Jakarta (ANTARA) - The Ministry of Home Affairs has urged regional governments to help village governments manage village-owned enterprises (BUM Desa), director-general of village government development at the ministry, Yusharto Huntoyungo, has said.

Through the assistance provided by the regional government, it is expected that village governments can choose to develop the type of business that is suitable for the region in an effort to reap profits through BUM Desa management, he added.

"We hope provincial and district governments will be able to provide guidance and development in the form of technical assistance, capacity building, capital assistance, grants, and bridging cooperation with banks, state-owned enterprises (SOEs), region-owned companies, and private sector as well," Huntoyungo said on Monday.

The existence of BUM Desa could help increase villages' original income, he added.

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Besides assistance, he said he also expected regional governments to provide technical guidance for increasing the skill and capacity of BUM Desa's managers.

In addition, the governor, as a representative of the central government, can foster and supervise the work of regional heads to assist BUM Desa's management, Huntoyungo stated.

For example, by examining the documents that regulate authority, the number and profile of BUM Desa, and their human resources, he elaborated.

The provincial government also needs to check the existence BUM Desa that is no longer operating in an effort to help the related BUM Desa to modify their business and start operating again, he said.

In addition, Huntoyungo asked the government’s internal supervisory apparatuses (APIP) at the provincial level to review the policies set by the regional heads related to the management of village finances and BUM Desa.

Meanwhile, APIP at the district/city level can check the financial performance of BUM Desa, he added.

Earlier, President Joko Widodo (Jokowi) had asked SOEs and BUMDs to collaborate with BUM Desa in their business activity, he noted.

Since 2014, the Indonesian government has committed to developing all regions in Indonesia, and not only Java, he added.

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Translator: Boyke Ledy, Resinta S
Editor: Rahmad Nasution
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