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

: 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.


INTRODUCTION
Utilizing local resources and potential to their fullest extent is one way to maximize a location's resources and potential. The local potential is comprised of natural resources, human resources, and social resources. The establishment of economic institutions in the Village supports the potential of local resources. Under Law Number 6 of 2014 about Villages, villages are permitted to establish village-owned enterprises to utilize all economic institutions, economic potential, and potential human and natural resources to advance the well-being of village communities. Establishing economic organizations whose management is carried out by the community is a novel strategy anticipated to expand and develop the village economy in light of acquired knowledge (Alkadafi, 2016, p. 33). A local economic institution is an institution at the local level engaged in economic activities that seek to meet people's needs and contribute to attaining a certain level of community welfare (Mariana & Sukasmanto, 2019, p. 43). Compared to urban areas, villages have more natural and human resources but lower poverty levels and community welfare (Sofianto, 2020, pp. 93-94). For this reason, the government of the Sumedang Regency established a program to empower economic institutions and improve the well-being of rural communities. This program is a component of a government policy that allows villages to establish villageowned enterprises. It is anticipated that the village-owned enterprise program will contribute to reducing social problems in society, such as unemployment and poverty, as well as assisting in the economic development of villages; thus, they can independently finance their own needs. However, until 2020, the level of Village, independent in the Sumedang Regency, remains low. Sumedang Regency had five independent villages by 2020, 91 developed villages and 175 still developing villages. Consequently, there are still a large number of villages that are economically dependent on the local government. As a village economic institution, it is anticipated that Village-owned enterprises will serve as the community's central economic pillar and contribute to its prosperity. Despite this, many village-owned enterprises in Sumedang Regency still struggle to manage and fully realize their communities' potential. Based on the information provided by the Community and Village Empowerment Office of the Sumedang Regency through 2020. There are 39 primary village-owned enterprises, 190 developing enterprises, 39 developed enterprises, and five independent enterprises (Community and Village Office Sumedang Regency, 2021). According to The percentage indicator for the performance of the development program in 2020 in figure 1 indicates that the program to increase the empowerment of economic institutions carried out through the village-owned enterprise development program has not been met. The expected target for 2020 is 100%, but the actual achievement is 82.2%, below the expected target. The Regional Government has endeavored to assist village-owned enterprises in establishing business units and enhancing the village economy. There are still deficiencies in the program's performance to increase the empowerment of village economic institutions and the welfare of rural communities through the development of existing village-owned enterprises. The performance of this program is one of the crucial factors that must be evaluated to determine the program's benefits. Good performance in a social program is required to reach the program's ideal objectives (Irmayani et al., 2019, p. 39). The problems include the community being unaware of the benefits of the village-owned enterprise program, and the Village's human resources remaining inadequate. The community believes those managing village-owned enterprises will receive a salary or wages initially. However, the community will be compensated if the relocated village-owned enterprises are profitable. Therefore, managers are compensated by the cash flow of village-owned enterprises. The Community and Village Empowerment Office is essential in developing village-owned enterprises.

METHOD
This research uses a qualitative methodology; qualitative research is a method used to explore and comprehend the significance of individuals or groups in human or social problems (Creswell & Creswell, 2018). This research method involves various participantcollected questions, procedures, and data. This research aims to unearth in-depth information regarding the effectiveness of programs designed to increase the empowerment of village economic institutions and the well-being of rural communities by the Community and Village Empowerment Office in Sumedang Regency. The obtained source data consists of both primary and secondary data. Primary data were collected directly from the Community and Village Empowerment Office in the Sumedang Regency, and secondary data were collected from relevant literature, journals, and other sources. The data was collected via observations, interviews, documents, and relevant literature studies.
The interview was conducted with several chosen informants. The informants included divisions of community economic empowerment, sections of community economic enterprises, village-owned enterprise managers, and residents of the Sumedang Regency. The gathered data is then analyzed to provide researchers with a basis for analyzing the data to comprehend the significance of the underlying social processes and interactions that represent reality on the ground. In addition, data arrangement and organization aid in the processing and interpretation of field data. The results of the data analysis provide a foundation for researchers to interpret the data and gain a deeper understanding of the performance program for the development of village-owned enterprises by the Community and Village Empowerment Office in Sumedang Regency. An approach to data analysis organizes data by reading or viewing the entire dataset, encoding all information, creating a summary, and interpreting or determining the significance of the data. The triangulation use source and method to evaluate the validity of the data.

