Legal Policy in Village-Owned Enterprises After the Enactment of the Law on The Job Creation In The Framework of Village Society Welfare

Abstract

The essence of law is to provide welfare to the society. Law as a tool of social engineering for society makes people obey it. Dynamic legal developments encourage progress towards society from various aspects of people's lives. One of them, the enactment of Law No. 11 of 2020 on Job Creation, encourages changes to the order of setting norms that affect other laws that are affected by it. One of those affected by the Job Creation Act is the establishment of BUMDes (Village-Owned Enterprises). Through the provisions of Article 117 and Article 185 b of Law Number 11 of 2020 concerning Job Creation, the government needs to establish a derivative norm that regulates Village-Owned Enterprises. In 2021, the Government issued a regulation related to Village-Owned Enterprises, which is Government Regulation of the Republic of Indonesia Number 11 of 2021 concerning Village-Owned Enterprises. In this provision, it is stated that Village Owned Enterprises, hereinafter referred to as BUMDes, are legal entities established by the village and/or together with villages to manage businesses, utilize assets, develop investment and productivity, provide services, and/or provide other types of business for the maximum welfare of the Village community. In a nutshell, the existence of Village-Owned Enterprises aims to prosper the village community, with the type of business sector owned and support the productivity of rural communities based on village community empowerment. In this study, a legal approach was used with the aim of exploring legal policies towards BUMDes with the enactment of the Job Creation Act. Keywords: Job Creation Act, BUMDes, welfare