PERFORMANCE OF VILLAGE-OWNED ENTERPRISES (BUMDES) IN THE ECONOMIC DEVELOPMENT OF VILLAGE COMMUNITIES IN THE BRANTAS SOURCE OF BATU CITY

This research aims to examine the performance of the Village-Owned Enterprises (VOE). in Sumberbrantas Village, Bumiaji District, Batu city, in supporting the economic development of the community. The focus of the research includes the analysis of factors affecting the performance of VOE, evaluation of its impact on community welfare, and identification of challenges and obstacles in managing business units. This research uses a qualitative approach with a case study method. Data were collected trough in-depth interviews, participatory observation, and document analysis. Research result show that VOE plays an important role in local economic development through business unit successfylly attracts tourists through its natural scenery and social media-based promotions, especially on instagram. However, the economic benefits have not been evenly distributed to all layers of sociaty. Factors hindering the performance of VOE include limited capital, suboptimal management, regulations that restrict business innovation, and competition with similar business units in the surrounding area. However, to sustain the business, more innovation is need, especially in developing product based on local agricultural produce that can add value. This strategy can increase community participation more broadly and have a greater economic impact. The management of VOE requires government policy support such as training management, access to technology, and funding.