A recent study published in the Journal of Legal Horizons highlights the pressing need for improved management and accountability in Village-Owned Enterprises (BUM Desa) in Indonesia. Led by Dewi Ambarwati from the Faculty of Law at the University of Islamic Raden Rahmat, the research focuses on BUM Desa Armada, examining how these entities can better implement good corporate governance principles.
The legal framework for BUM Desa is established by Indonesian law, yet many of these enterprises face challenges that hinder their effectiveness. According to the study, “BUM Desa Armada still requires strategic and inclusive arrangements regarding strengthening human resources, management of BUM Desa, selection of types, and business units to accountability in the field of business results.” This indicates a significant gap in the operational capabilities of these enterprises, which are intended to foster local economic development.
For the energy sector, the implications are noteworthy. BUM Desa can play a crucial role in local energy initiatives, such as renewable energy projects or energy efficiency programs. By enhancing the governance and management of these enterprises, there is an opportunity to develop sustainable energy solutions that meet local needs while also contributing to national energy goals. Improved accountability and strategic planning could lead to more effective investment in energy resources, ultimately benefiting local communities.
The research also emphasizes the necessity for BUM Desa to establish an internal risk management committee. This could help minimize potential business losses and enhance the overall viability of energy-related projects. As the study suggests, strengthening the synergy between BUM Desa and implementing organizations is vital for realizing these opportunities.
In summary, the findings from Ambarwati and her colleagues underscore the potential for BUM Desa to significantly impact local economies and the energy sector, provided they adopt stronger governance practices. This research, published in the Journal of Legal Horizons, serves as a call to action for policymakers and stakeholders to support these enterprises in their quest for better management and accountability.
