THE IMPLEMENTATION OF GOOD GOVERNANCE ON VILLAGE-OWNED ENTERPRISES OR BADAN USAHA MILIK DESA (BUMDes) THROUGH VILLAGE GOVERNMENT IN INDONESIA

Triono Triono; Martin  Purnama Chandra

Triono Triono International Relations Department, Faculty of Social and Political Sciences, Megou Pak Tulang Bawang University, Tulang Bawang Regency - Lampung
Martin Purnama Chandra Business Administration Department, Faculty of Social and Political Sciences, Sangga Buana University, Bandung City - West Java

Keywords: bumdes; good governance; government; local politic; village

Abstract

The majority of villages in Indonesia face a number of traditional problems which require a government that is able to create synergy between systems, programs, and normative aspects. The Village Government significantly increases the performance of Village-Owned Businesses, or Badan Usaha Milik Desa (BUMDes), through the application of Good Governance principles in order to stimulate new business growth and economic transformation. The purpose of this research is to examine the relationship between good governance and BUMDes in order to improve community welfare. The research applies a qualitative analysis, in which the researcher is a participant- observer. The success of BUMDes since its implementation in 2004 shows that Good Governance is an effective tool. It focuses on aspects of accountability and community participation. President Jokowi directs BUMDes as an Organization Oriented to Economic Production to cooperate with State-Owned Enterprises or Badan Usaha Milik Negara (BUMN) and the private sector in every economic activity, as well as to consolidate business formation according to community needs, especially the distribution of value-added products to reach a wider market share. That way, all elements of the village community actively contribute to building through activities that bring profit. The presence of the village government as an embodiment of local politics is optimized for its role in the management of BUMDes through collaboration with others as a form of Good Governance. This research found that the principles of Good Governance are important to be applied in the management of BUMDes so that the economic growth of the Village can be transformed into superior through Good Governance.