Village-owned enterprise governance and rural economic development: Evidence from Sumber Rejo, Indonesia
DOI:
https://doi.org/10.52300/jepp.v6i1.27757Keywords:
community participation, institutional accountability, local economic empowerment, rural welfare, transparencyAbstract
Economic development requires village institutions capable of transforming local resources into sustainable businesses and distributing their benefits equitably. This study analyzes the governance of Sumber Rejo Sejahtera Village-Owned Enterprise (BUMDes) and examines how its practices support or constrain community welfare in Sumber Rejo Village, Pematang Karau District, East Barito Regency. The study was motivated by the gap between the formal establishment of BUMDes and its limited capacity to generate inclusive economic benefits. A qualitative descriptive case-study design was employed. Data were collected through interviews with village officials, BUMDes managers, and community members, supported by direct observation and document analysis. The data were analyzed interactively through condensation, display, and conclusion drawing, while credibility was strengthened through source and technique triangulation. The findings show that BUMDes has supported agricultural activities and microenterprises, but its contribution remains limited and uneven. Financial and operational information is not disclosed regularly, accountability is oriented primarily toward administrative reporting, and community participation is concentrated at the implementation stage rather than planning, decision-making, supervision, and evaluation. Business diversification, capital, managerial competence, infrastructure, information dissemination, and market access also remain limited. The study recommends regular publication of financial and performance information, stronger supervision, inclusive community forums, managerial capacity building, and business development based on local potential and market feasibility. This study contributes an integrated explanation of how transparency, accountability, and participation shape the institutional conditions for rural welfare. Its findings are context-specific because the research covers one BUMDes and does not quantitatively measure changes in household income or employment.
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