The Role of Village Fund and BUMDes Resources on Sustainable Rural Economic Development

Abstract

Purpose: Theobjective of this studyis to analyze the influence of Village Funds on BUMDes resources, Village Funds on sustainable rural economic development, BUMDes resources on sustainable rural economic development, Village Funds on rural economic development through BUMDes resources, and the role of BUMDes resources in mediating the influence Village Funds for sustainable rural economic development.

Methodology/approach: This research was conducted in Buleleng Regency, Bali Province. The research population was all Village Government officials in Buleleng Regency. The sample was determined using the convenience sampling method. The research respondents were 88 village government officials consisting of village heads, village secretaries, and heads of government sections.This research uses an associative quantitative approach. Data was collected using a questionnaire. The data analysis technique uses structural equation modeling (SEM).

Results/findings: The results of the analysis show that Village Funds have a significant positive effect on BUMDes resources. Village Funds have a positive and insignificant effect on sustainable rural economic development. BUMDes resources have a significant positive effect on sustainable rural economic development. Village Funds have a significant positive effect on rural economic development through BUMDes resources. BUMDes resources fully mediate the influence of Village Funds on sustainable rural economic development.

Limitations: Research limitations only analyze two independent variables that are thought to influence sustainable rural economic development.

Contribution: Research findings contribute to the achievement of sustainable rural economic development. Both central and regional governments should increase support for the development of BUMDes resources. Research findings contribute to the economy. Until now, research analyzing the influence of Village Funds and BUMDes resources on Sustainable Rural EconomicDevelopment is still limited.

Novelty: The novelty of this research is in the village fund indicators.