CosmoGov: Jurnal Ilmu Pemerintahan P-ISSN 2442-5958

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Vol.xx, No.xx, 201x

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GOVERNANCE VILLAGE OWNED ENTERPRISES 
Studies in BUMDes Danar Garut

Rifqi Abdul Hafidh1

1
Master of Public Administration Program, Padjajaran University, Bandung,
Indonesia.

Email: rifqiabdulhafidh@gmail.com

Submitted: December 15, 2019, Reviewed: January 21, 2019, Published: ………..

ABSTRAK
Penelitian ini berfokus pada pembahasan tata kelola Badan Usaha Milik Desa
(BUMDes) Danar di Kabupaten Garut. Praktik ini menunjukkan bahwa
pengelolaan BUMDes oleh pemerintah desa masih pada tahap pengembangan.
Pengelolaan BUMDEs Danar Garut secara umum dapat dikatakan baik, walaupun
terdapat beberapa pratik yang menyimpang. Penelitian ini menggunakan konsep
Good Corporate Governance, dengan mengandalkan lima variabel sebagai pisau
analisis pengelolaan BUMDes yaitu Transparasi, Akuntabilitas, Responsibilitas,
Kemandirian, dan kesetaraan. Teknik pengambilan data pada penelitian ini
melalui wawancara, observasi, dan dokumentasi. Hasil penelitian ini
menunjukkan pertama, bahwa secara umumu pengelolaan BUMDEs Danar telah
baik. Praktik pengelolaan bumdes oleh pengurus, telah memenuhi hampir
keseluruhan varibel yang digunakan. Kedua, kehadiran BUMDes danar Garut
memberikan banyak kebermanfaatan bagi masyarakat. Ketiga, kendati
pengelolaan telah berjalan cukup baik, berdirinya BUMDes danar Garut tidak
berdasarkan inisiasi masyarakat desa, melainkan pihak ketiga yang menjadi motor
penggerak berdirinya BUMDes. Pada penelitian ini, peneliti menyimpulkan
bentuk pengelolaan yang dilakukan oleh BUMDes danar yang mungkin akan
dapat dilakukan pada BUMDes lain.

Kata Kunci: BUMDes, Tata Kelola, Danar, Good Corporate Governance, Desa.
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E-ISSN 2540-8674

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Doi: 10.24198/cosmogov.v2i2.xxxxx
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ABSTRACT
This research focuses on the discussion of the governance of business entity
belonging to the village (BUMDes) Danar in Garut. This practice shows that the
management of the BUMDes by the Government of the village is still in the
development stage. The management of BUMDEs Danar Arrowroot in General
can be said to be good, although there are some practice distorted. This research
uses the concept of Good Corporate Governance, by relying on five variables as
the knife of analysis Complete research ono BUMDes management , namely
accountability ,responsibility, independence, and equality. Data capture
technique in this study through interviews, observation, and documentation. The
results of this study show that in management BUMDes Danar has been good.
Bumdes management practices by the Executive Board, has met nearly the
entirety of varibel used. Second, the presence of BUMDes danar arrowroot gives
a lot of advantages for the community. Third, although the management has been
running pretty well, founding BUMDes danar arrowroot is not based on the
initiation of the villagers, but third parties become its driving forced BUMDes. In
this study, researchers concluded that management shapes done by BUMDes
danar who will probably be done on other BUMDes.

Keyword: BUMDes, Governance, Danar, Good Corporate Governance, Village.

INTRODUCTION in empowering village communities.