RESULTS AND DISCUSSION I. Input Indicator
Input indicators are fundamental program requirements used to determine how well these requirements support the program's operation. Allocated resources can affect the performance of a program. Therefore it requires attention. The necessary program resources include the legal foundation, human resources, budget, infrastructure, and institutions. These resources are helpful, as they enable decision-makers to determine and ensure that the program's needs can be met and used to address existing problems. Thus, input indicators can be identified from several needs, such as legal foundation, human resources, budget, infrastructure, and institutions.
a. Legal Foundation The legal or policy foundation is the guiding principle for diverse program implementation activities. This legal foundation is necessary for implementing the program. Thus the actions or activities are directed and achieve the desired results. It is also advantageous for the village government and the community to comprehend village-owned enterprises established and managed. Therefore, the village government and the community comprehend the steps involved in establishing and managing village-owned enterprises and enhancing local own-source revenue (  ). Human resources are essential to implementing the development program of village enterprises. However, the need for more human resources relative to the number of existing village-owned enterprises prevents optimal implementation of development due to a lack of personnel. Therefore, routinely implemented development programs cannot be implemented.
c. Budget Budget is another factor that can affect the program's long-term viability. The program can be implemented with a budget because the budget is used to fund program implementation. Relates to the operational activities of the Office in running the program. A budget objective is a decision-making step when executing program activities (Manurung, 2022, pp. 6-7). The department's budget, derived from the Regional Revenue and Expenditure Budget, is used to implement the development program. The budget is developed following the requirements of the Office's planned program activities. The budget for the village-owned enterprise's development program is IDR 2,400,000,000, or approximately USD 158,468.16, and is adjusted annually.

II. Process Indicator
This indicator process aims to evaluate the implementation of the planned program. This process indicator is therefore determined by examining the executor's knowledge of the village-owned enterprise's development plan. Process indicators on program performance are utilized to determine the conformity of program implementation with the initial program implementation plan. Based on the minimum service standards, the Community and Village Empowerment Office's program for the development of village-owned enterprises is structured as follows:   Figure 3 shows the structure flow of the Community and Village Empowerment Office's development program for the villageowned enterprise. When conducting development programs, the Community Economic Empowerment Division is responsible. This division is responsible for the Community Economic Enterprises and Natural Resources and Appropriate Technology sections. The Community Economic Enterprises section is responsible for establishing village-owned enterprises, which is technically carried out by the community economic empowerment section's employees. The technical staff of the Community Economic Empowerment Sector conducts development by traveling directly to the Village or inviting village-owned enterprises' managers to participate in the District. Standard operating procedures based on the Office's Minimum Service Standards are used to implement the development program for the village-owned enterprise. The Minimum Service Standard is a benchmark used to provide good service, and as a guide for evaluating the quality of services, the Office has provided. Therefore, the program's implementation is directed and achieves its objectives, and the development process must be streamlined. Thus it does not fall apart during the execution of development activities. The Community Economic Empowerment Sector's program for the development of village-owned enterprises entails the following steps: The Community Economic Empowerment Sector executes four stages of the development program's implementation, as depicted in figure 4. The stages of implementing this development of village-owned enterprises are described: First, it is necessary to examine the expansion of existing village-owned enterprises. Second, the Community Economic Empowerment Sector plans and composes letters for development purposes. In this instance, the Community Economic Empowerment Sector creates classification tools for the current year's level of development of village-owned enterprises. Third, carrying out development, the Community Economic Empowerment Sector carries out the implementation of this development, which comes directly to the Village or is carried out in the District, and invites village-owned enterprises to the meeting building in the Service. Fourthly, the Community Economic Empowerment Sector generates an accountability report on all completed activities for budget utilization and evaluation purposes for future development. This planning is accomplished by examining the still-operating village-owned enterprises, determining which development activities will be carried out by the Community Economic Empowerment Divisions, and forming a team. In its implementation, the team consists of a minimum of two members. The size of the team is proportional to the number of villages to be fostered. Its implementation is directly monitored and supervised by superiors. The supervisor, in this case, is the Division Head of Community Economic Empowerment. The Community Economic Empowerment Sector will report the completed activities once the development has been completed. This program's development procedure is executed each month irregularly. Nonetheless, the Office has formulated a specific schedule. In addition to this program, the division has other programs. As village markets, tourist villages, and activity integration between the Indonesian national army and the regional government to expedite development breakthroughs in rural areas. Furthermore, a collaboration between the regional government and the Indonesian national army to improve welfare via various physical and non-physical regional development programs.
have successfully developed them. Many village-owned enterprises are formed, but their maintenance or management must be addressed. Some village-owned enterprises are operating or forming, but their business units have not begun operations. Therefore, the initial objective will be to establish village-owned enterprises capable of managing their potential to improve the Village's economy to benefit the community. However, Sumedang Regency has not implemented this. Many village-owned enterprises have not contributed to the community's well-being. Due to several factors, which include the following: 1) Inadequate human resources, 2) The coordination between the village government, village-owned enterprises managers, and the community is still lacking, 3) village-owned enterprises supervisors who do not play a role, 3) non-routine implementation of development programs, 4) Managers have difficulty conducting business analysis and mapping village potential, and 5) insufficient capital to develop village-owned enterprises. The output of this development program indicates that village-owned enterprises have been established in every Village in the Sumedang Regency. Due to the inadequacy of village-owned enterprise managers' business management skills. The community has not felt the positive effects of village-owned enterprises. It is because of a lack of coordination between the Village Government, enterprise managers, and the community. Due to their lack of training and business experience, the directors lacked leadership, management, and governance knowledge. The existing village-owned enterprises were not founded in the spirit of local emancipation. This resulted in a lack of cooperation in the Village, and the absence of support from the village government rendered them unmanageable (Mayu, 2016).

