VILLAGE-BASED RESOURCE ECONOMY: SYNERGY OF VILLAGE-OWNED ENTERPRISES (BUMK), APPROPRIATE TECHNOLOGY, AND VALUE CHAINS FOR BERAU'S ECONOMIC INDEPENDENCE

Abstract

The economic independence of villages in Indonesia is still constrained by three interrelated structural problems: the potential of superior products that have not been optimally managed, unequal market access, and low adoption of appropriate technologies at the upstream value chain level. This research aims to develop an integrative model of synergy among Village-Owned Enterprises (BUMK), appropriate technology, and strengthening the value chain as an instrument of village-based economic independence, with a case study of Berau Regency, East Kalimantan. The novelty of the research lies in the formulation of the "Triple-Chain Convergence" model, which integrates three chains at once, namely the production chain (upstream), the technology chain (process), and the market chain (downstream), into one measurable SOE governance framework, different from previous studies that generally discussed the three aspects partially. The method used is a descriptive-analytical qualitative approach with document studies, triangulation of official secondary data (Ministry of Villages and Rural Development, BPS, Berau Regency Community and Village Empowerment Office), and systematic review of 18 Sinta- and Scopus-indexed journal articles published in 2022–2025. The results of the study show that BUMKs in Berau Regency, which totalled eight active pilot units at the 2024 East Kalimantan Bumdes Expo, face major obstacles to upstream value chain efficiency and digital literacy limitations, but show the potential for significant turnover increases when appropriate technology and digital platforms are adopted simultaneously. The theoretical contribution of this research is to expand the framework of Community-Led Development with a spiritual-ethical dimension from the perspective of economic Sufism, which positions BUMK not just as an administrative entity but as a testament (medium) of collective blessings. The practical implication is concrete policy recommendations for the Berau Regency Government in designing a roadmap for strengthening BUMK based on superior product clusters.