Jakarta (Antara Bali) - Indonesia's Rural Development and Transmigration Ministry would speed up the development of holding companies for Village-run Enterprises (BUMDes) in anticipation of the fast growing BUMDes sector.
At present, the number of BUMDes units across the country has reached 22,000.
"The aim behind establishing holding companies for the BUMDes is to ensure that these firms would not remain only in name. BUMDes already has a legal basis, and the trend has caught up fast. However, not all villages have capable human resources to manage such firms. We will establish a holding company to make sure that every BUMDes unit has access to training," Rural Development and Transmigration Minister Eko Sandjojo said in a statement here on Thursday.
The holding company would be managed by an affiliate company of the state-owned firm, but the ministry has offered regional governments to establish their own holding companies.
"I have discussed the issue with regional administrations to establish holding companies. Now, of the total registered BUMDes, only 8,000 are operating actively and 4,000 of them are making profits. Holding companies would help them to grow," he added.
Eko informed that with 74,910 villages across the country, BUMDes would serve as a huge network to attract suppliers.
The government, he continued, would also extend subsidies through BUMDes once the local firms show significant growth. The village-run firms are also expected to work in coordination with local cooperative units.
"Cooperative units and BUMDes are two different things. While cooperative units will use their profits for the interest of their members, the BUMDes will use these for the village's common interest. The BUMDes can accommodate cooperative units, such as farmers' cooperative unit," Eko explained. (WDY)
COPYRIGHT © ANTARA News Bali 2017
At present, the number of BUMDes units across the country has reached 22,000.
"The aim behind establishing holding companies for the BUMDes is to ensure that these firms would not remain only in name. BUMDes already has a legal basis, and the trend has caught up fast. However, not all villages have capable human resources to manage such firms. We will establish a holding company to make sure that every BUMDes unit has access to training," Rural Development and Transmigration Minister Eko Sandjojo said in a statement here on Thursday.
The holding company would be managed by an affiliate company of the state-owned firm, but the ministry has offered regional governments to establish their own holding companies.
"I have discussed the issue with regional administrations to establish holding companies. Now, of the total registered BUMDes, only 8,000 are operating actively and 4,000 of them are making profits. Holding companies would help them to grow," he added.
Eko informed that with 74,910 villages across the country, BUMDes would serve as a huge network to attract suppliers.
The government, he continued, would also extend subsidies through BUMDes once the local firms show significant growth. The village-run firms are also expected to work in coordination with local cooperative units.
"Cooperative units and BUMDes are two different things. While cooperative units will use their profits for the interest of their members, the BUMDes will use these for the village's common interest. The BUMDes can accommodate cooperative units, such as farmers' cooperative unit," Eko explained. (WDY)
Editor : I Gusti Bagus Widyantara
COPYRIGHT © ANTARA News Bali 2017