Collaboration between Village Government, Private Enterprise and Bumdes in Community Economic Empowerment in Sungai Payang Village Kutai Kartanegara Regency

Abstract

The establishment of Payang Sejahtera Village-Owned Enterprise (BUMDes) through Village Regulation Number 08 of 2016 was intended to legalize its operational mechanisms in order to enhance village economic self-reliance. However, a major challenge arises from the gap between the formal regulatory framework of village autonomy and the reality of limited managerial capacity, weak synergy among government policies, private sector interests, and constrained economic access for vulnerable groups. This study aims to analyze a collaborative model capable of addressing these socio-economic barriers through the strengthening of the role of BUMDes. This study employs a qualitative approach with a descriptive method. Data were collected through observation, in-depth interviews, and documentation studies, and were analyzed through the stages of data reduction, data display, and conclusion drawing and verification. The findings indicate that the management of BUMDes has successfully empowered the local economy through a comprehensive approach. BUMDes management focuses on strategic partnerships with the private sector, adaptive diversification of business units, and professional governance. The collaborative strategy implemented has proven to be highly effective, beginning with the strengthening of initial conditions through a clear legal foundation and community participation, followed by inclusive dialogue forums for decision-making. This strategy has resulted in economic and social sustainability, as proven by increased revenue, employment absorption, and adaptability to changing conditions. Four key factors underpin the implementation of empowerment efforts: strong and transparent leadership, clear standards and targets, strategic partnerships with industry, and attention to the socio-economic conditions of the community, especially vulnerable groups. Visionary leadership plays a crucial role in synergizing multiple stakeholders, while rigorous operational standards ensure program quality. Partnerships with industry create new business and employment opportunities, significantly increasing community income. Overall, this collaborative governance and management framework enables BUMDes Payang Sejahtera to overcome socio-economic challenges and to foster an equitable and sustainable village economic ecosystem.