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CAPACITY BUILDING FOR THE DEVELOPMENT OF VILLAGE-OWNED ENTERPRISES: CASE STUDIES ON RURAL-URBAN ASSETS IN BOJONEGORO, INDONESIA Firre An Suprapto; Muhammad Farid Ma'ruf; Galih Wahyu Pradana; Revienda Anita Fitrie; Melda Fadiyah Hidayat; M. Noer Falaq Al Amin
International Journal of Social Science, Educational, Economics, Agriculture Research and Technology (IJSET) Vol. 4 No. 12 (2025): NOVEMBER
Publisher : RADJA PUBLIKA

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Abstract

Law Number 6 of 2014 gives villages the authority to manage their resources and assets to support sustainable development. Authority to manage village resources and assets is one form of institutional role of Village-Owned Enterprises (BUMDes). The challenges in managing village assets include low village government capacity, community participation, and less than optimal monitoring and evaluation systems. This research uses a quantitative approach accompanied by qualitative in-depth research to evaluate the influence of village asset management on the development of village institutional capacity. The research results show that the quality of BUMDes governance and the role of village institutions significantly influence BUMDes development. Micro and small industries also make an important contribution in strengthening village institutional capacity. Recommendations proposed by researchers include increasing the competency and expertise of BUMDes actors, adequate policy support regarding the management of village assets by BUMDes, establishing sustainable strategic partnerships involving micro industry players and the private sector, and increasing promotion and market access for BUMDes products.