This study aims to explore the role of Village-Owned Enterprises (BUMDes) in enhancing the rural economy, with a case study in Mattirowalie Village, Mare Subdistrict, Bone Regency. This village is recognized as one of the clove-producing centers in South Sulawesi, marked by the establishment of a clove oil distillation factory inaugurated by the local government. Using a descriptive qualitative approach, data were collected through in-depth interviews, field observations, and document analysis. The findings indicate that BUMDes plays a vital role in managing local potential through agribusiness and service-based business units, while also encouraging community participation in local economic development. The presence of BUMDes has contributed to increased household income and strengthened village self-reliance. However, the implementation of BUMDes also faces several challenges, such as limited human resources, market access, and managerial capacity. The study recommends strengthening BUMDes institutional capacity, providing training tailored to local needs, and ensuring supportive policies from local governments. These findings confirm that BUMDes can serve as a strategic instrument in promoting inclusive and sustainable rural economic development.
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