Jakarta (ANTARA) - The National Research and Innovation Agency (BRIN) has advised village-owned enterprises (BUMDes) to carry out digital transformation to support the economic growth of villages.

"Implementing digital ecosystem in the current 4.0 era is no longer a choice, but a must," BRIN head Laksana Tri Handoko stressed at the "BUMDes for the Economic Growth of Advanced and Prosperous Villages" webinar here on Wednesday.

According to him, digital transformation in BUMDes management is one of the solutions for expanding the market and utilizing the development of technology to improve the economy and welfare of village residents.

Apart from digital transformation, capital and increasing human resources capacity are essential factors in BUMDes management, he said.

BUMDes must have managers that have strong entrepreneurship, initiative, and commitment to their duties and responsibilities to develop the business, he added.

He further noted that BUMDes could provide a concrete solution for economic revival in villages. They have vast potential because they accommodate activities in the economic sector, public services, and in the utilization of village assets managed by a village or in collaboration with other villages.

Data from the Ministry of Villages, Development of Disadvantaged Regions, and Transmigration has shown that as of 2021, at least 51,134 villages in Indonesia have BUMDes, and 1,852 BUMDes are utilizing technology to market their products via e-commerce.

The BUMDes' digital transformation has occurred as a result of the COVID-19 pandemic and is expected to motivate and encourage more BUMDes to digitalize.

As of July 2022, a total of 7,902 BUMDes have become legal entities. The figure has tripled compared to January 2022, when their number stood at 2,628.

Handoko expressed the hope that the increase in the number of BUMDes will provide the greatest benefits for the progress and welfare of the village community.

"To realize the greatest benefits, BUMDes management must be carried out in a professional, transparent, and strong manner," he emphasized.

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Translator: Martha Herlinawati, Raka Adji
Editor: Azis Kurmala
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