Village-Owned Enterprises as an Effort to Empower Community in

Segaramakmur Village Bekasi

Dejehave Al Jannah and Erna Suherna

Government Science Study Program, Faculty of Economics, Business and Social Sciences,

Universitas 17 Agustus 1945 Jakarta, Indonesia

Keywords: Village Owned Enterprises, Implementation, Community Empowerment.

Abstract: Indonesia is a country where the majority of population lives in rural areas. The national development

cannot be separated from the development of villages. It can be achieved by utilizing human and natural

resources, gives a chance to engage and improve internal circumstances. This is usually called village

community empowerment. This research aims to determine the process of implementing community

empowerment program and determine supporting and inhibiting factors in community empowerment

programs through Village-Owned Enterprises in Segaramakmur Village, Tarumajaya District, Bekasi

Regency. This research used qualitative methods with observations, interviews, and documentation

technique for collecting dana methods. The results show that communication between implementers is only

effective with the village government to obtain capital participation. Meanwhile, communication with the

community is still less active. The management resources of BUMDes (Village-Owned Enterprises)

Segaramakmur Sejahtera have placed management members according to their educational background and

expertise. The disposition of the implementor in its implementation is that the implementor still has different

views on village government politics which causes personal conflicts. The bureaucratic structure of

BUMDes Segaramakmur Sejahtera, BUMDes only relies on the Village Government. Implementation

indicators according to George C. Edward III are supporting factors for implementation, while factors

inhibiting implementation are business capital, internal conflict and lack of public awareness.

1 INTRODUCTION

Indonesia is a country where the majority of

population lives in rural areas, up to 65% of

Indonesia's population lives in rural areas, while the

remaining 35% lives in urban areas (Suwito &

Jannag, 2021). A village is a government unit that

has been granted customary autonomy rights and is a

legal entity that has the authority to manage and

regulate local communities based on their origins

(Jeddawi et al., 2018). According to Law Number 06

of 2014, a village is a legal community unit that has

territorial boundaries that has the authority to

regulate and manage government affairs, the

interests of local communities based on community

initiatives, original rights, and/or traditional rights

that are recognized and respected in the government

system. In general, development cannot be separated

from empowering village communities. By utilizing

human resources and natural resources in the village,

it gives the community the initiative to engage in

social action aimed to improving their internal

circumstances and conditions. It is through

community empowerment that development can be

realized.

Community empowerment is a series of

development processes that make people take the

initiative to start the process of social activities to

improve their own situation and conditions (Maryani

& Nainggolan, 2019). Community empowerment

will be successful if the community participates. In

this way, this empowerment will be successful not

because of one party but because there is active

cooperation between the party carrying out the

empowerment and the party being empowered. The

village government is given authority by the central

government to manage the village area

independently. Through village-level economic

institutions, which is Village-Owned Enterprises

(BUMDes), as one way to encourage development at

the village level. Village-Owned Enterprises are

businesses created by villages whose

Al Jannah, D. and Suherna, E.

Village-Owned Enterprises as an Effort to Empower Community in Segaramakmur Village Bekasi.

DOI: 10.5220/0012580200003821

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 4th International Seminar and Call for Paper (ISCP UTA ’45 JAKARTA 2023), pages 48-54

ISBN: 978-989-758-691-0; ISSN: 2828-853X

implementation is supervised by the village

government and the community (Firdaus, 2020) .

According to Article 117 of Law no. 11 of 2020

concerning Job Creation explains that Village-

Owned Enterprises are established by villages and

managed in a spirit of kinship and cooperation.

Village-Owned Enterprises can carry out economic

activities and/or public services in accordance with

applicable laws and regulations. The existence of

Village-Owned Enterprises is very necessary to

mobilize village potential and help alleviate poverty.

As a result, it is hoped that the public sector will be

able to increase productivity and efficiency in its

operations, as well as provide facilities and

incentives to help the economy grow. As a result,

Village-Owned Enterprises has become a means of

forming an independent rural economy in order to

increase Original Regional Income (Kushartono &

Agunggunanto, 2016) .

