Collaboration Strategy for Building Village Communities through Economic Empowerment in BUMDes Business Units


  • Sigit Purnomo Graduate School of Leadership and Policy Innovation, Universitas Gadjah Mada, Yogyakarta
  • Muhadjir Darwin Faculty of Social and Political Sciences, Universitas Gadjah Mada, Yogyakarta
  • Irwan Abdullah Faculty of Cultural Sciences, Universitas Gadjah Mada, Yogyakarta
  • Dewi Haryani Susilastuti Graduate School of Leadership and Policy Innovation, Universitas Gadjah Mada, Yogyakarta



role of stakeholders, collaborating stakeholders, BUMDes, economic improvement, community empowerment


Background: The Law on Villages mandates that the nature of village development is as an effort to improve the quality of life for the maximum welfare of the village community. It indicates that village development must involve village communities in an empowerment pattern.

Aim: This study aims to determine the role of collaborating stakeholders in the community empowerment for the economic welfare of the Panggungharjo village, identify the implementation of community empowerment as a basis for improving the community’s economy through BUMDes there, and identify the success level of collaboration in economic empowerment as a strategy to build excellent and sustainable village communities there.

Method: The research employed qualitative approach with descriptive methods. The data collection methods was interview with informants in Panggungharjo Village and documentation.

Findings: The collaborative role of stakeholders in community empowerment can encourage the successful management of BUMDes and improve the economic welfare of the village. The implementation of community empowerment as a basis for increasing the community’s economy through BUMDes in the village has involved community participation to become actors in BUMDes activities, in which the community involvement is substantial in all BUMDes business units. The collaboration in economic empowerment within BUMDes forum can be successful based on the achievements of BUMDes, namely the rapid increase in Village Locally-Generated Income (PAD) and the income of BUMDes which is consistently increasing, the number of business units in the BUMDes has grown, and the number of BUMDes business units has increased people’s income and absorb workforce.


Antlöv, H., Wetterberg, A., & Dharmawan, L. (2016). Village governance, community life, and the 2014 village law in Indonesia. Bulletin of Indonesian Economic Studies, 52(2).

Cristina, H. M. (2020). Community empowerment program to increase community income in Sitimulyo Village, Piyungan District, Yogyakarta. Jurnal Penelitian Humaniora, 21(2).

Dhewanto, W., Ratnaningtyas, S., Permatasari, A., Anggadwita, G., & Prasetio, E. A. (2020). Rural entrepreneurship: Towards collaborative participative models for economic sustainability. Entrepreneurship and Sustainability Issues, 8(1).

Haekase, Y. E., Nursalam, N., & Toda, H. (2020). The effectiveness Village-Owned Enterprises (BUMDes) Sehati in Nekmese Village Amarasi Sub-District, South Kupang Regency. Journal of Sustainable Tourism and Entrepreneurship, 1(3), 217–230.

Hartojo, N., Ikhsan, M., Dartanto, T., & Sumarto, S. (2022). A growing light in the lagging region in Indonesia: The impact of village fund on rural economic growth. Economies, 10(9), 217.

Ismail, I., Hidayat, Y., & Yunani, A. (2022). Effectiveness of village fund management in community empowerment. International Journal Political, Law, and Social Science, 3(1).

Khairani, L., Ramlan, R., & Pulungan, D. R. (2021). Economic empowerment based on the strengthening of social capital in the implementation of village-owned enterprises. Masyarakat, Kebudayaan Dan Politik, 34(2).

Kushandajani, Yuwono, T., & Fitriyah. (2020). A study of leadership in the management of village development program: The role of local leadership in village governance. Talent Development & Excellence, 12(3).

Manalu, F. B., & Purwoko, A. (2018). Analysis of implementation of village fund programs empowerment of community in Boang Manalu Village, Salak Sub District, Pakpak Bharat Regency. International Journal of Research, 5(20).

Nicolaides, A. (2020). Sustainable ethical tourism (SET) and rural community involvement. African Journal of Hospitality, Tourism and Leisure, 9(1).

Papilaya, E. C. (2007). Wacana pembangunan alternative. Ar-Ruzz Media.

Purwani, T., & Arvianti, I. (2020). The economic empowerment model of multicultural society. Proceedings of the 2nd Tarumanagara International Conference on the Applications of Social Sciences and Humanities (TICASH 2020).

Roidatua, M. R., & Purbantara, A. (2022). Collaborative governance in developing smart village. RUSET 2021: Proceedings of the 2nd International Conference on Rural Socio-Economic Transformation: Agrarian, Ecology, Communication and Community Development Perspectives, RUSET 2021, 14-15 September 2021, Bogor, West Java, Indonesia, 252.

Sofi, K., & Mutiarin, D. (2018). Collaborative governance in the management of village owned enterprises Ponggok Sub District Polanharjo District Klaten Central Java 2016. Journal of Government and Civil Society, 2(2).

Sofyani, H., Atmaja, R., & Rezki, S. B. (2019). Success factors of village-owned enterprises (BUMDes) performance in Indonesia: An exploratory study. Journal of Accounting and Investment, 20(2).

Sudiarso, R., & Isnaini, I. (2022). Strategy of village owned enterprises (Bumdes) in increasing village original income (Pades) Gresik Regency. Indonesian Journal of Cultural and Community Development, 11, 10–21070.

Sunarsi, D., Maddinsyah, A., & Kristianti, L. S. (2021). Analysis of the effectiveness of village funds in independent village development efforts. The 1st International Conference on Research in Social Sciences and Humanities (ICoRSH 2020), 195–203.

Sutriadi, R. (2018). Defining smart city, smart region, smart village, and technopolis as an innovative concept in indonesia’s urban and regional development themes to reach sustainability. IOP Conference Series: Earth and Environmental Science, 202(1).

Yudha, E. P., Juanda, B., Kolopaking, L. M., & Kinseng, R. A. (2020). Rural development policy and strategy in the rural autonomy era: Case study of Pandeglang Regency-Indonesia. Human Geographies, 14(1).