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The Development of Regionally Owned Enterprises (BUMD) in Indonesia

-Regionally Owned Enterprises (BUMD) are companies established and owned by local governments. In general, BUMDs in Indonesia in carrying out their business are charged with three missions, namely as a public servant, as a source of Local Revenue (PAD), and also as an agent for driving regional economic growth. The authority of regional governments to form and manage BUMDs As mandated in the 1999 GBHN and Law No. 25 of 2004 concerning the National Development System. The embodiment of regional autonomy in economic growth and equality among regions is carried out through various policy directions, primarily to develop regional autonomy in a broad, tangible, and responsible manner in the context of community empowerment, as well as various economic and community institutions in the region, conducting further study and policy advice concerning the enactment of regional autonomy for provincial, district and city areas as well as rural areas and realizing a equitable financial balance between the center and the regions by prioritizing broader regional interests through decentralization of licensing and investment and management of resources in the regions. The presence of BUMD is expected to contribute to the development of an area so as to create equity and growth in an