b) Political will and the ability of the village government together with the community in implementing the plans that have been prepared (Rutiadi, 2001 in Bachrein, 2010)

This study aims to see the appropriate partnership model between BUMDes and Microfinance Institutions in improving the tourism and creative economy sectors in Labang sub-district.