Proceedings of the 5th International Public Sector Conference, IPSC 2023, October 10th-11th 2023, Bali, Indonesia

Research Article

The Role of Village-Owned Enterprise in Fostering Financial Literacy and Digital Economy: Case Study in Yogyakarta, Indonesia

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  • @INPROCEEDINGS{10.4108/eai.10-10-2023.2342197,
        author={Muhammad Heru  Akhmadi and Muhammad Syahrul  Fuady and Yanuar  Pribadi},
        title={The Role of Village-Owned Enterprise in Fostering Financial Literacy and Digital Economy: Case Study in Yogyakarta, Indonesia},
        proceedings={Proceedings of the 5th International Public Sector Conference, IPSC 2023, October 10th-11th 2023, Bali, Indonesia},
        publisher={EAI},
        proceedings_a={IPSC},
        year={2023},
        month={12},
        keywords={village-owned enterprises financial literacy digital economy village finance},
        doi={10.4108/eai.10-10-2023.2342197}
    }
    
  • Muhammad Heru Akhmadi
    Muhammad Syahrul Fuady
    Yanuar Pribadi
    Year: 2023
    The Role of Village-Owned Enterprise in Fostering Financial Literacy and Digital Economy: Case Study in Yogyakarta, Indonesia
    IPSC
    EAI
    DOI: 10.4108/eai.10-10-2023.2342197
Muhammad Heru Akhmadi1,*, Muhammad Syahrul Fuady1, Yanuar Pribadi1
  • 1: Polytechnic of State Finance STAN
*Contact email: heru.cio@gmail.com

Abstract

Village-owned Enterprise (BUM Desa) is a social enterprise that functions as a pillar of the village economy in Indonesia. This study identifies the business models of BUM Desa in fostering financial literacy and the digital economy in Yogyakarta. The results revealed that there are four business models of BUM Desa: digital payment systems, digital markets, integrated waste management with savings, and rural microfinance. However, results show that several factors influence the success of the role such as business legality, innovative leadership, business model agility, village government support, and village meetings. Furthermore, capital, human resource quality, and information systems are the prerequisites for the fulfillment new business model in the internal BUM Desa. On the other hand, government involvement is also needed to socially strengthen village communities through programs to increase the financial literacy index and strengthen community entrepreneurship.