<![CDATA[Rural economic development requires the effective management of local potential to create added value and improve community welfare. Village-Owned Enterprises (BUMDes) play a strategic role as rural economic institutions that can connect local resources with community economic activities. This study aims to analyze the role of BUMDes in rural economic development based on sago potential and to identify factors that support its development. The study employs a library research method using a qualitative descriptive approach through thematic analysis of various relevant sources. The findings indicate that BUMDes have the potential to serve as an instrument for economic development through institutional strengthening, community empowerment and participation, increased added value, product diversification, innovation, partnership development, and expanded market access. Sago development should be directed not only toward the production of raw materials but also toward the processing and marketing of products with higher economic value. The successful development of sago-based BUMDes requires support from village governments, transparent and accountable governance, enhanced human resource capacity, and sustainable collaboration among stakeholders.]]>
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