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Original Research

THE LEGAL POLITICS OF THE ESTABLISHMENT OF BUMDES AS ONE OF THE STRATEGIES TO IMPROVE THE QUALITY OF LIFE OF INDONESIAN PEOPLE IN VILLAGES

SARKAWI

Vol 18, No 12 ( 2023 )   |  DOI: 10.5281/zenodo.10444530   |   Author Affiliation: Faculty of Law, University of Mataram, St. Majapahit No. 62 Mataram, West Nusa Tenggara.   |   Licensing: CC 4.0   |   Pg no: 1681-1696   |   Published on: 29-12-2023

Abstract

The village has a source of income consisting of original village revenue, revenue sharing of regional taxes and regional levies, central and regional financial balance funds, allocation of the State Budget, and financial assistance from Provincial and Regency / City regions, as well as non-binding grants and donations from third parties. However, the problem is that the budget is not enough to finance all village development needs, let alone financial assistance from the Province and Regency / City to the Village is given in accordance with the financial capacity of the Regional Government concerned. If the region has little financial capacity, then the assistance provided is small or even no assistance at all because the condition of the area is not able, so that the acceleration of village development becomes difficult to implement. One of the efforts toimprove village development and development lies in the Optimization of Sources of Income or PAD which is used as a support and driver in the implementation of village government, namely by optimizing the potential of Village-Owned Enterprises (BUMDES) as the main element of increasing village income in Indonesia. Village-Owned Enterprises are business entities whose entire or most capital is owned by the Village through direct participation derived from separated Village wealth to manage assets, services, and other businesses for the maximum welfare of the village community, such as Village market management, Village-scale tourism area management, non-metal mineral mining and rock mining without use heavy equipment, as well as other sources that are not for sale. Therefore, the issues discussed in this article are about the legal basis for the presentation of BUMDES, Types of Businesses and Differences in the Principles of Village-Owned Enterprises and The Legal Politics of The Establishment of Bumdes As One of The Strategies to Improve the Quality of Life of Indonesian People in Villages.


Keywords

Legal Politics, Establishment of Bumdes, Quality of Life, Indonesian People, Villages.