Articles

Indonesian Village Owned Enterprises Accounting Information System, Social Capital and Sustainability Economics Post-Covid-19 Pandemic

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: Indonesian Village Owned Enterprises set up by mandatory from the central government. Hence, to be able to survive in the long run, it needs to maximize its social capital from its village citizen. Village citizens are the main stakeholders, suppliers, as well as consumers of Village Owner Enterprises. During the Covid-19 pandemic, many villages citizen lost their job due to social restrictions related to the disease. As the unemployment rate is higher, this could be an endangered Village’s economic sustainability. Based on that problem, this research examines the Village Owned Enterprises’ Accounting Information System (AIS) and Social Capital in order to achieve the village’s economic sustainability during the Covid-19 Pandemic.

This study type is survey research. Quantitative data are gathered using the questionnaires on 122 Village Owned Enterprises Managers in Indonesia. Data was then analyzed using Partial Least Square statistical models.

The empirical analysis results show that AIS has effect on Social Capital and Sustainable Economics. Hence, Social Entrepreneurship as one form of Social Capital has positive effects on village sustainable economics. AIS effect on sustainable economics is partially mediated by Social Capital. This is consistent with Resources Based View (RBV) Theory and Stakeholder Theory. The more Village Owned Enterprises could develop and maintain social capital, the higher sustainability economics in the villages as their stakeholders.

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.

Increasing Empowerment of Rural Economic Institutions through the Village–Owned Enterprises Development Program

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This study explains the program’s performance to increase the empowerment of economic institutions of rural communities by the Community and Village Empowerment Office in Sumedang Regency through the village-owned enterprise’s development program. This program aims to aid villages and village governments in establishing and enhancing village-owned enterprises. However, this program is different than expected. Because many village-owned enterprises still do not work, people do not know about the benefits of village-owned enterprises. The research was conducted using a qualitative methodology and the performance program guidance theory to evaluate program performance based on input, process, output, and outcome indicators. According to the study’s findings, the program has not performed optimally. Since several indicators have not been met, in the input indicator, the resources owned do not support program activities. Regarding process indicators, village-owned enterprise managers must improve their skills. Indicators of output reveal that village-owned enterprises could not develop village potential and locate suitable business units. Moreover, the community in the outcome indicators has not experienced the benefits due to a lack of ownership. Without considering the community’s needs, the village council established village-owned enterprises to comply with the rules.