"BUMDes is a door for villages to realize village economic independence, develop the economic potential of residents for village revival," he said in a written statement received here on Wednesday.
There are currently seven technical regulations under Law Number 11 of 2020 concerning Job Creation that ensure that BUMDes have more freedom as economic entities, he said.
The technical regulations include Government Regulation Number 11 of 2021 regarding BUMDes, Government Regulation Number 5 of 2021 regarding the Implementation of Risk-Based Licensing, Government Regulation Number 19 of 2021 concerning the Implementation of Land Procurement for Development for Public Interest, and Government Regulation Number 23 of 2021 concerning Forest Management and Preparation of Forest Management Plan, he informed.
The seven regulations allow BUMDes the flexibility to cooperate with other parties to manage water resources, utilize toll and non-toll roads, and utilize forest areas, the minister said.
"Of course, this gives a big opportunity to a BUMD to grow as a strong economic entity and make an important contribution to the village economy," he remarked at a public lecture organized by the Polytechnic School of Administrative Sciences (STIA) of the State Administration Institute (LAN) Jakarta.
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A BUMD could serve as an operating company that runs its business independently or as an investment company, where it only functions as the parent business unit, he said.
Nevertheless, the main principle that BUMDes must uphold is that their presence must not damage businesses that the local community has developed, he added.
"Because BUMD is a village institution whose capital comes from the village, whose impact is for the economy of the community in the village," he explained.
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Translator: Zubi Mahrofi, Raka Adji
Editor: Rahmad Nasution
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