Village Owned Enterprises (BUM Desa) need to carry out a transformation to strengthen the economy in the village. The rural economy is one of the saviors when the economy in urban areas is disrupted. The village is currently the basis of productive economic activity. BUM Desa can spur the growth of new businesses needed by the community. In addition, BUM Desa can consolidate people's efforts to facilitate the supplies needed by the community. To strengthen the economy, the Government has stipulated Government Regulation Number 11 of 2021 concerning Village-Owned Enterprises which was promulgated and stipulated on February 2, 2021 in Jakarta.

Law Number 11 of 2020 concerning Job Creation has affirmed the position of BUM Desa as a legal entity established by the Village and/or together with the Villages to manage businesses, utilize assets, develop investment and productivity, provide services, and/or provide other types of business. others for the greatest welfare of the Village community.

With its status as a legal entity, the role of BUM Desa is increasingly important as a consolidator of community products/services, producers of various community needs, community business incubators, providers of public services, and various other functions. BUM Desa together can be a contributor to the village's original income. Therefore, in the future BUM Desa is believed to be a lever for village independence.

This Government Regulation serves as the legal basis for the establishment and management of BUM Desa as a legal entity whose arrangements are adjusted to corporate principles in general, but still places the spirit of kinship and mutual cooperation as the main pillars in the management of BUM Desa. For this reason, this Government Regulation regulates in detail the apparatus of the BUM Desa/BUM Desa together which consists of a Village Deliberation, advisors, operational implementers, supervisors, authorities and duties of each BUM Desa Organization apparatus, work procedures and relations between BUM Organizational apparatus. Villages, as well as provisions to ensure that the BUM Desa organizational apparatus can carry out their duties and authorities in a professional, efficient and effective and accountable manner.

The spirit of kinship and mutual cooperation is manifestly manifested by placing the Village Deliberation as the highest organ in BUM Desa decision-making and it is emphasized that the decisions of the Village Deliberation are taken based on deliberation to reach consensus. This policy is in line with the mandate of the Village Law which places the Village Deliberation as a forum for deliberation between the village consultative body, the Village Government, and elements of the community to deliberate and agree on strategic matters in the administration of the Village Government. Thus the Village Deliberation becomes a real manifestation of deliberative democracy in the village economy, and therefore the welfare of the community as a whole will remain the main goal of BUM Desa, not only the welfare of each individual.

Government Regulation Number 11 of 2021 concerning Village-Owned Enterprises is an implementation rule of Law 11 of 2020 concerning Job Creation. Government Regulation Number 11 of 2021 concerning Village-Owned Enterprises implements the provisions of Article 117 and Article 185 letter b of Law Number 11 of 2020 concerning Job Creation, it is necessary to stipulate a Government Regulation concerning Village-Owned Enterprises.

The legal basis for Government Regulation Number 11 of 2021 concerning Village-Owned Enterprises, are:

Article 5 paragraph (2) of the 1945 Constitution of the Republic of Indonesia;

Law Number 6 of 2014 concerning Villages (State Gazette of the Republic of Indonesia Year 20l4 Number 7, Supplement to the State Gazette of the Republic of Indonesia Number 5495);

Law Number 11 of 2020 concerning Job Creation (State Gazette of the Republic of Indonesia of 2020 Number 245, Supplement to the State Gazette of the Republic of Indonesia Number 6573);

Village-Owned Enterprises in the general provisions of Government Regulation Number 11 of 2021 concerning Village-Owned Enterprises or Village BUMs are legal entities established by villages and/or together with villages to manage businesses, utilize assets, develop investment and productivity, provide services , and/or provide other types of business for the maximum welfare of the Village community.

Village Owned Enterprises consist of BUM Desa and BUM Desa together. Government Regulation Number 11 of 2021 concerning Village-Owned Enterprises states that Village-Owned Enterprises have the following objectives:

carry out economic business activities through business management, as well as investment development and economic productivity, and Village potential;

carry out general service activities through the provision of goods and/or services as well as the fulfillment of the general needs of the Village community, and manage the Village food barns;

obtain a profit or net profit for increasing the Village's original income and developing the maximum benefit from the economic resources of the Village community;

utilization of Village Assets in order to