Notes Economy Lectures
Notes Economy Lectures
Notes Economy Lectures
Nindyo Cahyo Kresnanto1, Rini Raharti2, Retno Lantarsih3, Raihan Iqbal Ramadhan4
Dinda Novita5
University of Janabadra
E-mail: nindyo_ck@janabadra.ac.id
Abstract: Village Owned Enterprises (BUMDES) is legal entities formed by and for
villages to manage enterprises and engage in various types of business for the
best possible welfare of the village community. According to evaluations,
most BUMDES were assumed to has declined in profit due to COVID-19
pandemic, and more than 45% of BUMDes having difficulties to survive. The
purpose of this research is to investigate the state of BUMDES during and
before the pandemic, this includes the issue of vulnerabilities for support
recovery, as well as strategies on recovery both for the short and medium
term.The research constructed on a literature review followed by initial
investigation. The results of the questionnaire-based survey reflected the state
of BUMDES and were presented in spatial distribution. The data analysis
revealed that the COVID-19 outbreak had no major impact on BUMDES
overall performance. Furthermore, finding based on BUMDES interview data,
more than 75% respondent indicating that the pandemic had no influence on
BUMDES performance. The findings also demonstrate that BUMDES could
be labelld as small firm with great resilience (tangguh) in the presence of
external conditions.
1. Introduction
Village Owned Enterprises (BUMDES) are legal entities established by villages and with
villages to manage businesses, utilize assets, develop investment and productivity, provide
services, and provide other types of businesses for the most excellent welfare of the
community village. The existence of BUMDES has had a positive impact on village
communities and is recognized by various parties as being able to provide new business
opportunities and educators. BUMDES also contribute to the village's original income
opinion/PAD. Moreover, BUMDES also increases people's productivity and reduces
consumption levels, it becomes a village economic institution that can contribute to
improving the local and regional economy within the scope of the national economy and
there are many more benefits from BUMDES businesses.
However, currently, as a result of the COVID-19 pandemic, the performance of most
BUMDES has decreased, and more than 45% of BUM Des are experiencing business
difficulties. The pandemic has impacted internal management and the supply chain
supporting BUMDES. One of them is the tourism sector which has experienced a very
2. Literature Riview
2.1 BUMDES in the Village Economic Framework
2.1.1 BUMDES in Contribution to Village Progress
Village-Owned Enterprises, referred to as BUMDES, are legal entities established by
villages and with villages to manage the business, utilize assets, develop investment and
productivity, provide services, and provide other types of businesses for the most excellent
possible welfare of the village community. The main objectives of establishing BUMDES
are: (1) Improving the village economy; (2) Optimizing village assets so that they are
helpful for village welfare; (3) Increasing community businesses in managing village
economic potential; (4) Developing business cooperation plans between villages and third
parties; (5) Creating market opportunities and networks that support the general needs and
services of citizens; (6) Creating employment opportunities; (7) Improving people's
welfare through improving public services; growth, and equal distribution of the village
economy; and (8) Increasing village community income and original village income.
60000 50199
50000 y = 10500x - 9035 45549
39149
40000 R² = 0,9635
30000
18446
20000 11945
10000 1002
0
2014 2015 2016 2017 2018 2019
There are 11,425 BUMDES and 163 Joint BUMDES (Figure 1) whose names have
been verified by the Ministry of Villages, PDT and Transmigration. Some are still being
established, so more than 17% of villages in Indonesia have BUMDES (a ratio of 66,088
villages in Indonesia). With a growth of 2.57% per year (as depicted in Figure 2), 43% of
their business is running well and can benefit the village. Of the 43% of BUMDES that
have been operating, they generally provide benefits and increase the welfare of the village
community. However, not significantly and have received a positive response from the
community. The existence of BUMDES within the framework of village progress will
make a positive contribution in the form of as a source of village income, meeting
community needs, and developing an independent village.
This concept is called public value. Based on this view of governance and
administration, several things need attention are :
1. Governance: partnerships and responsibilities of each village company, responsible
ministries, umbrella organizations, and regional and local governments.
2. Administration: The entire administrative system, including planning policies and
regulations, budget management, and legal and institutional background.
Meanwhile, from the point of legitimacy/support and operational capacity, several things
must be considered are:
1. Legitimacy/support: Relations with higher authorities, institutional support, credibility
with community business actors and umbrella organizations, and support from partners
and civil society.
2. Operational capacity: organizational output, financial integrity, administrative efficiency
issues, innovation, and learning issues.
The assessment of the resilience of BUMDES with a public value approach is then
compiled in a matrix framework as shown in Figure 5.
3. Research Method
3.1 Research Location Characteristic
The BUMDES, the object of research, is the BUMDES engaged in agriculture in
Indonesia. The distribution of BUMDES based on the number and type of agricultural
businesses can be seen in Figure 6 and Figure 7.
Figure 6 Thematic Map of the Distribution of the Number of Agricultural BUMDES by District
The results of the in-depth review also have similar results to the results of online filled
out by several BUMDES in the agricultural sector. The questionnaire results are mainly
related to the effect of the pandemic on the acquisition of raw materials and products, which
can be seen in Figure 9. BUMDES in the agricultural sector did not experience a significant
influence during the pandemic in terms of obtaining raw materials and their productivity.
This condition indicates that the agricultural sector (food crops) has relatively good resilience
during the pandemic.
25%
25%
75%
75%
(a) (b)
Figure 1 BUMDES Questionnaire Results on Pandemic Resilience
(a) Difficulties in Obtaining Raw Materials (b) BUMDES Productivity
1,5
0,5
0
0 5000 10000 15000 20000 25000 30000 35000 40000
-0,5
Number of COVID Case
Figure 2 Scatter Results Between the Number of COVID Cases Location of BUMDES and GRDP
Growth Based on Type of BUMDES Business
From the plotting results, the number of COVID cases has no correlation to GRDP
growth in the BUMDES business type. This fact is indicated by the R-value of only 0.075,
meaning that the number of cases exposed to COVID is also not correlated with GRDP. It is
close to zero.
5. Conclusion
The results showed that BUMDes engaged in the agricultural sector were not affected by the
COVID-19 pandemic. They were proven by the absence of a decrease in income, BUMDES
productivity or difficulties in supplying raw materials during the Covid-19 pandemic. It is
just that there are constraints in the distribution of processed products from BUMDES due to
social restrictions on a national scale, so product distribution is limited to small regional units
and not can reach distribution between Provinces. The results of the correlation between
COVID cases in the BUMDES district also did not significantly affect GRDP in the
BUMDES sector.
References
Kementerian Sekretaris Negara, Peraturan Pemerintah Republik Indonesia Nomor 11 Tahun
2021 Tentang Badan Usaha Milik Desa. Indonesia, 2021.
S. H. Warsono et al., “Indikator Perkembangan Badan Usaha Milik Desa (Bumdesa),”
Bbplm-Jakarta.Kemendesa.Go.Id, p. 90, 2018, [Online]. Available: https://bbplm-
jakarta.kemendesa.go.id/index.php/publikasi/getdata/indikator_bumdesa.pdf.