Proceedings of the 1st Maritime, Economics, and Business International Conference, MEBIC 2021, 24-25 September 2021, Tanjungpinang City, Riau Islands Province, Indonesia

Research Article

The Performance and Effectiveness of the Financial Management of Village-Owned Enterprises the Covid-19 Pandemic Research in Bumdes Toapaya, Bintan, Indonesia

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  • @INPROCEEDINGS{10.4108/eai.24-9-2021.2314770,
        author={Sri  Ruwanti and Asri Eka Ratih and Hadli Lidya Rikayana and Jack Febriand Adel},
        title={The Performance and Effectiveness of the Financial Management of Village-Owned Enterprises the Covid-19 Pandemic Research in Bumdes Toapaya, Bintan, Indonesia},
        proceedings={Proceedings of the 1st Maritime, Economics, and Business International Conference, MEBIC 2021, 24-25 September 2021, Tanjungpinang City, Riau Islands Province, Indonesia},
        publisher={EAI},
        proceedings_a={MEBIC},
        year={2021},
        month={12},
        keywords={effectiveness financial performance village owned-enterprises locally-generated revenue},
        doi={10.4108/eai.24-9-2021.2314770}
    }
    
  • Sri Ruwanti
    Asri Eka Ratih
    Hadli Lidya Rikayana
    Jack Febriand Adel
    Year: 2021
    The Performance and Effectiveness of the Financial Management of Village-Owned Enterprises the Covid-19 Pandemic Research in Bumdes Toapaya, Bintan, Indonesia
    MEBIC
    EAI
    DOI: 10.4108/eai.24-9-2021.2314770
Sri Ruwanti1,*, Asri Eka Ratih1, Hadli Lidya Rikayana1, Jack Febriand Adel1
  • 1: Raja Ali Haji Maritime University
*Contact email: sriruwanti@umrah.ac.id

Abstract

This study aims to investigate the performance and effectiveness of financial management in BUMDes Toapaya. This study uses a qualitative approach where financial performance is calculated using financial ratios. Effectivenesss assessed through in-depth interviews with resource persons.The observations took place in 2019 and 2020, with 2019 being the base year. The results obtained show a decrease in profit of 38.81%, but NPM increased by 8% from the previous year. This was due to the strategy carried out during 2020 by Village-Owned Enterprises, BUMDes, to reduce the burden and adjust business activities in response to the effects of Covid-19 conditions. The results of BUMDes' efforts have not been effective in achieving all aspects that the village targets. However, the existence of BUMDes can create job opportunities and provide contribution to the village as locally-generated revenue (PADes).