Village as an autonomous
government structure surely has local
scale village authority 1. Other
authorities possessed by the village,
including establishing a business
entity. The establishment of village
business entity, which furthermore is
more familiarly known as Badan
Usaha Milik Desa (BUMDes) is one
way of trying to prosper and
empower local village communities.
Village ability to establish and to
manage BUMDes, becomes a very
insteresting studies seeing its impact
1
Law Number 6 of 2014 About Villages
A numerous amount of topics about
BUMDes, such as its role in
empowering the village community,
analysis of the success of BUMDes
in a village, and its roles in helping
to improve the village economy.
Because of the warm discussion
about BUMDes, the study of the
village and the existence of the
village turns into such a hot issue.
Discussion about BUMDes is indeed
in the middle of bloom, however the
researcher has views and claims that
the discussion on this subject is
limited to the role and impact of
BUMDes.
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The main idea behind the headline of
the problem in this study was
originated from researchers'
observations of the relationship
patterns of BUMDes management
that have not been found in some
cases of BUMDes management
specifically. The theme of BUMDes
governance is considered intriguing
because: First, BUMDes ownership
by more than one village. Researcher
found that originally BUMDes only
owned by one village, then later it
was noticed that BUMDes could be
managed by more than one village.
This phenomenon refers to the
discussion in this study, which
focuses on governance of village
business entities. The term BUMDes
then metamorphosed into Badan
Usaha Milik Antar Desa
(BUMADes), which indicates
business entities at the local / village
scale but owned or established in
cooperation between villages.
Second, there are good
interactions that are carried out by
individuals against the institution, so
that the BUMDes can grow rapidly
beyond the target. Third, there is a
relationship between village
individual especially the village chief
as the authority holder in village
cooperation and a main individual
who drives and initiates BUMDes
with Leles District to grow rapidly as
it is now. Fourth, the influence of
any factors outside the institution
that provides benefits for BUMDes
so that it grows rapidly and is able to
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empower the full potential of villages
in the Leles District.
Research on the BUMDes
Bersama Danar found some new
findings. The first discovery is
BUMDes with financing capital that
comes from private funding.
Referring to the law on villages, the
source of financing for village
BUMDes comes from, the Village's
Original Income (PAD), Grant
Funds, and Village Fund Allocation
(ADD) sourced from the State. This
practice is found in BUMDes
Bersama Danar, where the first
capital came from the joint venture
funds of 12 village chiefs in the
Leles District. Each village chief
handed over a five million rupiah
fund. Funds from each of the village
chief are then used as BUMDes
shares belonging to each village
head. Every month, the village chief
gets a salary of two million rupiah
for the initial shares distributed to
BUMDes. Such practices are new
findings, and do not rule out the
possibility of this practice in other
BUMDes. So that new findings in
this research regarding BUMDes,
will open some new realities in the
field.
RESEARCH METHODS
This study uses qualitative research
methods, which are presented in a
descriptive analysis. The location of
this research is in Garut Regency.
This Reasearch used 2 (two) kinds of
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data which are primary and
secondary data. Primary data used
consisted of interviews with
informants from Danar BUMDes
management, such as commissioners,
directors, and staff in the
management structure. As for the
secondary data, the researcher used
data sourced from BUMDes
Company Profile data, and BUMDes
Accountability Sheet.
Furthermore, the data obtained were
analyzed using Miles and Huberman
analysis which included data
collection, data reduction, data
presentation, and conclusion
drawing.
DISCUSSION
BUMDes Bersama Leles was formed
on September 12, 2014 based on the
agreement of all Village chiefs in the
Leles District of Garut Regency. This
BUMDes Danar oversees all
BUMDes in the villages of Leles
District. The establishment of
BUMDes Bersama Leles is thanks to
the initiation of the chief of
Sukarame Village, namely Bapak H
Asep Basir as the main initiator and
innovator of BUMDes Bersama
Danar Garut. As an entrepreneur
figure, Bapak H Asep Basri seeks to
establish a business entity for his
village, then extends to form a
BUMDes Bersama throughout the
District. As an initiator, he also
actively develops and empowers
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people in Garut Regency. He is often
invited as a speaker and motivator by
various villages in the Garut area as a
resource person about the success of
BUMDes.
Business units contained in BUMDes
Bersama Leles are: the goods
procurement sector and catering
services. BUMDes Bersama Leles in
collaboration with PT Cangsin Reksa
Jaya as a supplier of food and
consumption for company workers.
There are 7000 people recorded as
employees of the factory, BUMDes
Bersama Leles is capable of
providing food for 5000 workers.2
This business unit currently is the
main backbone of BUMDes Danar
Garut, because in its implementation
the village communities in all the
districts were really involved. The
business unit providing catering
services for factory workers certainly
involves the villages incorporated in
BUMDes Bersama Leles. Villages
that are members of the BUMDes
Bersama are involved through the
mechanism of procuring raw goods
that will be processed into food. The
potential of each village is collected
and curated by the BUMDes and sent
to be processed by the canteen for
factory workers. In this business unit
alone, the total BUMDes income
invoice per month could reach 1.4
billion rupiah.3
2
Interview with Bapak Haris Barja as
Director of BUMDes Bersama, on the 5th of
June 2017 at 18.51.
3
Ibid.
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Tabel 1 are monitored and reported to the

