LEGAL POLITICS OF INDONESIAN VILLAGE-OWNED ENTERPRISES

Abstract

The village is a driving force for a country's development that plays a vital role in providing the needs and sustainability of the country's economy. Villages have the authority to be autonomous and independent of increasing village independence, one of which is to establish a business entity that follows the characteristics of natural resources and the needs of rural communities called Village Owned Enterprises (VOEs). VOEs, economic institutions in the village, have a very strategic function and role in supporting the implementation of village economic sovereignty and democracy in Indonesia as a business entity characterized by a village. However, the legal politics governing VOEs in Indonesia also impact the management of VOEs. This paper wants to examine the legal politics of VOEs regulation in Indonesia. This paper is a normative legal research using a statutory, conceptual, and historical approach, which will be analyzed descriptively. The results showed a paradigm shift in the construction of VOEs, which was initially regulated as a business entity characterized by a village. It was changed in Law Number 11 of 2020 concerning Job Creation, which stipulates that the status of VOEs as business entities is legal. Meanwhile, related to the form of business entity, it is regulated as a legal entity characterized by a village.

Keywords

• voes
• indonesia
• recession
• economic law
• village