Situbondo Regional Regulation No. 1 of 2026: Revolutionizing Village-Owned Enterprises

The Situbondo Regency Government has officially enacted Perda Situbondo Nomor 1 Tahun 2026 concerning Village-Owned Enterprises (BUM Desa) as a strategic move to strengthen the economic foundation at the grassroots level. This regulation serves as a dynamic new milestone, effectively revoking the previous rule, Perda Number 10 of 2015, which is now considered irrelevant to modern economic developments.

This latest regulation is far from a mere administrative formality. It provides a significantly stronger legal basis for village governments to manage local potential, village assets, and investments professionally to realize sustainable community welfare. In the context of 2026, where the rural economy is rapidly digitizing, this law acts as a shield and a catalyst for growth.

For the 132 villages in the Situbondo region, Perda Situbondo Nomor 1 Tahun 2026 brings a renewed spirit of transformation. Village officials and BUM Desa managers now have a clear compass to navigate their business units, ensuring they do not only pursue profit but also provide a real social impact. Understanding this regulation is crucial for Village Secretaries, Treasurers, and Directors to ensure that financial accountability and asset management remain within the legal corridor, minimizing the operational failures that often plagued the past.

General Overview and Legal Standing

BUM Desa was originally regulated under Law Number 6 of 2014 concerning Villages. However, its existence gained even stronger legal certainty with the issuance of the Job Creation Law. The Job Creation Law (UU Cipta Kerja) explicitly affirms the status of BUM Desa and BUM Desa Bersama (Joint BUM Desa) as **legal entities** (Badan Hukum).

This status allows these enterprises to manage businesses, utilize assets, develop productive investments, and provide public services for the maximum welfare of the village community. In Situbondo, where natural resources and village assets are abundant, BUM Desa serves as the primary vehicle to harness this potential.

Perda Situbondo Nomor 1 Tahun 2026 meticulously outlines the organizational components of these enterprises. It defines the roles of the Village Meeting (Musyawarah Desa), advisors, operational managers, and supervisors. By providing a clear segregation of duties, the regulation ensures that the enterprise can operate professionally, efficiently, and accountably.

Philosophical Foundations and Strategic Goals

The drafting of Perda Situbondo Nomor 1 Tahun 2026 is rooted in the philosophy of “Gotong Royong” (mutual cooperation) and economic self-reliance. The village is positioned as a development subject with full authority to optimize its resources to increase **Village Original Income** (PADes).

According to Article 2 of this regulation, there are five primary strategic goals for BUM Desa in Situbondo:

• Economic Activity: Managing business units and measured investment development.
• Public Service: Providing essential goods and services, including the management of village food granaries.
• Commercial Profit: Generating net profit to bolster the PADes and support village infrastructure.
• Asset Optimization: Creating economic added value from village-owned land and buildings.
• Digital Ecosystem: Pioneering the village digital economy to meet the technological challenges of 2026.

These goals indicate that the local government intends for BUM Desa to play a dual role: as a profitable business entity and as a social institution serving the community’s basic needs. It is explicitly stated that BUM Desa should not compete with existing micro-businesses owned by residents; instead, it should act as an integrator or incubator that strengthens the local economic ecosystem.

Democratic Establishment and Legal Entity Status

The regulation defines BUM Desa as a legal entity established by the village to manage assets and increase productivity. There are two primary forms:

1. BUM Desa: Established by a single village.
2. BUM Desa Bersama (Joint BUM Desa): Established by two or more villages to manage cross-border economic interests, such as shared tourism spots or irrigation resources.

The establishment process is now mandated to be highly democratic. According to Article 3, the creation of a BUM Desa must be decided through a Village Meeting (Musdes) and formalized via a Village Regulation (Perdes). For Joint BUM Desa, the decision is made through an Inter-Village Meeting (MAD) and legalized through a Joint Village Head Regulation.

Following the meeting, the enterprise must register to obtain official **legal entity status**. The Situbondo Regency Government is committed to facilitating this through intensive technical supervision. This legal status is critical, as it allows the enterprise to enter professional contracts with third parties, access bank financing, and represent itself in legal matters.

Organizational Structure: Ensuring Management Independence

One of the most revolutionary aspects of Perda Situbondo Nomor 1 Tahun 2026 is the emphasis on independence. The BUM Desa organization is strictly separated from the Village Government structure, though it remains under village policy oversight. The structure consists of:

1. Village Meeting (Musyawarah Desa)

As the highest authority, the Musdes holds 24 strategic powers. These include establishing the Articles of Association, appointing the board of directors, and deciding on the closure of non-prosperous units.

2. Advisor (Penasihat)

The position is held **ex-officio** by the Village Head. The advisor provides strategic input and has the authority to temporarily suspend operational managers in emergencies to save assets from potential loss.

3. Operational Manager (Pelaksana Operasional)

The Director must be a professional with high integrity and expertise. They serve a 5-year term and can be reappointed once. They are responsible for daily management and representing the BUM Desa in court.

4. Supervisor (Pengawas)

Supervisors have full access to internal documents and can request an investigative audit if the Musdes suspects financial irregularities. This strong oversight is designed to build community trust in the enterprise.

Capital, Investment, and Risk Management

Capital for BUM Desa in Situbondo can be sourced from village equity participation (via APBDes), community investment, and accumulated profits. However, the regulation ensures that the majority ownership remains with the Village to maintain community sovereignty.

BUM Desa is also allowed to seek external loans under strict conditions:

• The enterprise must have been profitable for two consecutive years.
• The loan tenor must not exceed the remaining term of the current Director.
• There must be a clear feasibility study and approval from the Musdes.

Regarding losses, the regulation introduces a “maturity of economic bureaucracy.” If a loss is caused by negligence or intentional misconduct by managers (advisors, directors, or supervisors), they are **personally liable** for the loss. If the loss is purely a result of normal business risk (force majeure), it is recorded as an operational expense. This ensures that managers do not make high-risk investment decisions without careful calculation.

Transformation of Ex-PNPM Funds into LKD

Article 44 of Perda Situbondo Nomor 1 Tahun 2026 addresses a significant legacy issue: the revolving funds from the former PNPM Mandiri Perdesaan. All such funds must now transform into Joint BUM Desa acting as **Village Financial Institutions (LKD)**.

This policy is designed to save community assets and ensure they are managed under a valid legal framework. Profits from these LKD units are explicitly prioritized for poverty alleviation programs in the participating villages. This transformation, known as PNPM to BUMDesma transformation, is a key component of the 2026 rural economic agenda.

Transition and Effectiveness

This regulation became effective on March 3, 2026. BUM Desa established prior to this date are granted a transition period of **one year** to adjust their structure and administration. Furthermore, the Regent of Situbondo is mandated to issue technical **Regent Regulations (Perbup)** within six months to provide detailed operational guidelines for field managers.

Conclusion

In summary, Perda Situbondo Nomor 1 Tahun 2026 is a tangible manifestation of the Regency’s commitment to professional, independent, and accountable village economic governance. With a structure separate from the village government and a strict risk management framework, BUM Desa now has the potential to grow into respected village corporations.

The legal certainty offered by this regulation is the primary asset for villages in Situbondo to avoid legal issues while ensuring that village wealth is used for the maximum prosperity of all residents. As we move through 2026, managers must stay updated on these rules to ensure their enterprises remain on the right track toward sustainability.

Summary of Technical Provisions (Perda 1/2026)

Visit the Village Regulations page for official access.