There are many Village-Owned Enterprises in

Indonesia’s villages, in order to develop the village's

potential or stand with the support of the local

government. Segaramakmur, inTarumajaya District

Bekasi Regency, is one of the villages that has

transitioned from an agricultural to an industrial

area. It is hoped that it can accommodate workers

from local villages and increase village’s economic

activities. However, this causes village communities

to have a variety of livelihoods, such as rice and

pond farmers, industrial employees, and traders

around the Marunda Center industrial area and

others, which of course affects their business capital

conditions. So the community hopes that the

establishment of Segaramakmur’s Village-Owned

Enterprises can help to improve the welfare of the

community.

Segaramakmur has Regional Original Income

around Rp. 24,174.00 (twenty four million one

hundred seventy four thousand rupiah). The area of

Segaramakmur is 692,241 Ha. Currently, the

population is recorded by the Central Statistics

Agency in 2022 as 13,644 people. Based on the

topography, the livelihoods of the residents are

varied. There are 40% of residents who work as

private employees in the area, 10% of people work

as Civil Servants, 40% of people work as

entrepreneurs, and 10% of people work as farmers

(Yusuf Abdulah, Head of People's Welfare of

Segaramakmur Village 2019). The growth of

industry makes it dominant for village residents to

become private employees as their livelihood. But

on the other hand, there are also people who make a

living as rice cultivators or shrimp and fish farmers,

and there are also people who work as traders.

However, establishing a Village-Owned

Enterprise in Segaramakmur is not without any

challenge. Firs, there is a trauma of failure based on

previous efforts. Second, there are several problems

that hinder the progress of this business unit

program, such as constraints on business capital,

weak managerial systems between policy actors and

implementers who do not synergize in implementing

program policies, Village-Owned Enterprises cannot

attract the younger generation as potential unit to

introduce and develop. Through this main problem,

the author was inspired to discuss this topic as a

theme in this article.

Based on those description, it is possible to

formulate the problems as follows. First, what's the

process of implementing community empowerment

program policies in Segaramakmur through village-

owned enterprises?. Second, what factors help and

hinder the implementation of community

empowerment program through village-owned

enterprises? The aim of this research is to find the

best way in the process of implementing the

Community Empowerment Program through

Village-Owned Enterprises in Segaramakmur

Village and to obtain solutions to the supporting and

inhibiting

factors experienced by the

community.

2 LITERATURE REVIEW

Implementation is defined by Pradika (2016) as any

modification to an idea, concept, policy, or

innovation in a practical setting to produce a desired

result, such as a change in the subject's

understanding, skills, values, or attitudes. A policy

or program is seen as an activity carried out by

someone with the hope that results will be achieved

or have an impact. There are various patterns policy

implementation that have been raised by various

experts. According to George C. Edward III's theory,

legal implementation is influenced by some different

factors, including communication, daily activities,

disposition, and bureaucratic structure.

Communication is an understanding of what they

will do. The program can run if communication runs

smoothly, so that every request for information and

every regulation that will be implemented must be

sent or communicated to the appropriate person.

Furthermore, the policies communicated must be

consistent, accurate and precise. According to

George C. Edward III, resources consist of several

elements including staff, information, authority and

Village-Owned Enterprises as an Effort to Empower Community in Segaramakmur Village Bekasi

facilities. Apart from sufficient employees,

implementing policies requires expertise and ability.

Third, desposition. When discussing public

participation in policy events, the disposition or

content of the policy is also an important

consideration. To avoid prejudice in practice,

policymakers must do more than just understand

what is to be done and also need to be able to

implement it. Fourth, bureaucratic structure. Such

complex policies require extensive collaboration.

Implementing policies without a supporting

bureaucratic structure will waste resources and make

policy implementation difficult. The bureaucracy as

the implementer of a policy must be able to support

the decisions that have been taken by carrying out

appropriate coordination regarding the

implementation of the policy. Standard Operating

Procedures (SOP), routine tasks that enable

employees (policy implementers/administrative

bureaucrats) to carry out their duties.

