Peran Badan Usaha Milik Desa (BUM Desa) Untuk Menambah Pendapatan Masyarakat Desa Ngrancang Kecamatan Tambakrejo Kabupaten Bojonegoro

Abstract

Purpose: The purpose of this study was to analyze the role of Village Owned Enterprises (BUM Desa) in increasing people's income in Ngrancang Village, Tambakrejo District, Bojonegoro Regency.

Methodology/approach: This research focuses on knowing the role of BUM Desa in its efforts to increase community income in accordance with the village's local economic activities. Looking at the BUM Desa data on the Ministry of Village website regarding the ranking of BUM Desa/BUM Desa Bersama, specifically in the Tambakrejo District area there are 18 villages, of the 18 villages, 7 villages have Pioneer status, 2 are Beginner villages, 9 are Developing villages. BUM Desa "Mukti Raharjo" is one of 9 villages with a developing status and contributes PAD every year. This raises research interest, whether the BUM Desa "Mukti Raharjo" also has a role in Community Empowerment. In this study using qualitative methods with interviews and document analysis as data collection instruments. The research respondents consisted of members of BUM Desa, heads of BUM Desa, and the community involved in income generation programs while the theory used local economic theory developed by Michael Shuman and Gar Alperovitz: Shuman and Alperovitz jointly developed the concept of "building community wealth" which focuses on developing and centralizing economic wealth in local communities.

Results/findings: The results of the study show that BUM Desa plays a role in providing additional income to rural communities through businesses in the livestock sector, with the development of this business, the income of rural communities can increase. Then also provide access to business capital through low interest financing programs. With this economic empowerment, rural communities can optimize their economic potential and increase their income in a sustainable manner.

Keywords: Role, Village Owned Enterprises (BUM Desa), Community Income, Economic Welfare, Local Economic Theory