BUMDes Development in Limitations of Village and Resources

Potential Study at BUMDes Desa Panggungharjo, Bantul,

Yogyakarta

Abdul Ghofar, Teguh Kismantoroadji, Dwi Harilaksana

Universitas Pembangunan Nasional Veteran Yogyakarta

Keyword: BUMDes, limitations, strategy, development

Abstract: This study takes one of the BUMDes in Bantul Regency, namely BUMDes Panggungharjo in Sewon District,

Bantul. BUMDes Panggungharjo is a BUMDes that does not have natural resources, so it is more oriented to

the development of the creative economy, the problem is how to optimize human resources so that the

Panggung Harjo community can develop. This research method uses a descriptive approach to qualitative

methods. The purpose of this study was to determine the strategies used in the development of BUMDes

optimization and effectiveness. The results of the study showed that with shortcomings, BUMDes

Panggungharjo was able to become the largest BUMDes in Bantul Regency, and could be said to be the largest

in DIY Province.

1 INTRODUCTION

According to RI Law No. 23 of 2014 concerning

Regional Government, regional autonomy is the

right, authority, and obligation of autonomous

regions to self-regulate and administer Government

Affairs and the interests of local communities in the

system of the Unitary State of the Republic of

Indonesia. So that regional development is the basis

of state development. Regional autonomy makes it

easy for local

governments to regulate their own regions, know the

potential of their regions, and what supports the

regions to develop.

Supported by the existence of village funds

regulated in Republic of Indonesia Government

Regulation No. 60 of 2014 concerning Village Funds

Sourced from the State Revenue and Expenditure

Budget where village funds are funds sourced from

the State Revenue and Expenditure Budget intended

for villages that are transferred through the Revenue

and Expenditure Budget District/city area and is used

to finance governance, development, community

development, and community empowerment. Then

followed by the Regulation of the Minister of

Villages, Development of Disadvantaged Regions

and Transmigration Number 4 of 2015 concerning

Establishment, Management, Management, and

Dissolution of Village-Owned Enterprises, where

several BUMDes objectives are to improve the

village economy, optimize village assets, and open

employment for welfare village community, the

formation of BUMDes must be done.

Also stated in the Law of the Republic of

Indonesia NO. 6 of 2014 concerning Villages, each

village is mandated to make BUMDes with the aim

that later when the village funds are no longer given,

these BUMDes are expected to be able to build

village independence in exploring the sources of

original village income that are managed into PADes.

The local government of the Bantul Regency is one

of the regions that is being intensively involved in the

establishment and development of BUMDes. There

are approximately 26 BUMDes in Bantul. It is

divided into three categories, namely start-up,

developing, and going forward. Start-up is

constrained by how they find BUMDes managers

who have the ability, Develops more on how to

manage management, how to organize internal

management. Going forward to how the profit

obtained is to reinvest.

This study took one of the BUMDes, namely

BUMDes Panggungharjo in Sewon, Bantul. It

included in sub-urban areas, where the location is on

the border between municipalities and districts so that

the character of poverty is homeless and loneless

Ghofar, A., Kismantoroadji, T. and Harilaksana, D.

BUMDes Development in Limitations of Village and Resources Potential Study at BUMDes Desa Panggungharjo, Bantul, Yogyakarta.

DOI: 10.5220/0009960701930196

In Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management (ICBEEM 2019), pages 193-196

ISBN: 978-989-758-471-8

193

because poor people in suburban areas do not have a

home. BUMDes is not only seen as profit but also

must look at the benefits that will be obtained by the

community when this BUMDes exists and is

progressing. BUMDes Panggungharjo includes those

who do not have natural resources, so they are more

oriented to the development of the creative economy,

and how to optimize existing human or community

resources or with community empowerment.

However, from the lack there is BUMDes

Panggungharjo, becoming the largest BUMDes in

Bantul, and can be said to be the largest in DIY

Province. Because of this, the purpose of this study

was to find out 1) the strategy used in developing the

BUMDes, 2) the effectiveness of the strategy that was

used.

2 MATERIAL

2.1 Badan Usaha Milik Desa

(BUMDes)

Definition of BUMDES or Village-Owned

Enterprises, according to Permendagri No. 39 of 2010

concerning BUMDES, is a village business

formed/established by the village government whose

capital ownership and management are carried out by

the village government and the community. Village-

Owned Enterprises (BUMDES) are village business

institutions managed by the community and village

government in an effort to strengthen the village

economy and are formed based on the needs and

potential of the village. According to Law Number 32

of 2004 concerning the Regional Government, the

establishment of a business entity is in accordance

with the potential and needs of the village. It is also

explained in Government Regulation Number 72 of

2005 concerning Villages that in order to increase the

income of the village and the community, the village

government can establish a Village-Owned

Enterprise village potential. This means that the

formation of BUMDES is based on the needs,

potential, and capacity of villages, as an effort to

improve the welfare of the community. The planning

and formation of BUMDES is at the initiative of the

village community

Village development can be increased through

developing the economic potential of the village and

becoming a forum for rural communities to develop

themselves and their environment independently and

in a participatory manner. In this research, the

existence of BUMDes is one of the considerations to

channel village community initiatives, develop

village potential, manage and exploit the potential of

village natural resources, optimize human resources

(villagers) in its management, and there is capital

inclusion from village governments in the form of

financing and village wealth that submitted to be

managed as part of BUMDes.

