1. INNOVATION IN DEVELOPING VILLAGE OWNED ENTERPRISE (BUMDES) AS SOCIAL ENTERPRISE
By : Bambang Ismawan
INDONESIA-JAPAN LOCAL ADMINISTRATION SEMINAR
JAKARTA, AUGUST 25, 2016
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Village Owned Enterprise - Bambang Ismawan

2. VILLAGES: THE ROOTS OF A COUNTRY
A COUNTRY IS A BIG TREE
A TREE’S strength, growth and development are determined by the health of its roots
If the villages are productive, self-sustained, prosper and peaceful , the country will be strong, productive and prosper
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Village Owned Enterprise - Bambang Ismawan

3. A VILLAGE
ACCORDING TO VILLAGE LAW 6/2014
State-organised Village or Costumary (Adat) Village is legal community unit with
territory and borderline,
authority to manage their administration and local community interest
based on community initiatives, traditional rights or the rights of origin, as it is recognised and respected in the state administration of Republik Indonesia. (Village Law 1:1)
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Village Owned Enterprise - Bambang Ismawan

4. VILLAGE DEVELOPMENT APPROACH
BETTING ON THE STRONG, rely on the stronger part of community, the landholders, the more educated and more skillful individuals. It has been the approach of many VILLAGE development agenda, such as : Bimas
Exclusive Development at VILLAGE Level
BETTING ON THE MANY rely on social capital and collectivity, every villagers are counted, and having the opportunity to grow together regardless poor or rich, educated or not, skilled or unskilled.
Inclusive Development at VILLAGE Level
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Village Owned Enterprise - Bambang Ismawan

5. INCLUSIVE DEVELOPMENT
Inclusive development is an approach that equally values all members of the society and incorporates the contributions of all stakeholders - including marginalized groups - in addressing development issues.
VILLAGE LAW 6/2014 gives Opportunity for Inclusive Development based on principles of RECOGNITION and SUBSIDIARITY
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Village Owned Enterprise - Bambang Ismawan

6. VILLAGE DEVELOPMENT INFRASTRUCTURE
Innovation at the village level can be based on Social, Financial and Production Infrastructure
Within the framework of Inclusive Development
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Village Owned Enterprise - Bambang Ismawan

7. VILLAGE OWNED ENTERPRISE (BUMDES)
ACCORDING TO VILLAGE LAW 6/2014
A BUSINESS ENTITY, which is partly or wholly owned by a Village, through direct investments originating from separating a sum of asset of the village which is managed for the prosperity of the villagers.
Establishment of BUMDES is carried out in an consultation and agreement of the Village Council, and defined with a village regulation.
Two Villages or more can establish one BUMANDESA (Inter-Villages Owned Company)
A Village-owned company (BUMDES or BUMANDESA) can develop a join cooperation with third party
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Village Owned Enterprise - Bambang Ismawan

8. INNOVATING BUMDES IN SOCIAL ENTERPRISE PERSPECTIVE
Bina Swadaya Perspective
BUMDES is a business entity with Social Entrepreneurship approach, practising Social and Sustainable Development with Entrepreneurship Solution.
Social and Sustainable Development comprises of efforts in Poverty Alleviation, Productive Employment and Social Integration as well as Preserving the Environment in Sustainable Manner.
As Social Enterprise the profit or surplus of BUMDES is allocated to village development as well as for the benefit of villagers’ welfare
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Village Owned Enterprise - Bambang Ismawan

9. BUMDES OPERATIONAL STRUCTURE (Bina Swadaya Perspective)
Subsidiary Company
(with 3rd Party)
CBO
BUMDES
CBO
Community Based Organisation (CBO)
Microfinance
Production & Marketing
Appropriate Technology and the Environment
Local Specific and creative economy
CBO
Unit Business
(with Partner/Investor)
CBO
CBO
CBO
BUMDES can develop business units or subsidiary company throughout a joint cooperation with other parties
CBO
Citizen
Community Based Organisation (CBO)
Chairperson CBO
VILLAGERS (Citizens) are given opportunity to own BUMDES through CBO mechanism
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Village Owned Enterprise - Bambang Ismawan

