Analysis of Village-Owned Enterprise (BUMDes) Management Strategies in Increasing Village Original Income: A Case Study of BUMDes in Medan Krio Village

Authors

  • Bima Andika
  • Fitri Hayati
  • Atika

DOI:

https://doi.org/10.26905/jbm.v13i1.17984

Keywords:

management strategy, village own-source revenue (PADes, village-owned enterprise (BUMDes)

Abstract

This study aims to analyze the management strategies of the Village-Owned Enterprise (BUMDes) "Bintang Medan Krio" in increasing the Village's Own-Source Revenue (PADes) in Medan Krio Village, Sunggal District, Deli Serdang Regency. The study employs a qualitative approach with a descriptive research design. Data were collected through observation, interviews, and documentation involving informants selected via purposive sampling—specifically, the Head of Medan Krio Village and BUMDes administrators. Data analysis utilized the interactive model developed by Miles, Huberman, and Saldana, comprising data condensation, data display, and conclusion drawing/verification. The strategy analysis is grounded in Fred R. David’s strategic management theory, which encompasses three stages: strategy formulation, strategy implementation, and strategy evaluation. The results indicate that during the strategy formulation stage, the BUMDes considers village potential, community needs, financing requirements, cost-benefit analysis, and competitive conditions when determining and developing business units. In the implementation stage, strategies are executed through the delegation of authority to unit heads, human resource management, capital support and village government oversight, community involvement, marketing, and budget management. Meanwhile, evaluation is conducted through weekly monitoring, monthly financial reporting, periodic assessments, guidance or replacement of managers, and the application of cross-subsidies between business units. The implementation of these strategies has positively impacted the BUMDes's performance and its contribution to the village's own-source revenue (PADes). The BUMDes profit increased from IDR 24,449,608 in 2024 to IDR 66,423,707 in 2025. In accordance with the Articles of Association and Bylaws (AD/ART), 35% of the operating profit is allocated to Village Original Revenue (PADes); consequently, the BUMDes contribution is projected to rise from IDR 8,557,363 in 2024 to IDR 23,248,297 in 2025. Nevertheless, challenges persist, including high operational costs in the sheep farming business, competition facing the village Wi-Fi and refillable drinking water units, and limited human resources across several business units. Therefore, strengthening human resource capacity, conducting a more systematic mapping of internal and external conditions, and utilizing measurable performance indicators are essential to enhance business sustainability and the BUMDes contribution to PADes.

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Published

2026-11-02

How to Cite

Andika, B., Hayati, F., & Atika. (2026). Analysis of Village-Owned Enterprise (BUMDes) Management Strategies in Increasing Village Original Income: A Case Study of BUMDes in Medan Krio Village. Jurnal Bisnis Dan Manajemen, 13(1), 229–236. https://doi.org/10.26905/jbm.v13i1.17984