Strategic Development of VOEs in Natural Resource-Based Sectors: Insights from Agriculture and Tourism

Nelly Purnama Sari, Dwi Rachmina, Lala M. Kolopaking

Abstract

Badan Usaha Milik Desa (BUMDes) or Village-Owned Enterprises (VOEs) play an essential role in developing the rural economy. Unfortunately, there are numerous hurdles that VOEs must overcome, therefore many do not perform optimally. This study aims to examine how internal and external factors affect VOE performance in the agricultural and tourism sectors to boost rural economic development. Alternative solutions are then presented to improve VOE's performance. The study employs two samples: one VOE focuses on agriculture and the other on tourism. Observation, in-depth interviews, and a literature review were used to collect data, which was then evaluated using A'SWOT (AHP and SWOT). The findings demonstrate that both industries face infrastructure restrictions, market competitiveness, and poor branding. For agricultural VOEs, incorporating digital marketing to increase market reach, fortifying branding, and growing distribution networks are important tactics. Meanwhile, tourism VOEs should prioritize branding to boost destination appeal and infrastructure development to improve accessibility. Strengthening local branding through a compelling narrative and utilizing technology-driven marketing are critical for competitiveness. By implementing these strategies, VOEs can improve sustainability, attract a wider market, and support rural economic growth. Integrating branding, digital marketing, and infrastructure development ensures adaptability in an increasingly competitive landscape.

Keywords

Badan Usaha Milik Desa (BUMDes); local economy; management strategy; Village-Owned Enterprises (VOE)

Full Text:

PDF

References

Alford, P., & Jones, R. (2024). Digital entrepreneurial marketing bricolage: shaping technology-in-practice. International Journal of Entrepreneurial Behavior & Research, ahead-of-p(ahead-of-print). https://doi.org/10.1108/IJEBR-07-2024-0746

Cheung, M. L., Pires, G. D., Rosenberger, P. J., Leung, W. K. S., & Ting, H. (2021). Investigating the role of social media marketing on value co-creation and engagement: An empirical study in China and Hong Kong. Australasian Marketing Journal, 29(2), 118–131. https://doi.org/10.1016/j.ausmj.2020.03.006

Chim-Miki, A. F., & Batista-Canino, R. M. (2017). Tourism coopetition: An introduction to the subject and a research agenda. International Business Review, 26(6), 1208–1217. https://doi.org/10.1016/j.ibusrev.2017.05.003

David, F. R. (2017). Strategic Management concepts and cases A Competitive Advantage Approach (Sixteenth). Pearson Education Limited.

Dyson, R. G. (2004). Strategic development and SWOT analysis at the University of Warwick. European Journal of Operational Research. https://doi.org/https://doi.org/10.1016/S0377-2217(03)00062-6

Febiani, H. (2022). Potensi dan Upaya Pengembangan Obyek Wisata Watu Cenik Kabupaten Wonogiri Jawa Tengah (Dalam Kajian Geografi, Sosiologi dan Ekonomi). Repository.Uinjkt.Ac.Id. https://repository.uinjkt.ac.id/dspace/handle/123456789/65400

Ginting, A. P., Lubis, S. N., & Chalil, D. (2023). Arabica Coffee Export Development Strategy in North Sumatra, Indonesia. Agro Bali : Agricultural Journal, 6(1), 188–200. https://doi.org/10.37637/ab.v6i1.943%0D

Hidayat, A., & Sulastri, L. (2019). Empowerment Strategy of Village Enterprises Unit (VEU) to Improve Capacity and Their Performances in Sumedang Regency. European Journal of Sustainable Development, 8(4), 315. https://doi.org/10.14207/ejsd.2019.v8n4p315

Law Number 23 of 2014 on Regional Government [Undang-Undang Nomor 23 Tahun 2014 tentang Pemerintah Daerah], (2014). https://peraturan.bpk.go.id/Details/38685/uu-no-23-tahun-2014

Law Number 11 of 2020 on Job Creation [Undang-Undang Nomor 11 Tahun 2020 tentang Cipta Kerja], (2022). https://peraturan.bpk.go.id/Details/149750/uu-no-11-tahun-2020

Islachudin, M. U., Harisudin, M., & Riptanti, E. W. (2024). Coffee Business Development Strategy (Case Study at PT XYZ). Agro Bali : Agricultural Journal, 7(1), 70–80. https://doi.org/10.37637/ab.v7i1.1467

Kajanus, M., Leskinen, P., Kurttila, M., & Kangas, J. (2012). Making use of MCDS methods in SWOT analysis—Lessons learnt in strategic natural resources management. Forest Policy and Economics, 20, 1–9. https://doi.org/https://doi.org/10.1016/j.forpol.2012.03.005

Kangas, J., Pesonen, M., Kurttila, M., & Kajanus, M. (2001). “A’WOT: Integrating The AHP With SWOT Analysis.” International Symposium on the Analytic Hierarchy Process, 6.

