Community participation and social capital in rural enterprise development: lessons from BUMDes in Bintan Regency

Abstract

"Village-Owned Enterprises (BUMDes) are institutional instruments designed to strengthen the village economy through community participation and the utilization of local social capital. However, practices in various regions indicate that not all BUMDes can develop sustainably. This study aims to analyze the role of community participation and social capital in BUMDes development in Bintan Regency. The central research question this study addresses is: How do community participation and social capital interact to shape the performance and sustainability of BUMDes in coastal villages? This research used a qualitative approach with a case study design. Data was obtained through in-depth interviews, field observations, and documentation studies with BUMDes managers, village government officials, and village facilitators. The results indicate that the level of community participation in BUMDes planning and management remains largely symbolic. Social capital in the form of trust, social networks, and norms of cooperation has not been fully capitalized on as productive economic strength. Weak institutional capacity and limited regulatory support also weaken the function of participation and social capital in driving BUMDes business performance. This study adds to existing BUMDes research by exploring the dynamics of coastal social capital and the institutionalization of community participation in the context of village governance. This study confirms that the success of BUMDes development is determined not only by managerial aspects, but also by the quality of community participation and the strength of social capital formally institutionalized in village governance."