Regard to small businesses, there are some special

characteristics of small businesses, as stated by

Sutojo et al. (1994) in Baswir (2000):

1. More than half of small companies are

established as the development of smaller

businesses.

2. Apart from capital problems, other problems

related to small businesses vary according to the

level of business development.

3. Most small businesses are unable to meet

administrative requirements in order to obtain

bank assistance.

4. Nearly 60% of small businesses still use

traditional technology.

5. Nearly half of small companies only use

installed capacity of less than 60%

6. Small business market share is decreasing due

to lack of capital, technology, and technology

weaknesses are also due to managerial

weaknesses.

7. Nearly 70% of small businesses do direct

marketing to consumers.

2.2 Community Empowerment

Empowerment is an effort to build community

capacity by encouraging, motivating, and increasing

awareness of their potential and trying to develop

potential into concrete actions (Eddy Papilaya in

Zubaedi, 2007). Community empowerment can be

realized through active community participation,

facilitated by the existence of empowerment actors.

The main target of community empowerment is those

who are weak and do not have the power, strength, or

ability to access productive resources or people who

are marginalized in development. The ultimate goal

of the community empowerment process is to make

the community members independent so that they can

improve the family's standard of living and optimize

the resources they have (Kesi Widjajanti, 2011).

Besides that, according to Kussujaniatun and

Kismantoroaji (2017), social interaction is an

important influence in community empowerment,

this is obtained from the large collaboration between

craftsmen and local governments that need to be

maintained, interaction with partners in producing

goods, interaction with suppliers in the availability of

raw materials, interaction with brokers/agent in

ICBEEM 2019 - International Conference on Business, Economy, Entrepreneurship and Management

194

marketing, and interaction with banking partners due

to capital supply.

Kartasasmita (1995) states that efforts to

empower people must be made in three ways, namely:

1. Creating an atmosphere or climate that allows

the potential of the community to develop.

This condition is based on the assumption that

every individual and society has potential that

can be developed. The essence of

independence and empowerment of the people

is the belief and potential of independence of

each individual who needs to be empowered.

2. Strengthening the potential or power

possessed by the community by implementing

concrete steps, accommodating various inputs,

providing infrastructure, and good physical

targets (irrigation, roads, and electricity) as

well as social (schools and health service

facilities) that can be accessed by the lowest

strata of society. Establishing access to

various opportunities will make people more

empowered, such as the availability of

funding, training, and marketing institutions.

Quality improvement and improvement of

education and health facilities, as well as

access to sources of economic progress such

as capital, technology, information,

employment, and markets.

3. Empowering people in the sense of protecting

and defending the interests of weak

communities. Protecting and defending must

be seen as an effort to prevent unequal

competition and exploitation of the weak.

3 RESEARCH METHODS

This study uses a descriptive approach with a

qualitative method located in BUMDes

Panggungharjo, Panggungharjo Village, Sewon

District, Bantul. Primary data obtained by interview

structured questions and answers to BUMDes

commissioners while secondary data obtained from

the literature in the form of documents (village

profiles), books, journals, and related data. Data

analysis uses observation and documentation. The

focus of the research are 1) The strategy used in the

development of BUMDes, 2) The effectiveness of the

strategy that has been used. Research results obtained

using interactive analysis, namely data collection,

data reduction, data presentation, and drawing

conclusions.

4 DISCUSSION

Pangggungharjo BUMDes was formed in 2013. The

initial capital investment from the village was Rp.

37,000,000.00. For 2014 BUMdes capital investment

of IDR 100,000,000.00, 2015 IDR 100,000,000,000,

2016 IDR 100,000,000.00 after 2016 until now

BUMDes Panggungharjo no longer gets capital

participation from the village government. Bantul

BUMDes manages around 98 employees, with

monthly salary needs of Rp 188,000,000.00, without

any subsidy from the village government. There are

five business units in BUMDes Panggungharjo,

namely waste management, household waste

management in the form of cooking oil and tamano

oil, village self-service, agro and agriculture, as well

as education and culinary tourism in Kampung

Mataraman. This village self-service is intended as a

place for SMEs in Panggungharjo to sell their

business results. The total turnover of 5 business units

in Panggungharjo in 2018 is around Rp

5,200,000,000.00. The most income BUMDes

Panggungharjo is from the Mataraman village unit,

for rental costs per day of Rp. 18,000,000.00, in 2019,

Mataraman Village is the location of FKY Jogja with

a rental fee of Rp. 65,000,000.00 for 18 days, but

BUMDes are given authority in the management of

tenants participating in the FKY event.

BUMDes Panggungharjo, Bantul manages around

98 employees, from these 98 employees, BUMDes

does not look at the level of education and social

strata of these employees, the main requirement is

that of Panggungharjo villagers, so that the benefits

of BUMDes are immediately felt by local residents.