commissioners. Access to BUMDes
Business type of BUMDes Danar financial condition can only be done
No Business Explanation with the approval of BUMDes
Unit directors and commissioners, so that
if there is any party who wants to
1. Catering Still Operating
access BUMDes financial condition
Raw Goods
it will be very difficult because it
General
requires the approval of Bumdes
Supplier
directors and commissioners.
2. Healthy Currently
Drinking inactive As for access to the BUMDes
Water financial condition is only limited to
Hexagonal the BUMDes financial condition in
3. Cheap Still operating each village. There is no explicit
Goods openness regarding the financial
Bazaar condition of BUMDes Danar,
Source: data processed by because it is considered dangerous.
researchers. The disclosure form regarding
BUMDes financial condition will be
Some researchers findings see that
presented at the time of the BUMDes
the management of Danar BUMDes,
Danar answer its accountability to
in general can be said to be quite
the village meeting. The
good. The findings are based on the
accountability report which is
results of data obtained by
presented is only limited to general
researchers while in the field, the
income along with expenditure and is
findings include,
not detailed, only limited to the funds
1. Transparancy report used by bumdes danar in
managing the business.
a. BUMDes Bersama financial
conditions access b. Confidentiality of BUMDes
Danar's Financial Income
BUMDes Danar financial condition
report has been listed in the articles The financial condition of BUMDes
of association and bylaws. The Danar is indeed open and accessible
BUMDes articles of association and to the public, but BUMDes Danar's
bylaws points out that the BUMDes financial condition report still has
Danar is responsible for reporting secrecy which cannot be openly
financial conditions to the BUMDes accessed by the public. The secrecy
commissioners. All BUMDes Danar regarding BUMDes financials, for
income and expenditure transactions example, such as BUMDes income
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obtained from business results. There
is no access for any party other than
the official BUMDes Danar
management because it will be
considered to be endangering the
continuation of the village bumdes in
the future.
c. Share Ownership Status
The initial capital of the BUMDes
Danar was originally a grant given
by all village chiefs. The assistance
provided was in the form of a cash of
five million rupiah from each village
chief. The total funds collected from
the village chief's money amount to
sixty million rupiah. The funds were
used as the initial capital of BUMDes
Danar Garut to run the business. The
personal funds expenditure of the
village chiefs used as BUMDes
capital, was used as the shares of
each village head for BUMDes
Danar Garut. According to the results
of the collective decision, the capital
will not be returned, but will be used
as salary for the village chief from
BUMDes profits. Therefore, every
month each village chief gets two
million rupiah worth in cash from the
BUMDes profit.
2. Accountability
a. BUMDes Danar Collective
Regulations
All aspects of BUMDes
Danar have been regulated in a
collective village regulation. This
collective village regulation regulates
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all matters to be run by BUMDes
Danar Garut. This collective
regulation has been approved by all
village chiefs and obeyed by all
stakeholders in BUMDes. In general,
the regulations made are an
extension and an explanation of the
legal basis that covers them. This
joint regulation stems from Law
Number 6 of 2014 concerning
Villages.
b. Danar BUMADEs Management
Recruitment Mechanism
The BUMDes Bersama Leles
management, is chosen by the
commissioners and directors. The
BUMDes Danar management is
certainly a native of the Leles
district. The position in the
management structure was filled by
representatives from each villages in
the Leles district.
At the time, BUMDes Leles
management position is filled by
selected persons trusted by the
commissioners. The recruitment
mechanism of the management does
not go through open registration. The
BUMDes structure is currently filled
by experts in their respective fields
who are appointed by BUMDes
commissioners.
The management of
BUMDes Leles is currently filled
with selected people appointed by
the commissioners. However, the
appointment of BUMDes Danar
management should be through the
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mechanism of community delegation
from each village. Delegation
through representatives of each
village cannot be done because of the
principle of prudence upheld by all
the commissioners.
c. BUMDes Management
Supervision
There is a problem that has just
happened at BUMDes Danar Garut,
there is an irresponsible person from
BUMDes management who use
BUMDes assets for personal gain.
The person ran off with the money
from the businesses run by BUMDes
and then collaborate with other
entrepreneurs on behalf of BUMDes
for personal gain. Problems caused
by BUMDes employees mentioned
previously make the current
BUMDes management condition in
erratic condition. This problem
brings about numerous other
problems, namely that many
BUMDes management staff choose
to resign. Currently, BUMDes Danar
management only consists of
commissioners, directors, managers,
and a few remaining staff who
perform various functions. As an
example, Mr. Diki, as the staff of
BUMDes, he handles all kinds of
work fields, such as doing BUMDes
administration, taking care of
BUMDes financial reports, and
helping with the delivery of raw
materials for catering business. In the
interview session, Mr. Diki revealed
that currently BUMDes is very short
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of employees, and is in need of
improvement in order to strengthen
BUMDes business activities.
Problems that occur prove the lack of
supervision by the BUMDes
commissioner. The lack of
supervision carried out by BUMDes
commissioners on employees raises
the problems mentioned above. This
lack of supervision raises new
problems in the BUMDes Danar
organization, as well as ambiguity in
the main tasks and functions
stipulated in BUMDes regulations.
This confusion in the division of
work areas is a burden for BUMDes.
With the business currently in
progress, BUMDes needs additional
management to tidy up the labor
division in handling BUMDes
businesses.
3. Responsibility
a. BUMDes Danar's Accountability
Report
In accordance with BUMDes
regulations that are agreed upon, the
form of the accountability report is
divided into three, namely incidental
reports, periodic reports, and
accountability reports.
The final accountability report
cannot yet be carried out, because
until now the BUMDes is still
running, meanwhile according to the
rules made by collective agreement
the accountability report is only
carried out at the end of the
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management period. It means the
accountability report cannot be done
yet.
b. Bazaar Procurement to Increase
Community Selling Power
The next responsibility for BUMDes
Danar is in the form of procurement
of cheap goods bazaar. This is
included in the BUMDes Danar
business unit. The cheap goods
bazaar is a form of BUMDes concern
for the community. The purpose of
holding this bazaar is to increase
people's purchasing power.
c. Business Capital Assistance for the
Community.
BUMDes Danar is also active in
providing social assistance to the
community. This social assistance
uses the Danar BUMDes net profit
fund which has been explained in the
previous section. In profit sharing
managed by BUMDes Danar, 10% is
used for social assistance. The real
form of social assistance provided by
the Danar BUMDes is the provision
of capital to communities around the
Leles District. This capital aims to
empower the surrounding
community by encouraging their
business. Among other things such as
providing capital assistance in
making tourist souvenirs.
This capital is one form of assistance
and social responsibility BUMDes to
the community. So that the
community can have a job and can
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be empowered by the presence of
BUMDes Danar through social
assistance provided by BUMDes.
4. Equality
a. Determination of Catering Raw
Materials
The business units run by BUMDes
Danar include supplying catering raw
materials. The business run by
BUMDes Danar is certainly has to
involve all villages that are members
of the BUMDes Danar. The
implementation of this business has a
mechanism that is carried out in such
a way that it can provide the same
treatment for each village. BUMDes
Danar assigns a village to provide
one raw material for catering and the
said raw material is the focus of the
business for the village. No village
has the special right to supply more
than one type of raw material. In
addition, the supply of raw materials
provided by a village is determined
by the potential of the village. As for
some villages that do not have
special potential, the BUMDes
appoints them to be in charge of one
of the resources.
Tabel 1
Type of Material Provided by
Each Village
No Village Name Materials
1. Desa Cangkuang -
2. Desa Ciburial Rice
3. Desa Cipancar Meat
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4. Desa Dano Vegetables Reksa Jaya employees. The