IV. Outcome Indicator
This village-owned enterprises development program is being implemented to assist villages in managing their potential and improving community welfare; thus, the Village can become the economic hub. The accomplishment of this development program is the establishment of village-owned enterprises in all Sumedang Regency villages. Community and Village Empowerment Office tried to assist the village administration in establishing village-owned enterprises. They assisted with the feasibility and business analysis of village-owned enterprises to help villages increase their budget income and, ideally, improve community welfare. The medium-term objective has been attained regarding the Village's expected formation of a village-owned enterprise. However, it is common knowledge that there are villages where the business unit for village-owned enterprises does not operate. As a result, the objective to enhance the community's welfare and serve as a forum for the Village's economy has not been realized. This resulted in the formation of village-owned enterprises that strictly adhered to existing regulations and lacked careful planning. Due to the difficulty of mapping village potential, the average village-owned enterprise manager does not conduct a business analysis to determine the potential of their Village. In addition, some individuals are still unaware of village-owned enterprises' advantages, effects, and influences. In this instance, the community recognizes that village-owned enterprises already exist but cannot provide welfare or improve the village economy. Therefore, support from the village government and the surrounding community significantly impacts the management of villageowned enterprises. The majority of Sumedang Regency communities are still not actively involved in the management of villageowned enterprises. Consequently, society has remained unchanged. Coordination among the village government, village-owned enterprise managers, and the community are essential. In the majority of Sumedang Regency's village-owned enterprises, this coordination has not been successful on average. In Sumedang Regency, most village-owned enterprise managers are appointed through the political content of village head elections. It is logically that most village-owned enterprises in the Sumedang Regency lack adequate human resources. Due to the dense political atmosphere in Sumedang Regency, village-owned companies are unmanaged and choose business units to operate arbitrarily. The village head appoints the manager of the village-owned enterprise. Then, village-owned enterprises that served the community and the pursuit of profit were established. It is essential to consider society's needs. However, most village-owned enterprises have not considered the community's requirements. Managers of village-owned enterprises have a more significant influence over the growth-supporting variables. Nonetheless, community involvement is essential for the success of village-owned enterprises. Community participation in implementing village-owned enterprises can provide suggestions and input for program development (Kuria & Rodiyah, 2022, p. 1). Regarding outcome indicators, the community has not benefited from the villageowned enterprises, as the plan for the village-owned business was developed with little community input. In the village-owned enterprise's program, the sense of community ownership is weak.