Assessing BUMDES Institutionalization: A Pillar of the Local Economy in Southwest Papua

This study focuses on the role of Village-Owned Enterprises (BUMDes) as a pillar of the local economy in Southwest Papua. Using a qualitative approach, this study uses the institutional framework proposed by Scott (2001), which includes the regulatory, normative, and cognitive pillars, to evaluate the extent to which BUMDes have been institutionalized and function as drivers of the village economy. The results show that the regulatory pillar is implemented through Village Regulations (Perdes) and Articles of Association/Bylaws (AD/ART), providing an important structure for BUMDes governance, although challenges in enforcing sanctions and compliance need to be overcome to ensure operational effectiveness. The normative pillar plays a role in shaping community identity and commitment, but has not been fully internalized in daily practice, indicating the need for increased training and support to achieve economic independence. The cognitive pillar, which includes shared values and beliefs, is also identified as a motivating factor in developing village potential, although there are still obstacles in terms of infrastructure and managerial capacity. Therefore, this study recommends increasing the capacity of managers through village norm-based training, intensive mentoring, and strengthening collaboration with local communities and stakeholders to maximize the contribution of BUMDes in supporting sustainable economy and the welfare of village communities in Southwest Papua.