The Role of Village Government in Community Economic Empowerment Through Village-Owned Enterprises (BUMDes)

Abstract

Rural economic empowerment requires an active role from the village government in optimizing local potential through the institution known as the Village-Owned Enterprise (BUMDes). This study aims to analyze the role of the Sukamanah Village Government, Rangkasbitung District, in empowering the local economy through its BUMDes, while identifying the factors that support or hinder its operations. A descriptive qualitative research method was employed, utilizing data collection techniques such as in-depth interviews, direct observation, and document analysis. Informants including village government officials, BUMDes management, and local MSME operators were selected via purposive sampling. The findings indicate that the village government has fulfilled its role comprehensively: acting as a regulator (drafting village regulations), a facilitator (providing capital via the Village Fund and infrastructure), and a supervisor (overseeing quarterly accountability). The presence of the BUMDes has successfully stimulated real-sector economic activity and created local employment. Nevertheless, the effectiveness of this empowerment remains suboptimal due to several constraints, including limited human resource capacity among management who tend to maintain an administrative-only mindset weak accounting practices, a lack of product innovation, and a marketing reach that remains limited to the local, conventional level. The study concludes that while the village government’s role is structurally well-aligned, governance reform is necessary specifically through intensive management training and the acceleration of digital marketing to enable the BUMDes to achieve sustainable, independent growth.