Village-owned enterprise
type of business entity created by village government in Indonesia
A village-owned enterprise (Indonesian: Badan Usaha Milik Desa), often shortened to BUMDes or BUM Desa, is a type of company that is managed and established by an Indonesian village. These companies span a wide array of industries, from agriculture and mining to tourism and retail. BUMDes are a relatively recent development in Indonesia, first appearing in the aftermath of fall of Suharto and the rapid decentralization that followed. As of 2022, according to data from the Ministry of Villages, Development of Disadvantaged Regions, and Transmigration, there are total of 74,691 registered BUMDes. However, due to bureaucratic difficulties, only around 10 percent (7,902) are certified as legal entities as of 2022.
History and definition
The first legal basis for villages being allowed to manage their own enterprises was Law Number 22 of 1999 on Regional Government, with chapter 108 stating that "villages may own enterprises in accordance with the law". This was later revised; in Law Number 32 of 2004, chapter 213, section 1, reads: "A village can establish an enterprise owned by the village in accordance of its needs and potential". The existence of village-owned enterprises was made clear with Government Law Number 72 of 2005, chapter 78, section 1, which specifically mentions Badan Usaha Milik Desa or BUMDes; Law Number 6 of 2014 on villages; Ministry of Home Affairs Regulation Number 39 of 2010 on the definition of a BUMDes; and Government Law Number 39 of 2021 on BUMDes.
In Law Number 6 of 2014, BUMDes are mentioned several times in detail. The law specifically defines a BUMDes as an "enterprise whose capital is wholly or partly owned by the village government, derived from the wealth of the village, which is separated through asset management, services, and other business for the welfare of the village's inhabitants".
The public source identifies “Village-owned enterprise” as type of business entity created by village government in Indonesia. This brief keeps that definition visible, then builds a research path around Village-owned, enterprise and type.
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The strongest evidence will usually combine a dated visual record with documents produced by the authority responsible for the place. The source revision retrieved here is dated Aug 12, 2025. The linked authority identifier is Q12473212. None of the 0 selected statements returned an explicit reference. The first chronological checks are 2022, 1999, 2004 and 2005.
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This entry incorporates text from “Village-owned enterprise” on English Wikipedia. Contributors are listed in the page history. Text is available under the Creative Commons Attribution-ShareAlike 4.0 License. Selected authority identifiers and statements are retrieved from Wikidata under CC0; their references and qualifiers remain part of the verification path.