10. DEVELOPMENTAL FUNCTIONS OF BUMDES
Development of COMMUNITY BASED ORGANISATION (CBO/KSM) : Each CBO is basically comprises of micro entrepreneurs, the process of each CBO made possible interactive adult -learning process, individual development and regeneration processes.
Microfinance : The process of financial development and ability of each micro-entrepreneur to develop their home economy and business
Production & Marketing : The development of production skills and organisations, value-adding, quality control, understanding customers and how to outreach the market in supply-chain.
Appropriate Technology and the Environment : The use of technology which is friendly to villagers capacity in the learning and development processes in sustainable manner.
Local Specific and creative economy : In relation of development of Indigenous Knowledge of special products, its production skills, resources and its supply-chain.
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Village Owned Enterprise - Bambang Ismawan

11. COMMUNITY BASED ORGANISATION OPERATION
CBO
DEMOCRATIC AND PARTICIPATORY
ORGANISATION
OPEN-MINDEDNESS
INCOME GENERATING
ORIENTATION
HOME ECONOMICS DEVELOPMENT
CAPITAL FORMATION
BUSINESS DEVELOPMENT
TOWARDS NEW IDEAS
TOWARDS NEW COLLABORATIONS
REGULAR MEETING
REGENERATION AND EDUCATION
LEADERS FROM MEMBERS
OPEN AND TRANSPARANT ADMINISTRATION
PARTICIPATORY PLANNING, EXECUTING AND EVALUATION
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Village Owned Enterprise - Bambang Ismawan

12. SELF RELIANCE DEVELOPMENT OF COMMUNITY BASED ORGANISATION
CBO
INFORMATION AND NETWORK DEVELOPMENT
INSTITUTIONAL
DEVELOPMENT
BUSINESS
FINANCIAL
HUMAN CAPITAL
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Village Owned Enterprise - Bambang Ismawan

13. PEOPLE-CENTERED ORIENTATION
BUMDES orientation is not merely business, the activities of community business development should create improvement in VILLAGE life, which can be indicated with
Improving Community’s Smartness; improving ability to solve problems, negotiating solutions, making adjustment or judgment.
Improving Self-Reliance; confidence in their own efforts, choices and abilities
Improving Welfare; capacity to improving livelihood and social economic development
Reconcile Life Together; to maintain peace and conflict resolution in daily social, economics and cultural actions
Preserving The Environment In a Sustainable Manner; mainstreaming environmental sustainability in social and economic efforts
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Village Owned Enterprise - Bambang Ismawan

14. SOCIAL ENTREPRENEUR & PROMOTOR of SOCIAL ENTREPRENEURSHIP
BINA SWADAYA (Est. 1967)
SOCIAL ENTREPRENEUR & PROMOTOR of SOCIAL ENTREPRENEURSHIP
A Foundation engaged in the business development, community empowerment, especially social and solidarity economy
Developing Community-based institutions, such as: Self-Help Groups, Cooperatives, and Micro Banking
DEVELOPMENT FOCUS
Community Based Self Help Organization Development
Microfinance Services and Development
Community Based Production and Business Development
Training and Education in Self-Reliance
Local Spesific Development
“TRUBUS KUSALA SWADAYA" Award for Individuals, Institutions and Organizations
ONE FOUNDATION, 14 Companies for Community-based Socio-Economic Development
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Village Owned Enterprise - Bambang Ismawan

15. INCLUSIVE DEVELOPMENT Starts at the Bottom of the Pyramid
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Village Owned Enterprise - Bambang Ismawan

16. Founder & Chairman of Bina Swadaya Fundation
Bambang Ismawan
Founder & Chairman of Bina Swadaya Fundation
Founder & Chairman Trubus Agriculture Magazine
Founder & General Secretary of Indonesian Movement for Microfinace Development
Founder & Chairman of Indonesia Social Entrepreneurship Association
Founder & President of Sinergi Indonesia
Founder and Chairman of Persab (Perhimpunan Sahabat Bangun) Flobamora
Founder and Chairman of ASEC (Asia Solidarity Economy Council) Indonesia
Founder and Vice Chairman of ISEA (Institute of Social Entreprenurship in Asia), Manila
Founder and Board of Trustee of Unlimited Indonesia
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Village Owned Enterprise - Bambang Ismawan