Sinergies of Village-Owned Enterprise (BUMDES) and Investor

Synergies of Village-Owned Enterprise (BUMDES) and Investors in Local Economy Development

The chosen policy for the villages in advanced and independent category, Minister Eko Sandjojo will found and strengthen village-owned enterprises (BUMDES) as a small holding. 

The Small Holding can have some kind of businesses, such as Credit Unions, Post-harvest season Enterprises, Creative Economy, Commerce of Agricultural Production Tools, and services units. According to the type ofthe business, It is very possible for BUMDES to do a joint venture with the private sector (Corporate), State-Owned Enterprises (BUMN) and Government Bank. 

Village as mandate of law UU No.6/2014 comes as a instrument to grow of the local economy. Existence of BUMDES at the village level, can accelerate the business units and services unit for the village collective economy. Currently, about 12,000 BUMDES have been founded through Indonesia. The roles and commitments of the Governor, the Major of Kabupaten and Head of Village (Kades, Kuwu, or Demang) are very important for these. Since they know the potential of the type of business and the aspirations of the community. 

BUMDES can be founded based on existing natural resources and topography of villages, such as Agriculture, Tourism, Marine, Small and Medium Enterprise and the Creative Economy. The business Scales of BUMDES are Serving, Renting, Trading, Banking, Holding, and Brokering services. BUMDES consists of incorporated and non-incorporated businesses. 

To support these, Ministry of Village, Development of Disadvantaged Regions, and Transmigration will do actively research and studies about founding of the BUMDES from various aspects, such as market demand, production processes and distribution chain of the rural area.