Implementation of Good corporate Governance Principle in the Management and Accountability of Village-Owned Enterprises

Abstract

Referring to Law Number 6 of 2023 concerning Job Creation, one of the objects of regulation is Article 87 of Law Number 6 of 2014 concerning Villages, where the Law is the legal basis for establishing BUM Desa in Indonesia. BUM Desa is regulated as a legal entity, so it requires professional management and accountability and applies the principles of good corporate governance so that BUM Desa can play a role in accordance with the mandate of the Village Law. In this regard, one BUM Desa that is growing quite rapidly in Malang Regency is BUM Desa ARMADA owned by Palaan Village, Ngajum Sub-district, Malang Regency. However, it cannot be denied that its management still has some problems. This study aims to determine how BUM Desa Armada conducts management and accountability of BUM Desa management in accordance with the general principles of good corporate governance and is legally analyzed. The results showed that BUM Desa Armada still needs a strategic and inclusive arrangement regarding strengthening human resources, BUM Desa management, selection of types, and business units to accountability in the field of business results. The suggestion that researchers want to give to BUM Desa ARMADA is to strengthen the synergy between BUM Desa implementing organizations and form an internal risk management committee so as to minimize potential business losses.