President Jokowi Tells Village-Owned Enterprises to Spur New Businesses

The Launch of Legal Entity Certificates and the Opening Inauguration of National Coordination Meeting for Village-Owned Enterprises (BUMDes), Monday (12/20). (Source: Screenshot)

Village-Owned Enterprises (BUMDes) must provide economic benefits to communities at the village level as the number of BUMDes has grown rapidly from 810 in 2014 to 57,200, President Joko “Jokowi” Widodo has said.

“Do not just receive a legal entity certificate and install the nameplate of ‘Village-Owned Enterprises of Sukamakmur Village’ without any economic activities in it or with the quality of activities that is not clear. Instead, they should work hard to provide economic benefits to our people,” the President said during the Launching of Legal Entity Certificates and the Opening Inauguration of National Coordination Meeting for Village-Owned Enterprises (BUMDes), at the Birawa Ballroom, Bidakara Hotel, Jakarta, Monday (12/20).

The President added that the existence of BUMDes and Joint BUMDes should drive the birth of new businesses needed by the communities instead of eliminating the existing people’s businesses.

“[Those BUMDEs and joint BUMDes] must trigger, spur new businesses in the communities that did not exist before but are needed so that people in the villages do not have to go to district or regency areas. It will be enough for them to stay in the village since economic activities have been fulfilled there,” he said.

The Head of State also urged BUMDes to strengthen their role in consolidating people’s businesses to facilitate more supplies, including in supporting the procurement of fertilizer supplies for farmers.

The President also encouraged those business entities to be involved in activities organized by state-owned enterprises (SOEs) and the private sector and ordered SOEs and the private sector in the fields of plantations, mining, and others to involve BUMDes in their activities at region and village levels.

“We must not let those in the villages merely become spectators. While trucks pass by carrying large production of plantations, the people just watch and see.[Or they just] see the mine’s output taken out of the areass, out of the village. And they all just watch it. Involve them. Later on, I will order involvement of BUMDes and Joint BUMDes in the activities,” the President said.

President Jokowi also also ordered that the momentum of the ongoing pandemic be used as economic transformation in villages and in BUMDes.

“Everyone must have the courage to transform the economy villages. This is very important. BUMDes and Joint BUMDes must also transform and do not only work on things for the villages only. These two instruments should have a big vision so that people’s businesses can operate to bigger markets, especially to export markets, and invite the communities to develop and make the village become basis of productive economic activities,” the President remarked. (FID/UN) (RIF/MUR)