5. Desa Haruman Oil management of this business unit is a
6. Desa Eggs form of cooperation carried out by all
Jangkurang villages that are members of the
7. Desa Kandang Tofu BUMDes Danar Garut. All members
Mukti who are members of BUMDes Danar
8. Desa Leles Fish Garut are involved in all business
unit management. All types of
9. Desa Lembang Tempeh
business activities carried out by
10 Desa MargaluyuFruits
BUMDes Danar, will not run without
.
the involvement of its village BUMD
11 Desa -
member. So that in business
. Salamnunggal
management, BUMDes Danar is
12 Desa Sukarame Mineral
assisted by all villages that are
. water
members of BUMDes Danar.
Source: data processed by
researchers For supplying catering raw materials
businesses to PT Changsin, BUMDes
b. Attention to BUMDes Danar Danar cannot enter into direct
Members collaboration between the two
Bumdes danar gives the same parties. Bumdes Danar Garut
treatment to each BUMDes member. requested the assistance of PT Biduri
All BUMDes decisions and needs are as a holding partnership between
communicated to the members. BUMDes and PT Changsin Reska
BUMDes Danar has 12 members Jaya.
consisting of BUMDes in each Chart 1
village. All problems that are found
in the members, BUMDes Danar are BUMDes Danar Partners
also responsible in providing input
and efforts to resolve them.

