Transparent budget management of Amarta, a BUM Desa (village-owned company) in the village of Pandowoharjo, Sleman Sub-district, Sleman Regency

Foto: Suparmo 10 Photos Agus Setyanta reads over a draft for the establishment of the Amarta BUM Desa in the office of a waste management company in Jetakan, Pandowoharjo, Sleman. 12 August 2016. | Photo: Suparmo
Suparmo, Machmud N.A
IRE (Institute for Research and Empowerment)

The village company Amarta in the village of Pandowoharjo was officially founded by the forum Musyawarah Desa (Musdes) on 3 June 2016. The forum is a consultative public body (BPD). The Musdes forum consists of members of the BPD, the Pandowoharjo administration, personalities from the community, village institutions, and community associations. The process to found the BUM Desa began with establishing a team responsible for developing a business plan based on the decree of the village head. The results of the team – in accordance with the needs and economic prospects appropriate to Pandowoharjo – led to the introduction of a disposal company. It was thought to be a good idea since there are many factories, companies and restaurants in Pandowoharjo, including one offering mushroom dishes.

The BUM Desa team recommended setting up waste disposal as a first step for the village-owned company. Amarta BUM Desa received 50 million rupiah as start-up capital, which was provided by the Pandowoharjo budget. Because the village of Pandowoharjo village supplied the start-up capital, the head of the BUM Desa is required to report the activities of the company every month to the village head. After the report is approved by the village head, the director of the BUM Desa must also put up a public notice to this effect on the notice board in the village. These are the rules.

The name Amarta itself originates from the name of a kingdom founded by the five Pandawa brothers after they conquered the fifth ruler of the Wanamarta Forest. This was a spirit the brothers could imitate. After the brothers defeated the spirit, Amarta became a prosperous and happy kingdom. It is hoped that Amarta BUM Desa, like the kingdom, also contributes to the welfare of the people.
The IRE (Institute for Research and Empowerment) is an independent institution of academic communities founded in 1994 in Yogyakarta. The focus of IRE activities is to strengthen and expand democracy by encouraging a critical attitude in civil society and the state. The topics that currently concern the institute are divided into three areas: strengthening democracy, governance and reform policy, and community development and empowerment issues that include poverty reduction and village reforms.