2.1 Community Empowerment

Some define empowerment as the process of uniting

citizens around a common interest or problem so

that they can collectively identify goals, pool

resources, launch campaigns of action, and thereby

help rebuild community strength. Empowerment as

an effort to reduce inequality by improving the

distribution of real capital (such as land and access

to capital) and increasing human capacity through,

for example, general basic education and health care,

combined with adequate planning for community

protection (Zubaedi, Arif Purbantara Mujianto ,

2019).

2.2 Village-Owned Enterprises

Village-Owned Enterprises (BUMDes) are village

business institutions managed by the community and

village government in order to strengthen the village

economy. They are formed based on the needs and

potential of the village. Village-Owned Enterprises

was formed, among other things, in accordance with

Regional Government Law Number 32 of 2004 in

the context of increasing Village Original Income

(PADesa). Empowering village communities as

intended in article 127 paragraph 1 is carried out by

"increasing community involvement in village

planning and development which is carried out on a

self-managed basis. Creating projects and programs

that utilize human and rural resources for long-term

village development. Encouraging district

development in accordance with ideals , potential,

and norms of wisdom in the region" . From this it

can be said that if Village-Owned Enterprises can

provide original village income, then every village

government will be encouraged to support the

creation of Village-Owned Enterprises. The

development of Village-Owned Enterprises, one of

the economic institutions that functions in a village,

is justified based on the needs and potential of the

village in an effort to improve community welfare.

3 METHODS

In this research, we use qualitative methods with

case study type. Where researchers investigate cases

that are limited in time and activities (programs,

events, processes, institutions, or social groups) and

collect detailed information using various data

collection procedures over a certain period of time

(Creswell, 1994). With the field research,

researchers will be able to make direct observations

with sources from the reality of community life

regarding the implementation of community

empowerment programs through Village-Owned

Enterprises in Segaramakmur.

Segaramakmur Village was chosen because of its

location close to the capital, Jakarta. This is expected

to provide interesting findings, considering that the

social structure of the Segaramakmur village

population is a transitional society from the

agricultural sector to the industrial sector. This

village also received the impact of the expansion of

industrial areas which were previously concentrated

in the capital.

The primary data is data obtained directly based

on informants at the research location. The data and

information were obtained through observation,

interview, and documentation results from Village-

Owned Enterprises Segaramakmur. Of course, in

accordance with the topic related to the

implementation of community empowerment

program. The secondary data is obtained indirectly,

so in this case the researchers obtain data through

literature studies in the form of books, theses,

journals, etc. Or in the form of archival documents,

reports, and online articles/news that aim to

strengthening research related to the implementation

of community empowerment program through

Village-Owned Enterprises. This archival document

and report were obtained from Village-Owned

Enterprises Segaramakmur.

Data collection techniques used in the research

are as follows. First, direct observation of the

research subject, which in this case means directly

ISCP UTA ’45 JAKARTA 2023 - THE INTERNATIONAL SEMINAR AND CALL FOR PAPER (ISCP) UTA ’45 JAKARTA

observing the location where the activities of

Village-Owned Enterprises are carried out. It is

located in Segaramakmur Village, Tarumajaya

District, Bekasi Regency, West Java Province. The

time used for observation is around 3 (three) months.

From the results of these observations, the author

obtained information about Village-Owned

Enterprises activities. So the author knows the

governance system up to the Operational Standards

for Village-Owned Enterprises, and other

empowerment programs, i.e lease of sports halls,

multi-purpose buildings, savings and loans.

Second, an interview is a

conversation/communication consisting of two or

more people aimed at obtaining more in-depth

information and data so as to achieve certain goals.

In this research, researchers conducted interviews

with the administrators of Segaramakmur Village-

Owned Enterprises and the Segaramkmur Village

Government. The authors interviewed from the

Village-Owned Enterprises management, were the

director and secretary of Village-Owned Enterprises,

and also interviewed the Head of Segaramakmur

Village. Third, documentation, which is an

additional data that is needed can be taken from

documents, archives, notes, relevant online articles

related to the implementation of empowerment and

village women through groups. The author uses

documentation data to add evidence from the results

of observations and data analysis.