5. INDEPENDENCY PT CHangsin
Reksa Jaya
a. BUMDes Danar Partners

BUMDes Danar Garut has

various types of business units, BUMDes
Danar
including as a provider of catering
raw material services for PT Pegadaian PT. BIduri
Changsin Reksa Jaya. The supply of
raw materials is intended for the
logistics needs of PT Changsin
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Source: data processed
researchers
All business activities carried out by
BUMDes, the mechanism of
cooperation with the company will
be through PT Biduri. So that in
managing the business there is the
involvement of a third party namely
PT Biduri as a BUMDes holding. PT
Biduri is a third party appointed by
BUMDes Leles as a holding
company in conducting cooperation
with PT Changsin. Bumdes cannot
collaborate directly, cooperation can
only be conducted between company
to company, so the bumdes appoint
PT Biduri. The role of PT Biduri also
holds the overall administration of
BUMDes Bersama Leles.
BUMDes Danar also has a
partnership with Pegadaian. This
partnership is carried out in running a
cheap basic food bazaar. Pegadaian
as a partner, provides all
accommodation needs for BUMDes.
In addition to accommodation
providers, Pegadaian also provides
interest-free capital loans for
BUMDes Danar.
Partnerships conducted by BUMDes
and other parties, of course, provide
benefits and mutual profit. For the
partnership in BUMDes Danar's own
business, no domination was found
over any party, all authority was
fully owned and decided by
BUMDes Danar. So that all activities
and sustainability can be carried out
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by in accordance with the needs and
interests of the community.
CONCLUSION
An anilysis regarding the governance
of BUMADes in Leles District,
based on the findings and results of
the research, concludes that, firstly,
the management of BUMADes
Danar in carrying out business
openness (transparency) has run
quite well. The openness principle
regarding all business activities can
be accessed by all members of the
BUMDes Danar through reporting
conducted by each village and also
the BUMDes management. Openness
in business activities is indeed not
difficult to access, but the BUMDes
Danar management still maintains its
secrecy. Confidentiality is done to
maintain the sustainability of
BUMDes, including regarding
BUMDes' financial balance sheet.
The secrecy carried out aims to avoid
the seizure of ownership of BUMDes
Danar.
Second, accountability of BUMDes
Danar cannot be considered good,
because there are problems in the
BUMDes management. The
placement of BUMDes Danar
management is done through
representatives of each BUMDes
member from each village. The
BUMDes management placement
system based solely on village
representatives proved that there was
no strict recruitment process.
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Administrators are placed based only
by individual representation of each
village that is a member of the Danar
BUMDes. So that in carrying out
business activities, problems are
often found that cause the
sustainability of BUMDes is
disturbed.
Third, BUMDes Danar needs
to provide accountability reports for
the community. Activity reports
submission by BUMDes Danar and
results of operations must be
submitted to the public through
accountability reports that are carried
out within a certain period of time.
Unfortunately, the activity report and
the BUMDes Danar business were
carried out erratically. BUMDes
accountability reports should be done
every month, but sometimes they are
done in more than one month.
In addition to accountability
in conducting business activities,
BUMDes Danar also provides
assistance to village communities
that are members of BUMDes Danar.
The accountability forms of
BUMDes include the provision of
social assistance to the community
which is regulated in a collective
village regulation. Another form of
accountability for BUMDes Danar is
through the provision of venture
capital for the community. The
business capital provided aims to
form an independent nature in
society. The term giving a man
fishing rod is much better than giving
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him fish is an appropriate sentence to
describe the provision of venture
capital by BUMDes Danar.
Fourth, BUMDes Danar as
the institution that oversees BUMDes
in each village in Leles District gives
the same treatment to each of its
members. Examples include efforts
to resolve BUMDes problems in
member villages, providing training
on BUMDes to all BUMDes
members, and of course equitable
sharing in running the business. The
equal treatment by BUMDes for its
members is evidenced by the
determination of resources for the
BUMDes raw materials distribution.
BUMDes Danar Garut cooperates
with third parties to do business,
including cooperation with
companies making Nike shoes.
BUMDes Danar acts as a distributor
of all goods and service needs for the
company, the current form is that of
catering raw material suppliers. In
the business unit for catering raw
material distribution, BUMDes
Danar shares raw materials in which
each village is only allowed to give
one resource. There is no partiality of
BUMDes towards one of its
members to give special treatment,
all members get the same treatment.
Fifth, in running a business,
BUMDes Bersama Leles runs
cooperation with third parties.
Cooperation conducted in different
types, such as PT Changsin,
BUMDes Danar cooperated in the
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field of supplying logistical needs for BUMdes Bersama Leles Akan

