"When they become legal entities, BUMDes become more flexible, but capacity-building is needed so that they can become holding companies. They must be properly assisted," the ministry's expert staff for development and community affairs Bito Wikantosa said at the "BUMDes for the Economic Growth of Advanced and Prosperous Villages" webinar here on Wednesday.
According to him, the key to BUMDes' success lies in their managers or human resources. Thus, capacity-building is needed, such as the capacity to identify the village's main potential for business development and flagship commodities as well as understand the appropriate technology that can be used to boost the village's economic activity.
He noted that so far, cooperation to build the capacity of BUMDes human resources is still being carried out through collaborations with universities only.
To this end, he said he hoped that the Ministry of Manpower and the National Research and Innovation Agency (BRIN) would provide training and assistance to educate BUMDes human resources on developing the businesses.
He further said that BRIN and universities could help BUMDes to formulate a master plan for economic development or a village business plan.
Thus, future village meetings will need to be changed so that they not only discuss proposals but also the BUMDes master plan for village economic development, thereby allowing BUMDes to carry out their functions and roles optimally to drive the progress of the village.
BUMDes have three functions, namely as providers of social services, such as handling waste; as producers of services and goods, such as developing tourism businesses; and as consolidators, namely consolidating community businesses, including business units in the village.
BRIN can also support BUMDes through research and innovation to identify the main potential of science-based villages and introduce the appropriate technology.
In addition, BUMDes must strengthen partnerships and collaborations with various parties such as ministries, institutions, and business players.
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Translator: Martha Herlinawati, Raka Adji
Editor: Azis Kurmala
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