VILLAGE-OWNED ENTERPRISES IN BREBES REGENCY: GOVERNANCE GAPS, MARKET COMPETITION, AND PATHWAYS TO SUSTAINABILITY

Tangguh Pratysto; Fransiscus Xaverius Sugiyanto; Deny Cahyadinanto Sanjoko; Maulana Ghani Yusuf; Moh Najikhul Fajri

Authors

Tangguh Pratysto Department of Economics and Development Studies, Diponegoro University, Semarang, Indonesia
Fransiscus Xaverius Sugiyanto 1Department of Economics and Development Studies, Diponegoro University, Semarang, Indonesia
Deny Cahyadinanto Sanjoko Department of Economics and Development Studies, Diponegoro University, Semarang, Indonesia
Maulana Ghani Yusuf Department of Economics and Development Studies, Diponegoro University, Semarang, Indonesia
Moh Najikhul Fajri Department of Economics and Development Studies, Diponegoro University, Semarang, Indonesia

Keywords:

BUM Desa, KDMP, rural development, poverty alleviation, governance, Brebes regency

Abstract

The poverty rate in Brebes is among the highest in the province, with 15.6% of its people living below the poverty line in 2024. To overcome these problems, Village-owned Enterprises (BUM Desa) were introduced through Law No. 6 of 2014 to tap local potential, boost welfare, and raise Village Original Revenue. While every village in Brebes has a BUM Desa, many are still at the beginning of their development and experience setbacks in areas such as legal formalisation, governance, managerial skills, and market competitiveness. This research uses a qualitative approach and a semi-structured interview with the Baperlitbangda and Dinpermades to analyse the institution's performance and its relationship with the emerging Koperasi Desa Merah Putih (KDMP). The findings indicate reliance on individual leadership, high levels of non-performing loans, and unclear market-share allocations, as Village-Owned Enterprises (BUMDes) are suspected of competing with KDMPs rather than collaborating with them. Strengthening the legal framework for professional management of Village-Owned Enterprises (BUM Desa) in Brebes Regency is necessary to realize a dynamic village economy.

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