Regional Development Planning Strategy Through the Integration of Strengthening Village-Owned Enterprises and the Transparency Utilisation of Village Funds

Abstract

The administration of village funds in Indonesia is crucial for fostering local economic growth in accordance with the principles of good governance. The community-Owned Enterprise (BUMDes) is a primary tool for optimising the utilisation of community revenues. This study seeks to examine options for enhancing BUMDes via integration with regional development planning, concentrating on Bireuen Regency, which possesses significant potential in agriculture, marine, and tourism sectors. The employed methodology is a qualitative study utilising a descriptive-analytical technique grounded in secondary data, encompassing regulations, governmental papers, academic literature, and statistical information pertinent to the advancement of BUMDes in Bireuen. The findings indicate that while the quantity of BUMDes in Bireuen rose from 326 units in 2019 to 356 units in 2021, a disparity persists between the number of villages and the active BUMDes. This data suggests that the primary issue pertains not just to the quantity of BUMDes but also to the quality of governance and sustainability. The primary issues encountered consist of inadequate planning, insufficient transparency about the utilisation of village funds, and constrained human resource capabilities. Nonetheless, the ample local potential presents significant chances for village business growth, particularly through the utilisation of village finances for agriculture, fisheries, and processed products rooted in local knowledge. This study establishes that the incorporation of BUMDes enhancement into regional development planning is an essential method for attaining economic autonomy in villages of Bireuen Regency. The execution of this strategy necessitates unwavering policy endorsement, clear oversight, robust business planning, and enhanced managerial competence. Consequently, BUMDes can operate effectively as a catalyst for rural economic advancement, enhance community autonomy, and exemplify the implementation of ethical governance principles at the local tier.