This research aims to comprehensively analyze the challenges and opportunities of BUMDes Tamara from a Syariah perspective in its efforts to improve the local economy in Desa Tamansari. The method used is qualitative research, with primary data collected through interviews and observations with the management of BUMDes, village officials, and the community, supplemented by secondary data. The study findings indicate that the main challenge for BUMDes Tamara is the use of an interest-based loan system (riba), which contradicts the principles of syariah. However, BUMDes has implemented other syariah principles such as honest business ethics, deliberation (musyawarah), social responsibility, and economic empowerment through business units applying the maqashid al-syariah approach. The opportunities include the potential of natural resources, human resources, local market needs, and access to syariah financing such as mudharabah, musyarakah, and murabahah, enabling optimal village business development in accordance with syariah principles. In conclusion, BUMDes Tamara contributes positively to local economic empowerment and business sustainability, but further innovation and education are needed to develop interest-free financing products to fully comply with syariah and foster halal and just village enterprise development.
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