"We ask regional governments, whose BUMDes in their areas are not yet strong enough and active, to learn from other regional governments that have actively involved BUMDes," the ministry's secretary general, Taufik Madjid, said at the "BUMDes Leveraging Village Economy" discussion here on Friday.
He explained that the strengthening of BUMDes' involvement aligns with the mandate of Government Regulation Number 11 of 2021 on making village-owned enterprises the main economic instruments in villages.
In relation to economic transformation, Madjid explained that BUMDes improve the standard of living of village communities through two models: as producers who actively make products or as consolidators who actively collect the products made by residents and market them.
"Whatever model the BUMDes choose, we ensure that their activities continue to be based on the welfare of residents and do not kill existing business activities," he said.
He further said that, apart from economic transformation, the involvement of BUMDes would also bring about a transformation in the social aspect and work culture of village residents.
This is because BUMDes' development usually stimulates the provision of training, both from the government and non-governmental organizations (NGOs), which improves the knowledge and skills of village residents.
The role of BUMDes in improving village residents' standard of living can also be seen through BUMDes' participation in central government programs, such as the provision of clean water and electricity services in villages.
"BUMDes can collaborate with the central government to support national programs regarding equitable development and welfare so that the orientation is not profit," he added.
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Translator: Hana Dewi, Raka Adji
Editor: Rahmad Nasution
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