Wednesday, 19 June 2019 | 09:38 WIB

The Ministry of Village Has Initiated 100 Joint BUMDes Nationwide

Illustration: BUMDes

PARIAMAN, NNC - The Ministry of Village, Development of Disadvantaged Region and Transmigration has initiated nearly 100 joint Village-Owned Enterprises (BUMDes) in Indonesia.

"We hope that the BUMDes will become a model for other villages," said Director General for Development of Rural Areas of the Ministry of Village Harlina Sulistyorini during a BUMDes coordination meeting of Pariaman City in Pariaman, Wednesday (02/13/2019).

Harlina explained that the Joint BUMDes are a business entity that is run together by a number of villages by utilizing the village potential.

The Joint BUMDes are formed because they are considered more economical and easier to develop than ordinary ones.

This is because BUMDes usually have the potential for business warfare between one village and another thus hampering the development of village business entities.

"So, we can reduce the occurrence of cannibalism between inter-village businesses," she said.

Harlina added the 100 Joint BUMDes had various businesses such as tourism and agriculture which had earned up to IDR100 million per month.

She said the West Sumatra had begun forming a Joint BUMDes, namely in Pesisir Selatan Regency which managed the Mandeh Tourism Area.

"The Pesisir Selatan is still the forerunner because it was only formed last year," Harlina said as quoted by Antara.

Meanwhile, Mayor of Pariaman Genius Umar said that he had set several areas to be developed in accordance with their potential including tourism, micro, small and medium enterprises (MSMEs), and agriculture.

"So, one regional business is formed from several villages," he said.

Some villages in each of these areas can form Joint BUMDes, so as to increase village income.

He said that one of the potential areas for Joint BUMDes is in South Pariaman whose eight villages are traversed by the Batang Mangur River and can be managed as white water rafting attractions.

The Pariaman City Government is also utilizing the Batang Mangur River to become a tourist attraction, so it is hoped that the village will also support it.

"With the development of tourist objects there, MSMEs will appear around the tourist sites," he added.