Mapping of Potential Village-Owned Enterprises (BUMDes) for Rural Economic Recovery during the COVID-19 Pandemic in Central Java, Indonesia

Abstract

Abstract For several years the Government of Indonesia has been initiating the growth of Village-Owned Enterprises (BUMDes), economic institutions that manage the village’s economic resources. The Central Java Provincial Government also provides incentives to establish BUMDes in most villages in Central Java. During the COVID-19 pandemic, some rural communities were affected, and the village economy stagnated. BUMDes is one of the village economic institutions that is expected to be able to drive the village economy in the era of the COVID-19 pandemic. This study aims to analyze the potential of BUMDes as a solution to handling the impact of the COVID-19 pandemic in rural areas, especially from an economic aspect in Centra Java. This type of research is descriptive with the main qualitative approach assisted by quantitative (mixed method). The research technique used was a survey involving 337 villages. Respondents came from elements of village officials and BUMDes managers. The instrument used was through online media (google form). Data analysis used descriptive statistical techniques in the form of means and percentages. The conclusion of this study shows that BUMDes has the potential to play a role in economic recovery, but this function is not yet optimal. because the business sector managed by BUMDes is not based on the village’s superior potential, as well as the lack of a business development concept, weak human resource and capital capacity, and lack of cooperation.