The purpose of this study was to evaluate the administrative capabilities and performance of the Tonusu Village-Owned Enterprise (BUMDes) management in facilitating the effective management of village business units. As a crucial element for local economic development, BUMDes is expected to have professional and transparent management. The method used in this study was qualitative through direct observation, in-depth interviews, and document collection during Field Experience Practice (PPL). The findings of this study indicate that BUMDes management does not receive compensation, but still demonstrates quite good performance due to intrinsic motivation driven by moral responsibility and social engagement. On the other hand, several challenges are faced, including administrative deficiencies, limited transportation facilities, a shortage of management personnel, and low community discipline in the food security program. This situation affects the effective management of the chair, tent, and gas rental business unit, which generates an annual turnover of approximately IDR 500 million. This study concludes that the success of BUMDes is influenced not only by local economic potential but also heavily dependent on administrative capabilities, the quality of management performance, and community participation. These findings suggest that the village government should improve management, oversight, and human resource capacity to ensure the effective continuity of BUMDes operations.
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