4 RESULTS AND DISCUSSION

In order to provide clear and detailed results,

researchers used implementation theory by Van

George C. Edward III. According to Edward III,

communication is the most important aspect in

policy implementation. The communication in

question is the delivery of messages from policy

makers to message recipients, namely policy

implementers, through certain objectives. The

purpose of conveying a clear message is to avoid

misunderstandings about the substance of the policy,

which can lead to errors in interpreting. Therefore,

communication is very important to achieve policy

implementation goals. Communication refers to the

conveyance of information, ideas, skills, rules, and

other items to those who receive them through

various means.

Secretary of Segaramakmur Village-Owned

Enterprises, Dedi, explained that Segaramakmur

Village started communication by conveying its

empowerment program policies in the form of

activity proposals addressed to the Village

Government, in order to obtain a participation

budget for the continued program implementation.

So the communication that Village-Owned

Enterprises has carried out with the village

government has been good. However, Village-

Owned Enterprises communication as the

implementation of a policy has not provided direct

communication to the community. So Village-

Owned Enterprises is less active as implementers.

Meanwhile, policy implementation will be effective

because there is communication to coordinate with

various parties, with implementation having to be

consistent and clear. For this reason, it is appropriate

for Segaramakmur Village-Owned Enterprises to

improve communication patterns, because accuracy

and clarity of communication is the main thing.

Especially in implementing programs. However, a

policy or program can be implemented because there

is coordination with one another. So that

implementation instructions can be easily

understood and clear.

Something that also be considered in

implementation is resources. Having adequate

resources is a strength for the implementation of

Village-Owned Enterprises programs. Resources

include human Capital and financial, both of which

are mutually dependent variables. In terms of human

resources, the management of Segaramakmur

Village-Owned Enterprises has placed its

management members according to their respective

fields of expertise, according to their experience and

educational background at the high school level.

Resources who are experienced in this field, for

example, a Village-Owned Enterprises administrator

who previously worked in finance at a cooperative,

the person is placed in accordance with an

empowerment program that resembles their field.

There is also an administrator who really

understands the field of event organizing as an

empowerment program for Village-Owned

Enterprises, because this person has been involved

in this field for a long time. So, it is hoped that it

will be in accordance with the fields and abilities of

each Village-Owned Enterprises administrator in

carrying out the implementation of community

empowerment program through this Village-Owned

Enterprises. In accordance of the Secretary of

Village-Owned Enterprises statement, Dedi, Village-

Owned Enterprises administrators are from the

minimum education of high school. In terms of

mastery of the field, several administrators have

been placed with programs according to their fields.

Village-Owned Enterprises as an Effort to Empower Community in Segaramakmur Village Bekasi

Disposition is the characteristics possessed by

the implementor, such as commitment,

understanding, authority and perception of the

implementor. As previously discussed in theory, the

character of Village-Owned Enterprises member is

someone who can carry out their role in the policy

program. The appointment of Village-Owned

Enterprises management is in accordance with the

capabilities of its human resources. In accordance

with the beginning of recruitment, Segaramakmur

Village-Owned Enterprises selected members who

had expertise that can be placed according to the

field. Apart from that, there are also people who help

in the Village-Owned Enterprises program activities.

However, in the implementation of the

disposition pattern in Village-Owned Enterprises,

there was conflict between the implementing actors,

namely the Village-Owned Enterprises

administrators felt that there were differences of

opinion regarding the election of the Village Head.

As explained by the Secretary of Segaramakmur

Village-Owned Enterprises, Dedi, there are

administrators who can be said to be experts in their

fields, because there are slight differences in the

selection of Village Heads, which disrupts working

relationships within the Village-Owned Enterprises

management. It is appropriate for the policy

implementers of the Segaramakmur Village-Owned

Enterprises program to be able to understand the

conditions existing in society, without prioritizing

their individual egos. Because remembering the

importance of implementing program policies for

the ongoing empowerment of village communities.

such as understanding consumers demand.

