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The Articles of Association of a BUM Desa represent the fundamental rules governing the organization’s conduct. As mandated by Government Regulation (PP) Number 11 of 2021, these articles are an inseparable part of the Village Regulation on the Establishment of BUM Desa. Without a ratified AD, a village enterprise cannot secure its status as a formal legal entity.
This document format, structured into 7 Chapters and 39 Articles, has been verified for successful registration with the Ministry of Law and Human Rights (Kemenkumham), ensuring the BUM Desa operates as a professional legal subject.
The Preamble: A Constitutional Mandate
The preamble of the AD highlights the transformation of BUM Desa under the Job Creation Law. It affirms that BUM Desa is no longer just a village activity but a Legal Entity with the following strategic roles:
- Consolidator: Managing community products and services.
- Producer: Meeting local community needs.
- Incubator: Developing local small businesses.
- Public Service Provider: Enhancing village welfare and generating original income (PADes).
In line with Article 33 of the 1945 Constitution, BUM Desa is built on the principle of togetherness and mutual cooperation (Gotong Royong), with the Village Assembly (Musdes) serving as the highest decision-making authority.
Scope of Business Operations
The primary intent of establishing a BUM Desa is to manage assets and develop investments for the maximum welfare of the community. Authorized business sectors include:
- Agriculture, Plantations, Livestock, and Fisheries.
- Trading and Service Industries.
- Arts, Entertainment, and Recreation.
- Microfinance: Providing financial access for the poor who are excluded from formal banking.
- Any other sectors within the village’s authority.
Core Strategic Objectives
A professionally drafted AD ensures the BUM Desa achieves these eight key objectives:
- Economic Viability: Developing sustainable units in agriculture and trade.
- Scalability: Expanding into services and tourism as the market grows.
- Financial Inclusion: Institutionalizing micro-lending for marginalized groups.
- Partnership Building: Creating collaborations based on mutual benefit.
- Empowerment Integration: Aligning business activities with community empowerment programs.
- Poverty Alleviation: Encouraging active community participation in economic resilience.
- Tourism Information: Serving as the hub for local and regional Village Tourism (Desa Wisata).
- SME Consolidation: Transforming the village into a centralized hub for MSME products.
Conclusion
The Articles of Association (AD) are the “constitutional heart” of a BUM Desa. By adopting a format that has passed Kemenkumham verification, the village ensures its enterprise is legally protected and bankable. This document is essential for 2025 governance, moving the village from traditional management to a modern corporate framework that satisfies Village SDG 17: Partnerships for the Goals.
