Optimizing the Village Business Entity Management Using the Budget Structure

Abstract

One of the government’s efforts to increase the Village Original Revenue/VOR (Pendapatan Asli 
Desa/PADes) was by setting up a Village’s Business Entity/VBE (Badan Usaha Milik Desa/BUMDes). The VBE 
had an important role for the development of a village. Today not all villages in Indonesia had VBE. Also, 
the villages which had VBE mostly had not well managed. There should be an active role of the central, 
province, and districs/city government to guide the village in achieving the wealthy, independent, and 
competitive village. The Village Budget was a comprehensive tool starting from th planning, controlling, 
up to the evaluating the performance. Therefore, the structure of the Village Revenue and Spending 
Budget/VRSB (Anggaran Penda Patan dan Belanja Desa/APBDes) was important to create a better 
management of the VBE.