The bureaucratic structure is the implementer of

a policy by carrying out appropriate coordination. In

implementing a policy or program, the concern is the

performance of the members, that is, the

implementers must do the program in accordance

with the Standard Operating Procedure (SOP). In

this case, it means that Village-Owned Enterprises

has a big influence in realizing the implementation

program. However, in its implementation, policy

implementers lack the initiative to be able to

coordinate with other institutions. In order to obtain

guidance, input and training that supports and build

community empowerment must be done. So it could

be said that Village-Owned Enterprises

administrators are less active in collaborating, and

their bureaucratic structure needs to be improved.

It can be concluded that there are weaknesses in

the bureaucratic structure of Segaramakmur Village-

Owned Enterprises. Because there are deficiencies in

the characteristics of program implementers, the

characteristics of which are strict and disciplined

implementers, and require good cooperation

between program implementers and other agencies.

This causes other resources to be ineffective.

4.1 Supporting Factors and Inhibiting

Factors

The program sustainability, whether large or small

scale, can occur by paying attention on two

elements, inhibiting factors and supporting factors.

This has been observed when planning activities

which aim to predict the extent of the results

achieved and minimize failure in implementing

activities future. The following are the supporting

and inhibiting factors for implementing the

Segaramakmur Village-Owned Enterprises

empowerment program according to Van George C.

Edward II's theory.

The necessary factors aimed at supporting the

smooth and successful implementation of

community empowerment through Segaramakmur

Village-Owned Enterprises is the existence of good

communication between Village-Owned Enterprises

administrators, the community, and the village

government. This communication is useful for

conveying empowerment program policies in the

form of activity proposals addressed to the Village

Government, in order to obtain a participation

funding budget from them. Effective communication

is also carried out to coordinate with various parties,

the implementation must be consistent and clear.

And of course, have resources placed according to

their experience and educational background. As

well as developing skills, resources that contribute to

implementing policy implementation must be native

to Segaramkmur Village.

However, there are times when people feel that

this Village-Owned Enterprises is less active in

socializing with the community and outside the

Village-Owned Enterprises environment. So it is felt

that Village-Owned Enterprises Segaramakmur lacks

relationships to add to community empowerment

programs. Don't forget that inadequate financial

resources can hamper an empowerment program

owned by Village-Owned Enterprises. There are

other obstacles that are not included in the indicators

according to Van George C. Edward II 's theory ,

namely the existence of internal conflicts that make

program policy implementers or Village-Owned

Enterprises administrators. There are differences of

opinion in the selection of village head candidates,

so that there are Village-Owned Enterprises

administrators who cannot continue to join the

ISCP UTA ’45 JAKARTA 2023 - THE INTERNATIONAL SEMINAR AND CALL FOR PAPER (ISCP) UTA ’45 JAKARTA

management, which causes Village-Owned

Enterprises to lack expert staff. Plus a lack of public

awareness regarding discipline in paying

installments in savings and loan programs. So the

program is hampered by further capital.

5 CONCLUSIONS

Based on the results and discussions, the process of

Empowerment Program through the Segaramakmur

Village-Owned Enterprises is influenced by four

variables, namely communication, resources,

disposition and bureaucratic structure. So

researchers can draw the following conclusions.

First, communication between the implementers,

the Village-Owned Enterprises members and village

officials, is good but communication and

interactions with others, like the community, have

not been very active. It's a shame that the current

communication still feels less than optimal. It only

seems one way, namely with the village government

as capital investment. In fact, this effective

communication is carried out so that the

implementing committee and actor know and can

coordinate in achieving the plans or agenda of

Segaramakmur Village-Owned Enterprises. The

information that has been communicated can be

understood clearly and it is hoped that they will be

able to work together well in the future.

Second, the existence of adequate resources is a

strength for the implementation of Village-Owned

Enterprises programs. In its management, the

members of Village-Owned Enterprises have placed

someone according to their respective fields of

expertise and education. However, it is felt that it

still cannot be said to be successful in its

implementation. Apart from that, financial resources

are also important to support policy facilities. If

there are financial resource constraints, the

empowerment program will be less effective.

