Strengthening Sustainable Economic Concept Through Village-Owned Enterprises

Abstract

One of the government's priority programs to improve the national economy is strengthening rural economic institutions. Village-Owned Enterprises are economic institutions established by the village by taking into account the characteristics of the village's natural resources that are used to realize independence and improve the welfare of the village community. However, empirically, some VOEs can still not contribute to the village and even experience business stagnation. Inaccuracies cause this and a lack of knowledge of VOE management in managing business entities. This research is normative juridical research that uses a philosophical and conceptual approach. The purpose of this study is to analyze the potential to strengthen Indonesia's sustainable economy. The results of this study indicate that a village business entity with a lot of business potential, such as the availability of natural resources, family values, and cooperation between communities, can be optimized to form a professional VOE business. A Business entity with good governance principles, but in running the company, still pays attention to the principles of local village wisdom.