Elaboration of local wisdom values in village-owned enterprises arrangements as legal entities
DOI:
https://doi.org/10.61511/jreh.v1i2.2024.2255Keywords:
BUMDesa, management, recognition, subsidiarity, villageAbstract
Background: Village Owned Enterprises in Indonesia are business entities in villages that are based on a spirit of kinship and mutual cooperation. The essence of the management of Village Owned Enterprises should represent local wisdom and values attached to the village. Methods: This research is normative juridical research using statutory and conceptual approaches. Findings: The village as the smallest unit of the Indonesian Government has autonomous authority to regulate and meet the needs of the village community by mobilizing all the village's natural resource potential to create village economic independence, one of which is by establishing a Village-Owned Enterprise. When analyzed from a historical perspective, Village-Owned Enterprises have experienced a very significant change in legal arrangements through Law Number 11 of 2022 concerning Job Creation which states that Village-Owned Enterprises are legal entities. This juridical fact is the background to research on legal principles in the Management of Village-Owned Enterprises by elaborating local wisdom values as the embodiment of business entities with village characteristics involving community participation. Conclusion: The results of the study show that community participation in the management of Village-Owned Enterprises is the main thing needed to optimize the management of Village-Owned Enterprises that can provide benefits and welfare without abandoning village local wisdom values. Novelty/Originality of this article: Therefore, the role of the community in realizing the values of village local wisdom in the management of Village-Owned Enterprises is very much needed, bearing in mind that the spearhead of strengthening Village-Owned Enterprises is the concrete manifestation of village community participation. The values of local wisdom attached to the village can be utilized as the characteristics of Village Owned Enterprises in each village. Thus, villages throughout Indonesia have various characteristics in managing village-owned enterprises.
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