The Role of the Village-Owned Enterprise of Kota Kandis Dendang Village in Community Economic Empowerment Based on Sharia Principles

Masyanto
Author ORCID iD
Institut Islam Al-Mujaddid Sabak (IIMS) Tanjung Jabung Timur, Jambi, Indonesia
Wargo
Author ORCID iD
Institut Islam Al-Mujaddid Sabak (IIMS) Tanjung Jabung Timur, Jambi, Indonesia
Hasna Dewi
Author ORCID iD
Institut Islam Al-Mujaddid Sabak (IIMS) Tanjung Jabung Timur, Jambi, Indonesia
Reza Arjmand
Author ORCID iD
Department of Education, Linnæus University, Växjö, Sweden
Abstract

This study explores the role of Village-Owned Enterprises (BUMDes) in promoting community economic empowerment in Kota Kandis Dendang Village through the application of Islamic economic principles. Despite the presence of various development programs initiated by BUMDes, public participation remains limited, largely due to low awareness and engagement. By adopting a qualitative field research approach using an empirical juridical method, the study collected primary data through observation, structured interviews, and documentation involving five key informants. The findings reveal four main themes: lack of community involvement, efforts to implement Sharia values, managerial and regulatory challenges, and emerging signs of social and economic empowerment. BUMDes has initiated inclusive programs that reflect Islamic ethical values, fostering trust and local support. However, structural constraints such as insufficient institutional capacity and absence of formal Sharia governance frameworks hinder its optimal implementation. This research contributes to the academic discourse by framing BUMDes as a hybrid institution economic and ethical rooted in religious values, and provides a practical reference for enhancing rural governance through Sharia-based models.

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Keywords

BUMDes, Islamic Economics, Community Empowerment, Rural Development, Sharia-Based Governance.

How to Cite

Masyanto, Wargo, Dewi, H., & Arjmand, R. (2025). The Role of the Village-Owned Enterprise of Kota Kandis Dendang Village in Community Economic Empowerment Based on Sharia Principles. Zabags International Journal of Economy, 3(2), 289–297. https://doi.org/10.61233/zijec.v3i2.118

References

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Dauri, M. (2019). Badan Usaha Milik Desa (BUMDes) sebagai sarana pemberdayaan ekonomi masyarakat desa. Jurnal Ilmiah Ilmu Administrasi Publik, 9(2), 159–170. https://doi.org/10.26858/jiap.v9i2.9887
Idriyanti, S., & Agustina, Y. (2024). The role of BUMDes in the economic empowerment of village communities in Indonesia. Journal of Rural Development, 19(2), 113–127.
Published & Citation
2025-08-30
Copyright (c) 2025 The Author(s). This article is published by Zabags International Journal of Economy and distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0).
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