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Analysis of the Reformulation of BUMDes Governance Regulations in the Perspective of Good Village Governance

Year: 2026
Type: article
Abstract: Role of Village Owned Enterprises (Badan Usaha Milik Desa or BUMDes) as a driver of local economic development constitutes a crucial element in achieving sustainable village autonomy. However, in practice, the current regulatory framework governing BUMDes in Indonesia still faces significant normative and implementation challenges that hinder the realization of Good Village Governance (GVG) principles. Weak regulatory structures, overlapping authorities, and limited accountability and transparency have led to the underperformance of BUMDes as autonomous, participatory, and sustainable village economic entities. This gap between legal ideals and implementation realities forms the core issue of this research. This study aims to analyze the weaknesses in the existing regulatory framework of BUMDes governance from the perspective of Good Village Governance and to formulate an ideal reformulation model that strengthens BUMDes governance. The research employs a normative legal method combined with statutory, conceptual, and comparative approaches, complemented by limited empirical analysis through case studies in selected villages that have actively developed BUMDes institutions. The findings reveal that the current legal framework for BUMDes has not yet fully embraced GVG principles, particularly in terms of transparency, accountability, and community participation. The reformulation of regulation should therefore emphasize strengthening the legal status of BUMDes as a public legal entity, establishing participatory supervision mechanisms, and restructuring the institutional relationships among village governments, village consultative bodies, and BUMDes management. The implications of this study provide normative recommendations for policymakers to design more responsive and principle based BUMDes regulations that support equitable and sustainable village economic independence.
DOI: 10.38035/jlph.v7i1.3959
Language: English
Open Access status: diamond
OpenAlex ID: W7225611411
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