Economic development and the rural environment: BUMDES development strategy

Department of Governmental Science, Faculty of Social Science and Political Science, Universitas Riau, Indonesia

^* Corresponding author: rury.febrina@lecturer.unri.ac.id

Abstract

The Sustainable Development Goals in Indonesia are not only included in the national development goals but are also integrated with village development, or what are known as Village SDGs. The strategy for developing village-owned enterprises (BUMDesa) is one of the main indicators for achieving the Village SDG goals, namely Villages without poverty and Villages that care for the environment. BUMDesa is a village- owned business entity that functions to optimize village potential in improving community welfare by utilizing all economic potential, economic institutions, and the potential of natural resources and human resources. This study aims to explore rural development through the development strategies of village-owned enterprises in Mandau District and Bengkalis Regency and the factors that hinder the BUMDes development strategy. The method used in this study is a qualitative method with an exploratory type. Data collection techniques through interviews with BUMDes organizational instruments and local government and a literature review The results of this study link the stages in running the BUMDesa business unit (Village BUM Planning, Village BUM observation, arrangement, and selection, asset maintenance, and reporting of business results) with the principles of professional, open, and responsible, participatory, priority Village management. local and sustainable resources. The development of BUMDesa has not been optimal as seen from the presence of problems, namely the organizational structure of BUMDesa as well as work procedures and relationships between BUMDesa organizational devices, constraints in carrying out duties and authorities, and management and development of technology-based business units. The implementation of deliberative democracy has not been optimal in making strategic policies related to BUMDesa, as well as in fostering, supervising, and developing BUMDesa.