Local Economic Development Through Village-Owned Enterprises
Village-Owned Enterprises (Badan Usaha Milik Desa or BUMDes) have become one of Indonesia's primary policy instruments for promoting rural economic independence. Established under national regulations, BUMDes are designed to utilize local resources, create employment opportunities, increase village revenue, and improve community welfare.
How the Research Was Conducted
The study used a qualitative descriptive phenomenological approach to understand how the fisheries business operates and how it affects the livelihoods of community members.
Researchers collected information through direct observation, interviews with BUMDes managers, fishermen, village officials, and pajeko crew members, as well as documentation related to village operations. The collected information was analyzed using systematic qualitative analysis to identify recurring themes regarding effectiveness, challenges, and community participation.
Rather than relying only on financial statistics, the research examined everyday experiences of the people directly involved in operating the fisheries business.
Fisheries Business Shows Continuous Growth
Financial records presented in the study reveal a consistent upward trend in both fisheries production and BUMDes income.
Between 2022 and 2025:
- Fisheries catch value increased from Rp64.75 million to Rp110.49 million.
- BUMDes revenue grew from Rp9.71 million to Rp16.57 million.
- Overall growth reached approximately 70.6% during the four-year period.
These figures indicate that the fisheries unit has become an increasingly important contributor to both fishermen's earnings and village-generated income.
Community Participation Drives Success
One of the study's strongest findings is the importance of community involvement.
BUMDes actively encourages villagers who have the willingness and capability to participate in fisheries activities. The organization promotes cooperation among managers, boat owners, raft owners, captains, and crew members while maintaining transparent profit-sharing arrangements.
According to the researchers, this inclusive management approach strengthens trust among stakeholders and creates a stronger sense of community ownership over the business.
Challenges Still Exist
Although the fisheries business has generated positive economic results, the study identifies several ongoing challenges that limit its performance.
Among the most significant obstacles are:
- Unpredictable weather and large ocean waves.
- Seasonal fluctuations in fish availability.
- Administrative difficulties in obtaining fishing permits.
- Limited financial capacity for vessel maintenance.
- Declining motivation among some crew members during poor fishing seasons.
These issues illustrate that successful rural enterprises depend not only on local resources but also on effective management, government support, and long-term planning.
Practical Strategies Improve Business Sustainability
The research also documents several strategies adopted by BUMDes and community members to maintain business operations.
These include:
- Building trust through transparent and fair revenue sharing.
- Strengthening cooperation among BUMDes management, fishermen, raft owners, and village government.
- Selling fish through official Fish Auction Centers (TPI) to secure competitive market prices.
- Conducting regular maintenance on fishing vessels and equipment.
- Encouraging continuous community participation in business operations.
Together, these strategies help improve operational efficiency while supporting long-term sustainability of the fisheries enterprise.
Positive Impact on Rural Welfare
Interviews with fishermen indicate that the pajeko business has significantly improved household income.
Several participants reported that earnings from fishing have been sufficient to meet daily living expenses while also allowing reinvestment into business improvements, including repairing vessels and purchasing new fishing nets.
The business has also reduced reliance on outside labor because most crew members come directly from Tunas Jaya Village. This means that more economic benefits remain within the local community.
Authors Emphasize Local Collaboration
The researchers conclude that the effectiveness of the Tunas Jaya BUMDes cannot be explained solely by financial growth.
As Fathul Khair and Muhammad Jihad Firman of IAIN Sultan Amai Gorontalo explain through their findings, the fisheries enterprise succeeds because it combines local natural resources with strong community participation, transparent governance, and cooperation among village institutions. This integrated approach enables the pajeko business to empower local fishermen while strengthening the village economy.
Their findings suggest that similar community-based fisheries managed through Village-Owned Enterprises could become a practical model for other coastal villages across Indonesia seeking sustainable economic development.
Why This Research Matters
The study offers valuable insights for multiple stakeholders.
For policymakers, it demonstrates how Village-Owned Enterprises can support national goals of rural economic independence.
For village governments, it provides practical examples of participatory management and transparent governance.
For coastal communities, it shows that local collaboration, proper resource management, and community trust can significantly improve livelihoods.
For researchers, the findings contribute additional evidence supporting the role of community-owned enterprises in sustainable rural development.
As Indonesia continues to strengthen village economies, experiences from Tunas Jaya Village illustrate how local innovation and community participation can transform natural resources into lasting economic opportunities.
Author Profile
Fathul Khair, M.A. is a lecturer and researcher at IAIN Sultan Amai Gorontalo whose academic work focuses on Islamic economics, rural development, community empowerment, and village economic institutions.
Muhammad Jihad Firman is a researcher affiliated with IAIN Sultan Amai Gorontalo, with research interests in rural economic development, public administration, and community-based enterprise management.
Source
Article Title: Efforts to Increase Community Income through Village-Owned Enterprises (BUMDes) in Tunas Jaya Village, Bone Bolango Regency
Journal: Formosa Journal of Business and Economic Statistics (FJBES)
Publication Year: 2026
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