Articles

The Impact of the Existence of Village-Owned Enterprises (BUMDes) Business Sectors on Village Development in Indonesia

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Through various policy programs, the government provides stimuli for villages to manage their existing potentials, enabling them to develop independently and improve their economy. BUMDes (Village-Owned Enterprises) is one of the government’s flagship programs in village development, performing its role as an economic and social institution. The existence of BUMDes is expected to enhance economic self-reliance and community welfare. This research aims to empirically analyze the influence of business sectors and the number of businesses managed by BUMDes on the level of village development in Indonesia. By using the Propensity Score Matching method and linear regression on BUMDes data between 2019 and 2021, this research concludes that BUMDes engaged in social and commercial sectors have a significant impact on the level of village development. However, an increasing number of businesses operated actually decreases the effectiveness of the presence of the Business Sector of BUMDes on village development.

Building a Case Study of Cimaragas Village in the Ciamis Regency Using the Village Index

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This study investigates the development issues faced by the government in light of the Village Development Index, which measures the degree of village independence based on social, economic, and environmental factors as a map of village development. The research area for examining how the Village Law on village development is being implemented is Cimaragas Village, Cimaragas Subdistrict, and Ciamis Regency. By searching for data sources from the study of literature and related paperwork, this research was carried out in a qualitative descriptive manner. According to the study’s findings, based on the villages’ updated Village Building Index for the years 2018 to 2022, there is an improvement in the status of village independence. When development is carried out in a village in line with the law, but the development objectives are not met and village governance negatively impacts development, this situation is not ideal.