Optimizing Village Wealth Through the Transition to BUMDes in Indonesia

Moch Rifqi Tamaputra (Program Studi Ilmu Hukum, Universitas Muhammadiyah Sidoarjo)
Rifqi Ridlo Phahlevy (Dosen Program Studi Ilmu Hukum, Universitas Muhammadiyah Sidoarjo)

Indonesian Journal of Cultural and Community Development
Vol 15 No 2 (2024): June

This research examines the regulation of transitioning village assets to Village-Owned Enterprises (BUMDes) based on Village Law, highlighting shifts in dispute resolution methods. Using a normative method with statutory and historical approaches, the study identifies challenges in optimizing village head authority and effective supervision by regional heads. Key findings show the transition process involves initiation and agreements between BUMDes and village government, with tailored dispute resolution methods including mediation and litigation. Effective regulations and collaboration between officials and asset managers can enhance BUMDes' self-sufficiency, benefiting local economies and village welfare while ensuring transparency and community participation.Highlight: Transition Process: Village assets to BUMDes via initiation and agreements. Dispute Resolution: Methods include mediation, village discussions, and litigation. Regulatory Challenges: Enhance village head authority and regional supervision. Keywoard: Village assets, BUMDes, Village Law, Dispute resolution, Normative method