<![CDATA[Abstract This research aims to analyze the role of Lohdjinawi Village-Owned Enterprises (BUMDes) in improving the welfare of the people of Gesikan Village, Pakel District, Tulungagung Regency. In facing the problem of low economic welfare in rural areas, BUMDes acts as a tool to optimally manage local economic potential. This research uses a qualitative approach with a descriptive design, with the research subjects being BUMDes Lohdjinawi and the village government. Data was collected through in-depth interviews, observation, document analysis, and questionnaires to the community. Data analysis techniques included reduction, presentation, and conclusion drawing, with data validity maintained through persistence and triangulation. The results showed that BUMDes Lohdjinawi succeeded in improving community welfare through economic programs such as business loans, skills training, and micro-enterprise development, which resulted in job creation and increased income. Village government support strengthens BUMDes operations and creates synergies that enhance community participation. The conclusion of this study is that BUMDes, with the support of the village government, play an important role in local economic empowerment and can serve as a model for other villages in developing their economic potential. Abstrak Penelitian ini bertujuan untuk menganalisis peran Badan Usaha Milik Desa (BUMDes) Lohdjinawi dalam meningkatkan kesejahteraan masyarakat Desa Gesikan, Kecamatan Pakel, Kabupaten Tulungagung. Dalam menghadapi permasalahan rendahnya kesejahteraan ekonomi di pedesaan, BUMDes berperan sebagai alat untuk mengelola potensi ekonomi lokal secara optimal. Penelitian ini menggunakan pendekatan kualitatif dengan desain deskriptif, dengan subjek penelitian BUMDes Lohdjinawi dan pemerintah desa. Data dikumpulkan melalui wawancara mendalam, observasi, analisis dokumen, dan angket kepada masyarakat. Teknik analisis data meliputi reduksi, penyajian, dan penarikan kesimpulan, dengan validitas data dijaga melalui ketekunan dan triangulasi. Hasil penelitian menunjukkan bahwa BUMDes Lohdjinawi berhasil meningkatkan kesejahteraan masyarakat melalui program ekonomi seperti pemberian kredit usaha, pelatihan keterampilan, dan pengembangan usaha mikro, yang berdampak pada penciptaan lapangan kerja dan peningkatan pendapatan. Dukungan pemerintah desa memperkuat operasional BUMDes dan menciptakan sinergi yang meningkatkan partisipasi masyarakat. Kesimpulan penelitian ini adalah BUMDes, dengan dukungan pemerintah desa, berperan penting dalam pemberdayaan ekonomi lokal dan dapat menjadi model bagi desa lain dalam mengembangkan potensi ekonomi mereka.]]>
