It was also recorded that 6,583 Collective BUMDes (BUMDesma) were established as a form of business cooperation between villages
Jakarta (ANTARA) - Village-owned enterprises (BUMDes), as the sole public legal entities in villages, are capable of preserving and realizing equitable economic growth in villages, Villages, Development of Disadvantaged Regions, and Transmigration (PDTT) Minister Abdul Halim Iskandar said.



BUMDes are capable of achieving the eight Village Sustainable Development Goals (SDGs), namely equitable economic growth in villages and the 18th goal of building dynamic village institutions and adaptive village culture.



Iskandar in a written statement released on Friday said that so far, his ministry had increased the number of BUMDes and improved their quality.



In 2014, there were only 8,189 BUMDes, while currently, their number has reached 60,417.

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"It was also recorded that 6,583 Collective BUMDes (BUMDesma) were established as a form of business cooperation between villages," the minister added.



The spirit to establish BUMDes has arisen with the issuance of policies to improve the quality of BUMDesa.



An example of this is the issuance of Law No. 11 of 2020 on Job Creation, which especially strengthens the legal position of BUMDes as prevailing public legal entities.



"The village's spirit can also be observed from the allocation to BUMDes in the village budget," he informed during the “2022 Brilliant Village Deepening Inauguration” at Airlangga University, Surabaya, East Java, on Thursday.


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The total village budget in 2022, gathered from 74,961 villages, reached Rp117.04 trillion, he noted.



At least Rp867.66 billion of the budget was allocated to establish and provide capital to BUMDes. This shows that the role of BUMDes has become stronger in villages.



BUMDes’ accountability is also being maintained through annual reports to villagers through village-level deliberations, the minister informed.



If a BUMDes faces bankruptcy, then Presidential Regulation (PP) No. 11 of 2021 provides a mechanism to recover the BUMDes, whether by replacing the managers, increasing the initial capital, or changing business units.



To ensure the continuity of the one-village-one BUMDes program, the registration system on the website http://bumdes.kemendesa.go.id/ is only accepting one BUMDes per village.



"BUMDes that have been approved are the ones that are signed by the PDTT Minister, which cannot be changed back," Iskandar explained.


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Translator: Zubi Mahrofi, Fadhli Ruhman
Editor: Fardah Assegaf
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