CREATIVE ECONOMY CONCEPT FOR SUSTAINABILITY OF VILLAGE-OWNED ENTERPRISES: LITERATURE REVIEW

Abstract

Law No. 6/2014 on Villages provides autonomy to villages to manage resources and direct development through the establishment of Village-Owned Enterprises (BUMDes) as drivers of local economic development. BUMDes is expected to be a platform for community economic activities through professional management while still being based on the village's original potential. The challenge lies not only in establishing BUMDes, but also in maintaining its existence. The high number of BUMDes formed in each village has increased competition among BUMDes, as well as with other business sectors. In reality, many BUMDes have not been able to contribute significantly to village revenues. In the face of such competition, BUMDes need to adopt competitive advantage strategies, one of which is through the application of creative economy concepts. This change is also in line with Presidential Regulation No. 69/2019 that merges the Ministry of Tourism with the Ministry of Creative Economy in the Onward Indonesia Cabinet. Although previously, in 2014, a Creative Economy Agency was established, the tourism portion remains more dominant compared to the creative economy, as seen in the data from the Ministry of Tourism and Creative Economy. This article uses a literature review approach to investigate the causes and impacts of the paradigm shift in BUMDes management. With reference sources derived from research articles. The literature review used is sourced from articles available on google scholar within the period 2014-2024. The researcher conducted a literature review to answer research questions involving the concepts of creative economy, village-owned enterprises and BUMDes. It was found that the creative economy plays a role in the sustainability of BUMDes. This study concludes that the application of creative economy concepts plays an important role in supporting the sustainability of BUMDes.