Sustainability and Strategy for Development of the Village-Owned Enterprise (BUMDes) Concept for Coastal Communities through Triple Bottom Line and Interpretative Structural Modeling

The benefits of the existence of Village-Owned Enterprises (BUMDes) in coastal areas are still not felt by the local community, so their sustainability is also in doubt. There are internal and external factors such as the commitment of the government and other stakeholders and a more appropriate concept development strategy is needed to strengthen its effectiveness. The objectives of this research are 1) to measure the sustainability of BUMDes in empowering the economy of coastal communities, and 2) to formulate a strategy for developing the BUMDes concept in driving the economy of coastal communities. This research method uses a survey method which will take place in 2022-2023 in six Tapal Kuda districts, in East Java Province. Three sub-districts were taken from each sample district and one village was taken from each sample sub-district based on the health conditions of BUMDes using Cluster sampling. The sample for this research came from a population of 30 BUMDEs administrators, 60 village government officials, and 120 coastal community residents who were determined intentionally. To answer the first objective, analysis was used using the Corporate Sustainability approach using the Triple Bottom Line model approach, and to answer the second objective, analysis was used using the Interpretative Structural Modeling approach. The research results reveal that 1) in the economic dimension, the sustainability of BUMDes in the research area is sustainable, and 2) The most basic variable and has a real influence on the other nine variables in building a strategy for developing the BUMDes concept is efforts to minimize the vested interest of village heads and the impact of local politics. Therefore, each variable, either independently or collaboratively in forming the Reachability Set, Antecedent Set, Interceptions, and coordinates, affects the other variables. These phenomena include the variable of increasing capital participation in BUMDes from various sources which influences three other variables, namely the variable of awareness for village governments regarding the strategic importance of BUMDes in empowering the economy of coastal communities, the variable of optimizing and diversifying business units by local wisdom, and the variable of strengthening Statutes and bylaws (Village regulations) for BUMDes governance.