State and Private Companies Asked to Involve BUMDes When Carrying Out Village Activities

State and private companies operating in villages are asked to include BUMDes so that the village economy moves faster.

KEMENDES PDTT

Vice President Ma'ruf Amin, accompanied by the Minister of Villages, Disadvantaged Regions, and Transmigration Abdul Halim Iskandar, as well as the Chairman of the Indonesian Social Sustainability Forum Sudarmanto, presented awards to the winners of the CSR and Sustainable Village Development Awards 2024 in Jakarta on Tuesday (7/5/2024).

JAKARTA, KOMPAS - Village-owned enterprises or BUMDes are considered to be able to accelerate rural growth. Rural communities can also become more empowered with the presence of BUMDes. However, what needs to be done is to continuously push for the development of the human resource capabilities of these BUMDes.

State-owned enterprises (BUMN) and private companies are also called upon to continue their commitment to their social responsibility programs and support sustainable villages. Corporate social responsibility (CSR) must also be targeted and beneficial to rural communities. The hope is that inclusive and environmentally friendly economic development in villages can be realized.

"I request that state and private companies operating in rural areas include village-owned enterprises (BUMDes) and joint BUMDes in their business activities, so that the rural economy can progress faster," said Vice President Ma'ruf Amin at the award ceremony for the CSR program of state-owned and private companies and Sustainable Village Development Awards 2024 in Jakarta on Tuesday (7/5/2024).

Present on this occasion were, among others, the Minister of Villages, Development of Disadvantaged Regions and Transmigration Abdul Halim Iskandar as well as the General Chair of the Indonesian Social Sustainability Forum (ISSF) Sudarmanto.

Also read: BUMDes and the Old Village Culture that Never Changes

KOMPAS/NINA SUSILO

Vice President Ma'ruf Amin has urged for the quality of human resources in villages to be continuously strengthened in the presentation of the CSR and Sustainable Village Development Awards 2024 in Jakarta on Tuesday (7/5/2024).

Moving forward, according to the Vice President, the number of village-owned enterprises (BUMDes) must be increased. The capacity and quality of human resources in the villages also need to be strengthened. So far, out of the 83,971 villages in Indonesia, there are already 19,772 certified village-owned enterprises (BUMDes) and joint BUMDes.

Also read: BUMDes Play a Role in Encouraging Tourism Village Development

Village-owned enterprises (BUMDes) also need to continue innovating to create businesses that optimize community empowerment and create sustainable employment. Communities in villages must also be able to forge themselves to be more superior, increasingly creative, innovative, and adaptive to the dynamics of change to contribute to the nation's development.

I am requesting state-owned and private companies operating in villages to allow the participation of Village-Owned Enterprises (BUMDes) and Joint BUMDes in their business activities, so that the village economy can advance more quickly.

New entity

Abdul Halim stated that after the 2023 Job Creation Law, BUMDes became a new legal entity in Indonesia. Therefore, BUMDes now consists of its own entity at the village level, BUMDes Bersama which embodies economic cooperation between villages, and BUMDes Bersama with Village Financial Institutions (LKD).

Also read: Trillions of Rupiah in Ex-PNPM Funds Transferred to BUMDes

Since November 2021, a BUMDes legal entity certificate has been issued. "As of May 6, legal entity certificates for 18,222 BUMDes, 267 BUMDes Bersama, and 1,283 BUM Desa Bersama LKD have been issued. "From the start, BUM Desa has been a public legal entity so it is best suited to manage goods, services and public finances for the benefit of village residents," said Halim.

KOMPAS/NINA SUSILO

Minister of Village, Disadvantaged Region Development, and Transmigration, Abdul Halim Iskandar, presented the potential of BUMDes at the CSR and Sustainable Village Development Awards 2024 event in Jakarta on Tuesday (7/5/2024).

Local economy continues to thrive. In 2023, as many as 10,886 village governments invested in BUMDes with a total value of Rp 1.16 trillion or an average of Rp 44.23 million per village. Since it comes from Village Revenue and Expenditure (APBDes), this fresh fund does not incur any interest.

Also read: 2023 BUMDes Resolution

From this investment, at the end of the year, Village-Owned Enterprises (BUMDes) distribute a portion of the profits to the Village Original Revenue (PADes) through APBDes. The amount reached Rp 162.99 billion across 10,886 villages or an average of Rp 14.97 million per village.

From BUMDes, according to Halim, the village government will start reaping the benefits of BUMDes starting at least in the fourth year.

Since its inception, BUMDes has been a public legal entity that is best suited to manage public goods, services, and finances for the welfare of village residents.

KOMPAS/ZULKARNAINI

The atmosphere of Pantai Panjang, which is managed by the Village-Owned Enterprise (BUMDes) of Pulau Baguk, Kepulauan Banyak District, Aceh Singkil Regency, Aceh, on Tuesday (4/7/2023), has become one of the favorite tourist locations.

Welfare instrument

According to Halim, BUMDes is an important instrument to improve the welfare of rural citizens. This is not only due to the amount of revenue and employment opportunities it generates, but also the role of BUMDes in managing impoverished groups.

In 2023, the revenue of Village-Owned Enterprises (BUMDes) reached IDR 2.84 trillion, while the revenue of BUMDes Bersama reached IDR 17.67 billion, and the revenue of BUMDes LKD reached IDR 197.8 billion. The total rural economy managed by all BUMDes reaches IDR 3.06 trillion per year in villages across Indonesia.

Village-Owned Enterprises (BUMDes) employ 329,839 villagers. A total of 184 villagers work at BUMDes Bersama. Meanwhile, BUMDes Bersama LKD employs 1,209 workers. Thus, overall, all BUMDes absorb 331,232 local workers.

Also read: Reducing the Rate of Unemployment in Rural Areas

In addition, according to Halim, BUMDes also manages groups of the poor, including poor women. It is noted that 123,119 customers of BUMDes Bersama LKD are from lower-income backgrounds. "Thus, the economy of 454,351 village residents is directly affected by BUMDes activities in the country," said Halim.

KOMPAS/AGUS SUSANTO

Tourists enjoy bubble baths at Side Land in Kaduela Village, Pasawahan District, Kuningan Regency, West Java, on Wednesday (1/5/2024). The natural attraction is managed by the Arya Kamuning Kaduela Village-Owned Enterprises (BUMDes).

The CSR Program Awards for State-Owned/Private Enterprises and Sustainable Village Development Awards 2024, according to Sudarmanto, will be held for the third time since it started in 2022. This time, the assessment will begin on September 23, 2023, with judges from various ministries/institutions involved in the process.

Also read: Realizing Spatial Justice in Rural Areas

The CSR and Sustainable Village Development Awards 2024 are given to companies and other institutions, such as community organizations and individuals. The awards are given for their contributions in helping to accelerate village development through the involvement and development of BUMDes/BUMDes Bersama or other CSR activities.

In 2024, the number of participants increased to 100 candidates, 93 of whom passed and received awards. The previous year's event was attended by 60 candidates, and 54 of them received awards.