Empowerment of Village Owned Enterprises in Business Unit Management in Bangli Regency

Abstract

Village-Owned Enterprise (BUMDES) is formed by the Village Government under Village Regulations to utilize all economic potential, institutions, as well as potential natural and human resources in order to improve the welfare of Village community. The problems studied in this research are related to the implementation of business unit management at Village -Owned Enterprises in Bangli Regency and efforts to empower it in Bangli Regency. This research is conducted to examine and analyze the implementation of the business unit management of Village BUM and efforts to empower Village BUM in Bangli Regency. This research is an empirical legal research using data collection techniques of observation, document studies, and interviews. The results of the research show that of the various types of Village BUM businesses, only savings and loan businesses are running effectively. Types of business that have not been running effectively/optimally are caused by several factors, namely limited capital, skillsskills of Human Resources (HR) are not yet in accordance with the business unit being managed, and determination of business units that are not accompanied by an in-depth analysis of village potential. A total of 22 (twenty-two) Village BUM encountered obstacles in the legal entity process due to problems in financial accountability report, the organizational structure of the Village BUM was not in accordance with regulations and was not equipped with personnel and filling Ledger. Efforts to empower Village BUM in Bangli Regency are carried out through fostering and developing Village BUM, by exploring and analyzing village potential, increasing human resource capacity in the form of financial management training, increasing capital through cooperation/business partners with other parties, and intensifying legal status of Village BUM.