Research Article
The Impact of Digitalization on the Development of Village-Owned Enterprises (BUM Desa)
@INPROCEEDINGS{10.4108/eai.3-10-2024.2358766, author={Muhammad Royhan Alamsyah and Eka Puspitawati}, title={The Impact of Digitalization on the Development of Village-Owned Enterprises (BUM Desa) }, proceedings={Proceedings of the 3rd International Conference on Contemporary Risk Studies, ICONIC-RS 2024, 3 October 2024, Surakarta, Indonesia}, publisher={EAI}, proceedings_a={ICONIC-RS}, year={2025}, month={9}, keywords={digitalization village-owned enterprises multinomial logit rural transformation}, doi={10.4108/eai.3-10-2024.2358766} }- Muhammad Royhan Alamsyah
Eka Puspitawati
Year: 2025
The Impact of Digitalization on the Development of Village-Owned Enterprises (BUM Desa)
ICONIC-RS
EAI
DOI: 10.4108/eai.3-10-2024.2358766
Abstract
Village-Owned Enterprises (BUM Desa) are an initiative launched by the Indonesian government to drive rural development by optimizing local economic potential and empowering village communities. These enterprises play a vital role in fostering economic inclusivity and reducing regional disparities. The performance of BUM Desa is commonly evaluated using a tiered ranking system, which includes the categories of advanced, developing, beginner, and pioneer. In the context of an increasingly digital world, digital transformation offers a strategic avenue for BUM Desa to strengthen their management practices, enhance service delivery, and improve their overall performance rankings. This study investigates how digitalization impacts the managerial development of BUM Desa. Drawing on primary data from 165 BUM Desa across various regions in Indonesia, the study employs a multinomial logit model to analyze the relationship. The results highlight that the digitalization of decision-making processes, core business functions, and marketing efforts significantly contributes to the advancement of BUM Desa. Additionally, collaboration with suppliers, investors, and other relevant stakeholders facilitates access to critical resources, expertise, and networks—key factors in overcoming operational challenges and achieving long-term sustainability.
