STRATEGIC ALIGNMENT OF VILLAGE-OWNED ENTERPRISES (BUMDes): AN EVALUATION OF VILLAGE POTENTIAL IN BANYUMAS, INDONESIA

Abstract

This research evaluates the strategic alignment between inherent village resources and the operational sectors of Village-Owned Enterprises (BUMDes) in Indonesia to address the widespread stagnation in performance in rural economies. Employing a descriptive qualitative research design, the study synthesized field data from various villages in Banyumas Regency, Central Java, with a comparative analysis of institutional business models. The results reveal a significant "strategic disconnect" in several locations, such as Kemutug Lor and Purwosari, where BUMDes operations focus on generic public services like water management while ignoring high-value local potentials in dairy production and creative handicrafts. Major findings indicate that this mismatch is driven by administrative risk aversion and a lack of entrepreneurial leadership, thereby preventing BUMDes from achieving optimal economies of scale. The study concludes that the quantitative proliferation of BUMDes has not been matched by qualitative strategic mapping, leading to capital inefficiency. To foster sustainable rural development, BUMDes must transition from mere service providers to resource-based entrepreneurs who align their business activities with specific geographical and social assets.