the company. Bumdes Bersama Jadikan Tempat Pelatihan
Leles also runs cooperation with BUMdes se-Indonesia,
Pegadaian in the form of providing Accessed on the 31st of
logistics supply for BUMDes in January 2017. Accessed from:
carrying out cheap basic food bazaar http://www.garutkab.go.id/
activities. In return for Pegadaian,
BUMDes is looking for customers Creswell, Jhon. (2015). Penelitian
from the village community in Leles Kualitatif dan Desain Riset.
District. Other cooperation Yogyakarta: Pustaka Pelajar.
undertaken by BUMDes Bersama Daniri, Mas Ahmad. (2005). Good
Leles is with PT Biduri as the party Corporate Governance: Konsep
appointed by BUMDes to bridge the dan Penerapannya di
cooperation with PT Changsin. Indonesia. Jakarta: Ray
BUMDes Bersama Leles cannot Indonesia.
carry out cooperation with the
company, because cooperation can Dantika Ovi Era Tama. Dengan
only be carried out on a company-to- bahasan. (2013). Dampak
company basis, so BUMDes Badan Usaha Milik Desa
Bersama appointed PT Biduri as the (Bumdes) Bagi Kesejahteraan
holding company of BUMDes in Masyarakat Di Desa
conducting cooperation with the Karangrejeki Kecamatan
company. Wonosari Kabupaten Gunung
Kidul. Skripsi jurusan ilmu
administrasi negara. Fakultas
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ACKNOWLEDGEMENT
a. BUMDes Bersama Danar
Strength
Discussing about BUMDes Danar
Garut’s strength is such an important
matter. This discussion is placed on
the variable of independence,
because the main cause of the
presence of BUMDes Danar is not
from the initiative of the surrounding
community. The presence of
BUMDes Danar, which is a
BUMDes role model in Indonesia,
comes from the presence of foreign
companies. Why does it say
BUMDes Danar was born because of
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the presence of foreign companies,
not based on the pure desires of the
community? The establishment of
BUMDes Danar was caused by the
establishment of the company PT.
Changsin Reksa Jaya, which is a
foreign company engaged in the
shoes manufacturing for Nike. The
discussion on the origin of BUMDes
has a connection to the dominance
that will occur in BUMDes Danar. In
this discussion explicitly stated that
no domination occurred by PT
Changsin over BUMDes Danar.
The establishment of a foreign
company in the Leles District was
once rejected by the community. The
rejection happened because the
company was standing on a spring.
In addition, the company did not pass
the construction permit, because it is
in a water catchment area. At a
certain political point this company
could be established, but the
community still refused. The
community and the village were
actually confused in facing the
presence of PT Changsin, because
since its establishment there had
been a struggle that cause conflict.
The establishment of the
BUMDes was initiated by the
establishment of the BUMDes joint
forum with the initiation from the
Head of the Village Community
Empowerment Agency. The
BUMDes Forum later became the
Inter-Village Coordination Agency
(BKAD) of Leles District. The forum
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meeting decided to form BUMDes
Bersama Danar Garut and Mr Haris
was appointed as BUMDes director.
After the forum decision was agreed,
the BUMDes joint maneuver through
Mr. Haris began to put pressure on
PT Changsin.
Through Mr. Haris as director
of BUMDes, the company was
pressured to complete a legal
establishment permit. Dialectics
between the company and the
BUMDes director resulted in a
decision that 12 villages would
accept the establishment of PT
Changsin and would assist legally.
The agreement certainly must
provide benefits for the people of the
District of Leles. As one of the main
actors, Mr. Haris Barja made an
agreement that all procurement needs
of PT Changsin goods and services
can only be contacted through
BUMDes Danar.
The agreement between BUMDes
and PT Changsin company, became
the gateway for the running of
BUMDes Danar. At present, the
foreign company is still standing and
the agreement with BUMDes
continues. This agreement, which
later pacified polemic in the
community, became the main
backbone of the Danar BUMDes
business. The cooperation agreement
between PT Changsin and BUMDes,
is carried out for life.
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b. The Appearance of Cartels
at the Village Level
The presence of BUMDes Bersama
Danar, based on the establishment of
foreign companies in the District of
Leles. Since its establishment, the
company has broken the rules
because it stands in the water
catchment area. Initially the entire
community of Leles District refused
the presence of the company. In
addition to causing damage to nature,
it also causes conflict between
communities. Seeing this condition,
there was the initiation of the village
chiefs who wanted to reduce the
conflict in the Leles District
community. Through meetings
between village chiefs throughout the
Leles District, a number of decisions
have been produced which
subsequently led to the BUMDes
Bersama.
In general, the efforts made in
empowering the community through
BUMDes are said to be good. It has
been proven that the BUMDes
Bersama business continues to run
and provides opportunities for
BUMDes in other villages. There is
carefulness in seeing opportunities
for the community, and an
association is formed as a place to
channel it. However, based on
observations, there were anomalies
found in BUMDes Danar. The
anomaly found lies in the initial
capital of BUMDes Bersama.
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According to the Law on The pattern in the BUMDes