Third, disposition. It is the character and

characteristics possessed by the implementer, such

as commitment and honesty. The Segaramakmur

Village-Owned Enterprises program implementer,

Segaramakmur Village is able to understand the

conditions existing in the community, with the skills

possessed by the Segaramakmur Village-Owned

Enterprises policy implementer.

Fourth, the bureaucratic structure shows that

there are very complex policies that require

collaboration with many people and how to

implement program policies in accordance with

Standard Operating Procedures (SOP). Weaknesses

in the bureaucratic structure of Village-Owned

Enterprises, policy implementers who lack

coordination with other institutions in order to obtain

guidance, input and training, that supports and can

build community empowerment. So it could be said

that Village-Owned Enterprises administrators are

less active in collaborating, and their bureaucratic

structure needs to be improved.

Supporting factors and inhibiting factors in this

community empowerment program are as follows.

First, communication with the Segaramakmur

Village Government went well by making a proposal

containing an empowerment program to obtain

capital participation. Human resources are supported

by qualified staff and community involvement in the

process of implementing community empowerment

policies. Besides human resources, financial

resources are supported by capital participation

funds from the Village Government.

Recruitment of Village-Owned Enterprises

members is carried out by looking at their level of

education and skills, as well as residing in

Segaramakmur Village. The Segaramakmur Village-

Owned Enterprises has a Standard Operation

Procedure (SOP) in each of its policy programs to

make each activity more structured. Apart from that,

there are factors that hinder the implementation of

empowerment programs. The Segaramakmur

Village-Owned Enterprises is less active in

socializing with the community, resulting in minimal

relationships to add to programs. The business

capital owned by Segaramakmur Village-Owned

Enterprises is still minimal, which has resulted in

delays in implementation, especially the savings and

loan program. In the implementation of Village-

Owned Enterprises, there were differences of

opinion in a village head election which resulted in

administrators resigning.

After carrying out the research, researchers put

forward several suggestions. First, the actors

implementing the community empowerment

program in Segaramakmur Village through Village-

Owned Enterprises always continue to evaluate and

study theories about community empowerment, so

that they can continue to strive, to develop better

empowerment program policies. Apart from that, it

is hoped that good cooperation will be required

between program policy implementers and other

agencies. So that other resources can be made

effective. As well as strict and disciplined

implementation.

Second, the Segaramakmur Village Government

has to continue providing or supporting in the form

of capital funds, continue to review program and

Village-Owned Enterprises as an Effort to Empower Community in Segaramakmur Village Bekasi

activities, so that able to jointly study and evaluate

the implementation of empowerment policies

through Village-Owned Enterprises for the better.

Third, always maintain good relationships and

cooperation with policy implementers of the

Segaramakmur Village community empowerment

program. Forth, the Management of Village-Owned

Enterprises has to maintain good relationships with

parties who have supported the successful

implementation of empowerment program,

especially maintaining solidarity with members of

Segaramakmur Village-Owned Enterprises.

Fifth, the Management of Village-Owned

Enterprises has to improve the roles and

responsibilities so that the members' knowledge

abilities become better. Sixth, the Management of

Village-Owned Enterprises has to build a conducive

environment to always achieve the vision and

mission of Segaramakmur Village-Owned

Enterprises. Seventh, the Segaramakmur Village

Community has to increase awareness of being

disciplined and responsible for following

empowerment program policy implementation

activities in accordance with Standard Operating

Procedures (SOP).

Based on direct data collection in this research,

there is limitation and opportunities for future

research. This research mostly obtained data based

on interviews with administrators of Village-Owned

Enterprises and only obtained a limited perspective

from the community, making it possible that the

answers obtained were less comprehensive. Several

opportunities for future research can be carried out

by comparing Village-Owned Enterprises from two

regions with different socio-economic conditions,

examining the role of Village-Owned Enterprises in

alleviating village poverty, or examining the role of

Village-Owned Enterprises in gender-based

economic development

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