Kania, I., Anggadwita, G., & Alamanda, D. (2021). A new approach to stimulate rural entrepreneurship through village-owned enterprises in Indonesia. Journal of Enterprising Communities: People and Places in the Global Economy, 15(3), 432–450. https://doi.org/10.1108/JEC-07-2020-0137

Kemendesa. (2023). BUMDes. Kementerian Desa, Pembangunan Daerah Tertinggal, dan Transmigrasi [Ministry of Villages, Development of Disadvantaged Regions, and Transmigration]. https://sid.kemendesa.go.id/bumdes

Kholmi, M., Jati, A. W., & Suhardi, D. (2018). Management of Village Private Enterprises as An Accomplishment of The Independence Economic Village. Jurnal Ekonomi Pembangunan (JEP), 42(03), 41–50. https://doi.org/10.22219/jep.v16i2.9053

LAN. (2022). Akselerasi pertumbuhan ekonomi desa melalui BUMDes. Lembaga Administrasi Negara (LAN RI). https://lan.go.id/?p=8396

Larasdiputra, G. D., Anggiriawan, P. B., Kawisana, P. G. W. P., & Putra, I. G. B. N. P. (2019). The Role of Village Owned Enterprises in Increasing the Rural Economy. International Journal of Advances in Social and Economics, 1(2), 60–66. https://doi.org/10.33122/ijase.v1i2.41

Ly, B., & Ly, R. (2020). Effect of Social Media in Tourism (Case in Cambodia). J Tourism Hospit, 9(1), 424. https://doi.org/10.35248/2167-0269.20.9.424

Mandagi, D. W., Soewignyo, T., Kelejan, D. F., & Walone, D. C. (2024). From a hidden gem to a tourist spot: Examining brand gestalt, tourist attitude, satisfaction and loyalty in Bitung city. International Journal of Tourism Cities, ahead-of-p(ahead-of-print). https://doi.org/10.1108/IJTC-10-2023-0217

Nihayah, F. L., Moehadi, & Mustofa, M. (2021). Peranan Bumdes Dalam Meningkatkan Pendapatan Asli Desa Kecamatan Kanor Kabupaten Bojonegoro. JEMeS - Jurnal Ekonomi Manajemen Dan Sosial, 4(1), 36–43. https://doi.org/10.56071/jemes.v4i1.257

Purbasari, R., Soeling, P., & Wijaya, C. (2019). An Entrepreneurial Ecosystems Approach to Encouraging Local Economic Development through a Village-Owned Enterprises Policy (A Case Study of Indonesian Village-Owned Enterprises (BUMDes)). Archives of Business Research, 7(4). https://doi.org/10.14738/abr.74.6475

Puri, I. T., & Khoirunurrofik, K. (2021). The Role of Village-Owned Enterprises (BUMDES) for The Village Community Economy. Economics Development Analysis Journal, 10(1), 12–21. https://doi.org/10.15294/edaj.v10i1.40823

Rahadi, R. A., Nainggolan, Y. A., Afgani, K. F., Zainuddin, I. M., Rosmiati, M., Moulyni, A., & Ainindita, A. (2021). Sustainable Financial Development for Small Medium Coffee Farmers in Sumedang Regency, Indonesia. International Journal of Entrepreneurship and Management Practices, 4(14), 01–12. https://doi.org/10.35631/ijemp.414001

Rangkuti, F. (2019). Analisis SWOT : Teknik membedah Kasus Bisnis (cara perhitungan Bobot, Rating, dan OCAI) (15th ed.). PT Gramedia Pustaka Umum.

Rosyani, Napitupulu, D., & Kartika, E. (2019). Development strategy for the Sustainability of Liberica Coffee In Jambi Province, Sumatera, Indonesia. IOP Conference Series: Earth and Environmental Science, 391(1). https://doi.org/10.1088/1755-1315/391/1/012056

Saaty, T. L. (1980). The Analytic Hierarchy Process, Planning, Priority Setting, Resource Allocation, United States Of America.

Saragih, J. R., Tamba, F. F., & Asaad, M. (2023). The Role of Village-Owned Enterprises in Agriculture Sector in Enhancing Community Welfare in Tampahan District , Toba Regency , North Sumatra , Indonesia. Agro Bali : Agricultural Journal, 6(2), 315–325. https://doi.org/10.37637/ab.v6i2.1317%0D

Sari, N. P., Rachmina, D., Kolopaking, L., & Sanjaya, B. A. (2024). Examining Government Support : Dynamics of Innovation and Human Capital in VOEs (BUMDes) Performance. 25(2), 153–170. https://doi.org/10.23917/jep.v25i2.23874

Sugiyono. (2021). Metode Penelitian Kuantitatif, Kualitatif dan R&D (2nd ed.). Penerbit Alfabeta.

Tarlani, T., Dariah, A. R., & Rani, A. M. (2022). Transforming Rural Economy Through Community-Based Tourism with Village-Owned Enterprise (BUMDES, Badan Usaha Milik Desa) - A Case Study: Cibiru Wetan, Pagerwangi and Cipamekar Villages, Indonesia. International Journal of Sustainable Development and Planning, 17(5), 1535–1542. https://doi.org/10.18280/ijsdp.170517

Win, C. C. M. T., Dodanwala, T. C., & Santoso, D. S. (2024). Synthesizing customer satisfaction and loyalty through contractors’ service quality and brand image. Engineering, Construction and Architectural Management, ahead-of-p(ahead-of-print). https://doi.org/10.1108/ECAM-06-2023-0633

Xu, H., Wu, X., & Liu, Y. (2022). Modelling offline expansion strategies of online companies. Kybernetes, 51(1), 302–322. https://doi.org/10.1108/K-08-2020-0491

Yanti, M. E., Nasution, N., As’ad, O. A., & Surbakti, S. (2023). Income Analysis of People’s Coffee Farmers (Coffea). In Sipiongot Village, Dolok District, North Padang Lawas District. Agripreneur: Jurnal Pertanian Agribisnis, 12(2), 57–61. https://doi.org/https://doi.org/10.35335/agripreneur.v12i2.4858

Zaidan, E. (2017). Analysis of ICT usage patterns, benefits and barriers in tourism SMEs in the Middle Eastern countries: The case of Dubai in UAE. Journal of Vacation Marketing, 23(3), 248–263. https://doi.org/10.1177/1356766716654515

DOI: https://doi.org/10.37637/ab.v8i1.2024

Refbacks

  • There are currently no refbacks.