Indonesia Conference Directory

Promoting prosperity is one of the goals of the Indonesian Nation. In order for these objectives to be achieved, an effort needs to be made, namely through development in all lines. Village as a legal community unit has the authority in the field of village administration, village, community development, and empowerment of village communities which based on community initiatives, origin rights, and village customs. As an implementation of its authority, the village is given village funds. The government further regulates the priority of village funds use with the Village Ministers Regulation, Development of Disadvantaged Regions and Transmigration No. 19 of 2017 concerning Priority Determination of the Use of Village Funds in 2018. Article 4 paragraph 2 states that the priority for the use of village funds is prioritized to finance the implementation of programs and activities that are cross-sectoral in nature. These programs and activities include areas of superior village or rural area product activities, village owned enterprise or joint village owned enterprise in accordance with village authority. This paper is intended to describe the reasons villages have established a joint village-owned enterprises and the constraints they face. This research is located in Wonogiri, Malang and Kendal. Data collection is done by interviews and document studies. The results show that the establishment of joint village-owned enterprises is caused by regulations that regulate villages to carry out empowerment and the need to carry out the process of transforming government programs that have ended, the problem faced by them is that there are still no detailed provisions for joint village-owned enterprises which is the transformation of the PNPM program.