“Seeing and believing Principle” in Creating Public Value: Context of Indonesian Village Owned Enterprise Establishment (Best practice in Ponggok Village, Central Java)
Keywords:
Public value, village-owned enterprises, community involvementAbstract
This paper intends to identify the public value derived from local communities and to describes how the creation of public value in the process of establishment of village-owned enterprises in Indonesia. The establishment of this village-owned enterprise has become a trend in the last four years, as an implementation of the village fund allocation program launched by the Indonesian government at the end of 2014. The village government tries to take advantage of the village's allocation of funds to the greatest extent of rebuilding the village economy through the establishment of village-owned enterprises. With the establishment of a village owned business entity is expected to be based on the potential and needs of local communities, so as to improve the welfare of the village community. This research was conducted in Ponggok villages of Central Java that successfully established village-owned enterprises as best practices through public value creation model based on local wisdom. This research uses a mixed approach that is quantitative and qualitative. Data collection both through in-depth interviews and questionnaires. This study concludes that the successful management of BUMDes at Ponggok Village is determined by the success of the village government in setting up the public value derived from community perspective in gradually stages firstly ‘commitment’, ‘immediate benefits’, ‘orientation to local resources’, and finally ‘community involvement’. One of the original values drawn from the character of the local community to gain their support is firstly showing the success evidence, then the public will believe (seeing and believing).
