The Role of Village-Owned Enterprises (BUMDes) in Improving the Community Economy (Case Study in Botumoputi Village, Tibawa District, Gorontalo Regency)

Abstract

Village-Owned Enterprises (BUMDes) are expected to become strategic institutions for strengthening rural economies through the utilization of local resources. However, many BUMDes in Indonesia have not yet operated optimally due to governance limitations, weak community participation, and inadequate business development. This study aims to analyze the role of BUMDes in improving the local economy and to identify the factors influencing its effectiveness in Botumoputi Village, Tibawa District, Gorontalo Regency. The research employed a qualitative descriptive approach. Data were collected through in-depth interviews with village officials, BUMDes managers, and community members, supported by observation and document analysis. The findings reveal that BUMDes Botumoputi contributes significantly to improving the community's economy by providing affordable agricultural production inputs, supporting the marketing of agricultural products, creating employment opportunities, and contributing to Village Original Revenue (PADes). The effectiveness of BUMDes is influenced by village government support, local resource potential, transparent and accountable management, community participation, and the managerial capacity of BUMDes administrators. Nevertheless, dependence on the agricultural sector exposes BUMDes to production risks, particularly crop failure, which may affect business sustainability. This study highlights that strengthening institutional governance and diversifying business units are essential strategies for enhancing the sustainability of BUMDes as a driver of inclusive and independent rural economic development.