Institutional Analysis (Case Study on Village-Owned Enterprises In Improving The Economy of the Community of Bulo Village, Pancarijang District, Sidenreng Rappang Regency)

Abstract

This study examines the institutional role of Village-Owned Enterprises (BUMDes) in enhancing the community economy of Bulo Village, Panca Rijang District, Sidenreng Rappang Regency. Using a qualitative descriptive approach, data were collected through interviews, observations, and documentation. The analysis applied Scott’s (2001) institutional framework, encompassing three pillars: regulative, normative, and cognitive-cultural. Findings reveal that BUMDes Mabbulo Sipeppa operates based on existing regulations (PERDES and AD/ART), emphasizing deliberation, compliance, and community engagement. However, challenges persist, including limited managerial capacity and inconsistent enforcement of regulations. Despite these obstacles, the BUMDes demonstrates progress through training initiatives, business diversification (such as sewing and livestock units), and active collaboration with the community. The study concludes that while BUMDes Mabbulo Sipeppa significantly contributes to local economic improvement, its sustainability and independence remain dependent on effective governance, consistent policy application, and continued capacity building.