Villages, BUMDes funding and Danar indicates the emergence of
capital are sourced from the Village's cartels at the village level. The
Original Income (PAD), Grant structure of opportunities found by
Funds, Village Budgeting and the Leles District community
Village Funds (APBDes), and provides an opportunity for local
Village Fund Allocation sourced actors to gain benefit. The presence
from the State. The capital for the of companies which was blocked on
Danar BUMDes establishment is behalf of the community through the
sourced from of the village chief BUMDes forum, is a packaging for
personal funds of five million rupiah cartel practices. It was an initial
each. The collected funds will be effort to discourage foreign
used as initial capital in running the investment, then offered options so
BUMDes Danar business. Funds that the company could continue
given by the village chiefs as initial running. Using BUMDes packaging,
capital for BUMDes, are then the perpetrators in this practice try to
considered as shares of each village profit from the company. So that in
chief and every month the village general the establishment of the
chief gets a salary of two million BUMDes Danar is not in accordance
rupiah. with the law, because funding is not
sourced from village funds, and in
Based on observations and practice indicates that cartels are
data searches, funds sourced from the present at the village level.
village head as initial capital
BUMDes sourced from the company.
The company provides fresh funds
for village heads, in order to ensure
the security of the company's
establishment. This practice was
carried out to ensure the
sustainability of the company in
Leles District. After these fresh funds
are received, the company's activities
which were initially rejected can
finally be run and legally assisted.
However, based on the previous
explanation regarding the conditions,
feedback obtained for the community
is channeled through the BUMDes
Danar business activities.