Strengthening Village-Owned Enterprise Governance as a Strategy for Village Community Empowerment in South Sumatra

Natalia Sihombing S.Pd Rabu, Agustus 05, 2026
Illustration by AI
FORMOSA NEWS

In July 2026, a research team from Stisipol Candradimuka and Instituto Superior Cristal Dili consisting of Lisdiana, Sutinah, Ahmad Roziqin, Selviana Veronika Moruk, and Citra Mayang Sari published comprehensive research on strengthening the governance of Village-Owned Enterprises (BUMDes) under the South Sumatra Provincial Community and Village Empowerment Agency. This research plays a vital role in ensuring that fiscal fund allocations and local economic potential are managed transparently and accountably to foster rural economic independence.

Dynamics and Challenges of Village Management

Villages currently hold full control as subjects of development in the era of decentralization through the disbursement of Village Funds. However, field operations of BUMDes frequently encounter classic obstacles, ranging from uneven manager competencies, capital limitations, minimal business innovation, to suboptimal coordination between government levels. Consequently, some BUMDes develop rapidly into productive economic drivers, while others experience stagnation or cease operations.

Field Research Approach

To thoroughly examine these issues, the researchers applied a descriptive qualitative method that explored data in depth through direct interviews with stakeholders, field observations, and official document reviews. Data analysis focused on policy communication, resource availability, implementer commitment, and bureaucratic structure to assess the effectiveness of local government guidance.

Main Research Findings

  • Policy communication between the relevant agency and village managers remains dominated by conventional face-to-face meetings without optimizing digital technology.
  • Most BUMDes managers face real barriers in the form of limited skills in administration, business management, and professional financial report preparation.
  • Institutionally, many BUMDes units operate with simple structures without formal Standard Operating Procedures (SOPs) and have not completed legal entity legalization.
  • The commitment of regional and village governments is categorized as positive, but it has yet to be fully balanced by creativity in developing business units adaptable to local potential characteristics.

Broad Implications and Impacts on Society

The results of this research provide a real contribution to improving public service quality, formulating regional development policies, and strengthening the people's economic sector. The success of BUMDes governance directly impacts the creation of new jobs, an increase in Village Original Income (PADes), and the sustainable welfare of rural communities.

As emphasized by the researchers from Stisipol Candradimuka and Instituto Superior Cristal Dili, "Strengthening BUMDes governance requires sustainable synergy between the provincial government, district/city governments, village governments, and managers through institutional capacity building and the development of innovations based on local potential".

Brief Author Profiles

  • Lisdiana, M.A.P. – Lecturer and Researcher in Public Administration Science, Stisipol Candradimuka, Indonesia.
  • Sutinah, M.A.P. – Lecturer and Researcher in Public Administration Science, Stisipol Candradimuka, Indonesia.
  • Ahmad Roziqin, M.A.P. – Lecturer and Researcher in Public Policy and Governance, Stisipol Candradimuka, Indonesia.
  • Selviana Veronika Moruk – Academic and Researcher at Instituto Superior Cristal Dili, Timor Leste.
  • Citra Mayang Sari – Researcher in the Master of Public Administration Program, Stisipol Candradimuka, Indonesia.

Research Sources:

Natalia Sihombing S.Pd

Diposting oleh Natalia Sihombing S.Pd

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