Transformation of BUMDes Towards Village Corporatization: Qualitative Analysis of Policy Implementation Challenges

The transformation of Village-Owned Enterprises (BUMDes) towards village corporatization is a strategic step in strengthening economic independence and improving the welfare of rural communities in Indonesia. This study analyses the dynamics of BUMDes transformation from the institutional, governance, innovation, to strengthening business networks. The results of the study show that this transformation not only requires increased human resource capacity and professional governance, but also business model innovation, digitalization, and cross-sector collaboration. Good practices from a number of BUMDes that have successfully transformed show increased efficiency, market expansion, and significant socio-economic impacts. However, challenges such as limited capital, political intervention, and low community participation still need to be addressed comprehensively. The transformation towards village corporatization has the potential to create an inclusive, adaptive, and sustainable village economic ecosystem, while strengthening the position of the village as the main subject of national development. This study recommends strengthening training, professional mentoring, digitalization, and regulations that support BUMDes governance based on modern corporate principles.