The main thing about this BUMDes Panggungharjo is

to provide employment for marginalized

communities where the community is vulnerable to

poverty, women heads of households, disabilities,

and abandoned children who have been netted by

social services so that they no longer return to the

road. Of the 98 employees, there are 48 people in

Mataraman Village, a salary from the junior staff of

BUMDes Panggungharjo, which is Rp 1,850,000.00.

The profit taken by BUMDes every year from

turnover is 5-6% and gives PADes from income in

2018 of Rp 170,000,000.00. The profit from

BUMDes Panggungharjo from each business unit is

managed by BUMDes. Afterward, BUMDes

compiles financial reports so that the profit and loss

of BUMDes business units are known. This net profit

sharing is 40% added to the additional PADes, 35%

becomes return capital that becomes cash for next

year's capital, 20% is a bonus for management, 5%

BUMDes Development in Limitations of Village and Resources Potential Study at BUMDes Desa Panggungharjo, Bantul, Yogyakarta

195

for BUMDes social activities such as for renovation

of uninhabitable houses for the community.

BUMDes Panggungharjo is included in the

developing BUMDes level, where the BUMDes is

conducting internal management, such as related to

BUMDes finance. Each business unit in BUMDes

Panggungharjo is regulated by separate management

because it is related to the revenue target of each

business unit. The main business unit of BUMDes

Panggungharjo is waste management which is related

to waste which is the biggest problem in the entire

world, how can this waste be a profit for the

community. Garbage in Panggungharjo is divided

into three parts, namely organic, inorganic, and

residue. Inorganic waste has a sale value, and the

waste is sold separately as a bottle of mineral water,

it has been separated between the lid, the bottle and

the mineral water label so that the selling price will

also be different. From the sale of organic waste itself,

the average monthly income is IDR 10,000,000.00.

BUMDes Panggungharjo has collaborated with

collectors. Organic waste is processed by BUMDes

into liquid and solid fertilizer, sold in the form of

products produced from fertilizer, BUMDes

Panggungharjo produces rice under the name Bestari.

For residual waste such as sanitary pads, pampers,

BUMDes, Panggungharjo still cannot solve the

problem. Residual waste is still being collected by the

laystall. Desa Panggungharjo was given

responsibility by Bantul Environmental Service to

manage waste in 6 village markets, including Bantul

Market.

Many BUMDes are not yet developed or even

advanced, and it could be because these BUMDes are

not ready to take care of capital, maintain, and

develop the capital. The BUMDes management

dilemma is that when BUMDes was formed, there

was no clarity regarding salary, so there were still

many who did not focus on its management.

BUMDes can be seen from three aspects, namely

economic, social, and political aspects. Because one

of the reasons BUMDes did not advance was due to

doubts from the village head to make capital

participation because the village head still had a

chance to be reelected by the community, when the

BUMDes was large the village head was afraid of the

fame of his BUMDes director, fearing to be a

competitor when village head elections are held.

5 CONCLUSION

BUMDes Panggungharjo, Sewon, Bantul are

included in the good category and are modeled by

other BUMDes in Bantul Regency. BUMDes must be

managed professionally and independently, so we

need people who have the competence to manage it.

BUMDes can also finance itself and contribute to

PADes. Before submitting capital investment to

establish BUMDes, it is recommended to make a

business plan. From the business plan, the business

analysis will be formed, so that the actual capital

needs will be known so that the BUMDes will go

according to plan and the results will be effective so

that it can become the largest BUMDes of Bantul

Regency.

REFERENCES

Baswir, Rivrisond. 2000. Koperasi Indonesia. BPFE,

Yogyakarta.

Kartasasmita, Ginandjar. 1997. Pemberdayaan Masyarakat:

Konsep Pembangunan yang Berakar Pada Masyarakat.

Pidato Sarasehan DPD Golkar Tk. 1 Jawa Timur :

Surabaya.

Kussujaniatun,Sri.,Kismantoroadji, Pengaruh Peningkatan

Sosial dan Ekonomi terhadap Perilaku Kewirausahaan,

International Conference on Technology Enginneering

and Social Science, HASE, Nabu Research

Academy,2017.

Peraturan Pemerintah RI Nomor 60 tahun 2014 tentang

Dana Desa yang Bersumber dari Anggaran Pendapatan

dan Belanja Negara

Peraturan Pemerintah RI Nomor 72 Tahun 2005 Tentang

Desa, Penjelasan mengenai Desa.

Undang-Undang RI No. 23 tahun 2014 tentang

Pemerintahan Daerah

Undang-Undang RI Nomor 32 Tahun 2004 tentang

Pemerintahan Daerah

Undang-Undang Republik Indonesia NO. 6 Tahun 2014

tentang Desa

Widjajanti, Kesi. 2011. Model Pemberdayaan Masyarakat.

Jurnal Ekonomi Pembangunan. 12(1):15-27.

Zubaedi, Wacana Pembangun Alternatif: Ragam Prespektif

Pembangunan dan Pemberdayaan Masyarakat,

(Jakarta: Ar Ruzz Media,2007), hlm 42.

ICBEEM 2019 - International Conference on Business, Economy, Entrepreneurship and Management

196