Optimizing The Management of Village-Owned Enterprises (BUMDES) to Improve Community Welfare in Brubuh Village, Jogorogo Sub-District, Ngawi

Abstract

Islamic economics emphasizes community welfare through principles of justice, the prohibition of usury, and equitable wealth distribution. In Indonesia, welfare is a fundamental right for all citizens, including rural communities that play a strategic role in national development. Village-Owned Enterprises (BUMDES) serve as vital tools for managing village potential and promoting local economic growth. However, in Brubuh Village, the management of the Kayangan Cafe and Space business unit has not yet fully involved local MSME and farmers. This study aims to examine the management strategies of BUMDES Duta Karya in its efforts to improve the welfare of the village community using a qualitative approach. The findings indicate that principles such as professionalism, transparency, accountability, and the utilization of local resources have been implemented, although not yet optimally. Social and psychological factors, such as trust and community participation, influence the success of BUMDES. Overall, BUMDES Duta Karya contributes to strengthening the economic, social, environmental, and political sectors.