Institutional engineering in agriculture during the co-19 pandemic

Institutional engineering in agriculture during the co-19 pandemic

At the time of a pandemic like today, farmers in Bali have difficulty marketing their agricultural products, because some consumer institutions such as hotels and restaurants do not operate as they normally would. Layoffs are mostly done by the tourism industry so that people's purchasing power decreases, people can not be free to go out to shop, while agricultural products accumulate in production centers without anyone distributing them to consumers who stay silent at home. Therefore, there should be initiations to help farmers to access markets, especially the domestic market. Deputy Minister of Villages, Disadvantaged Regions, and Transmigration (Vice Minister of PDTT), Budi Arie Setiadi said the covid 19 pandemic provided many lessons especially related to the importance of digital marketing (delivered during a webinar). To achieve this goal, rural agricultural institutions such as farmer groups are immediately transformed into village corposaries to help farmers access markets during the pandemic, one of which is establishing BUMDes in villages to help farmers gain wider market access and build downstream industries to absorb excess products so that they are guaranteed absorption of supply and price certainty. BUMdes which have the support of the government is one of the rural corporations that is suitable to be developed at this time to help passionate farmers return to production in addition to increasing farmers' income, also has a role to maintain food security. support in the form of market infrastructure is needed so that this new institution can quickly communicate with consumers. Village-Owned Enterprises (BUMDes) are village businesses formed / established by the village government whose capital ownership and management are carried out by the village government and the community. The legal basis for BUMDes includes 1) Based on Law Number 32 of 2004 concerning Regional Government, it is explained that villages can establish BUMDes to accommodate the economic activities of rural communities; 2) Government Regulation (PP) Number: 72 of 2005 concerning Villages, states that BUMDes are legal entities. However, in its journey BUMDes does not have a foundation to become a legal entity, it is the business unit that allows for legal entity; 3) Regulation of the Minister of Home Affairs (Permendagri) Number: 39 of 2010, the Village Owned Enterprises (BUMDes) was formed in several villages in several districts; and 4) Law No. 6 of 2014 concerning Villages provides a new spirit for villages to empower themselves by giving birth to a spirit of village development, meaning that the village is placed as the initial milestone in the success of national development. So that the strengthening of the village can not be separated from the strength of the village in exploring the potential of local wisdom and the spirit of mutual cooperation of its citizens.

There are seven main characteristics that distinguish BUMDes from commercial economic institutions in general, namely: 1) This business entity is owned by the village and managed jointly; 2) Business capital sourced from villages and from the community through equity participation (shares or shares); 3) Operationalisation uses a business philosophy that is rooted in local culture; 4) The business sectors that are run are based on the potential and results of market information; 5) The benefits obtained are aimed at increasing the welfare of members (capital partners) and the community through village policies; 6) Facilitated by the Government, Provincial Government, Regency Government, and Village Government; 7) The operationalization is jointly controlled between the village government, BPD, and members. The difference with the existing cooperatives is that BUMDes Capital does not come from member contributions such as cooperatives, but from village governments; community savings; government assistance, provincial government, and district / city government; loan; and / or business cooperation with other parties. This gives management speed and flexibility to increase capital to expand the business without waiting for member contributions. In addition, BUMDes are more inclusive than cooperatives, private businesses or community groups working in the village realm. Cooperatives are indeed inclusive for members, both at the village level and broader level, but cooperatives remain exclusive because they are only for members. Let's socialize BUMDes in the centers of agricultural production so that farmers get certainty about prices and supplies, so they can be quiet in production.