The development of village economic institutions through the establishment of Koperasi Desa/Kelurahan Merah Putih (KDKMP) and the strengthening of Village-Owned Enterprises (BUM Desa) creates new dynamics in their relationship with micro-business actors that have previously operated in village economic activities. These three actors may operate within the same market, creating potential interactions in the form of competition, partnership, and supply-chain relationships. This research aims to analyze the legal construction governing the business activities of KDKMP, BUM Desa, and micro-business actors within the village economic ecosystem and to formulate an ideal legal construction that balances business competition, partnership, and micro-business empowerment. This research employs normative legal research using statutory, conceptual, and analytical approaches. The findings indicate that KDKMP, BUM Desa, and micro-business actors have different legal bases, institutional positions, and functions, but may interact as competitors, partners, or actors within the same supply chain. Therefore, an ideal legal construction should be developed through the concept of a village economic competition-partnership ecosystem based on fair business opportunities, recognition of local economic structures, healthy business competition, and equal and empowering partnerships. This construction is expected to create equal opportunities, prevent unfair business competition, expand market access, and increase economic benefits for village communities.
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