Analysis of the Economic Potential of Mutih Wetan Village and How to Develop It Through Village-Owned Enterprises (BUMDes)

Abstract

BUMDes, or village-owned enterprise, is a business entity that is majority or wholly owned by the village and acquired through direct investment of separated village assets. Its purpose is to manage assets, provide services, and develop other businesses to improve the welfare of the village community. As a new economic force in rural areas, BumDes leverages the role of the village government and the active participation of local communities to optimize regional economic potential for the improvement of the social and economic welfare of villagers. This research explores the economic potential of villages and their development strategies through village-owned enterprises (BUMDes). Using a qualitative descriptive approach, we investigated Mutih Wetan Village to assess its economic potential, covering natural resources, local creative industries, local expertise and traditions, as well as supporting factors and barriers. The results of the analysis show that the village has great potential in agriculture, animal husbandry, fish farming, and local creative industries. However, there are challenges, such as limited capital and market access, that need to be overcome. A development strategy through BUMDes is proposed as a solution to advance the village economy. Concrete steps include the establishment of flagship products or services, financial planning, human resource development, and marketing strategies. It is expected that the implementation of this strategy will help improve the welfare of the village community and strengthen the competitiveness of the local economy. The study's findings demonstrate the village's potential for BUMDes management, which is anticipated to result in changes in the social and economic spheres.