Indonesia Conference Directory

Although villages still receives allocation of funds from the government, they has been given the authority to manage the natural resources in their area. The BUMDes that are currently emerging can be categorized into two types, namely BUMDes that were created before the village law and BUMDes that were created after the village law. BUMDes that were created before the village law are currently growing rapidly because the law provides an opportunity to get more funding and cooperate with other parties. This paper will present how the characteristics of ownership of natural resources have impacts on the successful management of village natural resources. This paper argues that BUMDes that were created after the implementation of the village autonomy law showed several tendencies. First, villages with natural resources owned by the village government, the management carried out by BUMDes and managed to have a positive impact on the welfare of the community. Second, villages with natural resources that are controlled by the civil society show tendency of a tense relationship between the village government and owners. Third, villages that do not have natural resources allocate funds for the management of village resources but do not bring any benefits at all.