9 Things That Prevent Bumdes from Becoming a Giant

Although it has been three years, the growth of Village-Owned Enterprises (BUMDes) in encouraging the prosperity of the population through the hard work units it has built is still far from expectations. Thousands of villages still haven’t even established this forum.

What are the obstacles experienced by most BUMDes that have not yet been able to progress as a hard work forum that quickly impacts prosperity for their villages?

From the data search handled by Berdesa.com, it was revealed that there were several things that prevented Village-Owned Enterprises (BUMDes) in many villages from being able to become engines of driving people’s prosperity. Some of those things include:

Village Apparatus

The understanding of the village apparatus, especially the village head regarding the respective BUMDes, is really lacking. This happens because the village head so far only recognizes the role as an extension of the government structure above it, which has more problems with governance issues and project and project responsibilities that come from above. As a result, it takes hard work to find out which BUMDes are more reliant on entrepreneurial problems.

The lack of understanding of BUMDes is what makes the BUMDes discourse not well socialized to villagers. How can socialize if the understanding itself is still really inadequate. As a result, BUMDes information only circulates to the village elite or only to village officials.

Village officials do not yet fully understand the extent of authority that the village currently has even though Law NO. 6 of 2022 concerning Villages.

The principle of subsidiarity and recognition has not been fully utilized as the village’s power to use its potential and assets in accordance with the mandate of the Village Law.

Physical Development

The concept of village development that has been understood so far is still limited to the notion of physical development and based on structural cues from above. In addition, physical development is more easily seen as an ‘achievement’ because there is a visible physical form. In contrast to empowerment projects, which are more agenda-driven, the results are not visible physically. Weak human resource development is what makes institutional capacity and village entrepreneurship not develop.


There has not been good communication between village elites and residents regarding a lot of information that should be communicated. Not behind the scenes anymore, some arrogant villages and village officials only reveal a lot of information to certain groups who are friendly with power. As a result, many Village Owned Enterprises (BUMDes) are structured by people close to the village head or even his own family. This also occurs in other operational areas. That’s why many villagers don’t know the increasing information about BUMDes.


The number of corruptive power attitudes in the upper structure, as evidenced by the number of regional heads such as Regents and Governors who were arrested by the KPK due to constraints on abuse of power and corruption, made the spirit of making social change for the population weak and even faked these steps. It is evident that there are hundreds of village heads who are currently facing a court because they are suspected of misusing village funds for their own interests.


The many government agendas before BUMDes such as KUD, BUUD and many other failed and uncertain agendas made some villagers think that they did not have to return the funds that should be used as capital for the hard work of the village carried out by BUMDes.
Managerial Ability

Insufficient Mastery of Managerial Ability. It is not easy for the village to find someone who has superior managerial abilities in terms of business management. Even if there are residents who have such abilities, generally they have done work in other places and if they are appointed to manage the Village-Owned Enterprises (BUMDes) then it is only a sideline. As a result, BUMDes did not move and run in place. Meanwhile, appointing people with inadequate capacity, marked by their track record, is tantamount to carrying BUMDes in a more worrying direction.

Not Attracting Millennials

BUMDes itself is not ‘sexy’ enough for most young people to work. It is still difficult to convince young people that BUMDes can guarantee the welfare of its activists. This is what makes young people not much involved in BUMDes, finally the hard work built by most Village-Owned Enterprises (BUMDes) is still carried out with the conventional version because it is run by the elderly.

Big Profit

This condition is exacerbated by the incessant campaign that illustrates that BUMDes must generate large profits in the form of profit (rupiah). This can be seen from the success of BUMDes which is often measured by the profits deposited into the village treasury. This kind of perspective makes village heads and village officials add a heavy burden because they have to make money machines. How can you create a hard working unit with a big turnover and profit for a remote village, for example.

Isn’t social prosperity not just a matter of rupiah numbers? Which is more important? a large, concrete profit for most villages or social benefits so that it can move and encourage the development of the village economy?

Those are some of the conditions that hinder the progress of Village Owned Enterprises (BUMDes) to become as expected. Villages throughout Indonesia must move on from past examples because this time the village has full authority to optimize its assets and wealth.

How about your village?

Category: BUMDes

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