Strengthening Community Trust through Good Village Governance: An Empirical Study of Village-Owned Enterprises (BUMDes) In Indonesia

Abstract : This study investigates how good village governance enhances community trust in Village-Owned Enterprises (BUMDes) in Indonesia by employing a qualitative approach involving in-depth interviews, field observations, and document analysis across selected high-performing BUMDes. The findings reveal that transparency, accountability, participation, and responsiveness are central to shaping cognitive, relational, and institutional trust, with community confidence strengthened when governance processes are open, inclusive, and consistent. Conversely, mismanagement, elite capture, and political interference undermine trust and institutional legitimacy. The study contributes to theoretical perspectives on institutional trust, rural social capital, and participatory governance, while offering practical recommendations for strengthening nationwide BUMDes governance models through improved financial transparency, community-based monitoring, and participatory planning. Although limited by its site-specific context and qualitative scope, the research provides a foundation for future comparative, mixed-method, and longitudinal studies on governance–trust dynamics in rural development institutions.