A Legal Governance Model for Village-Owned Enterprise (BUMDes) Partnerships with Private Tourism Destination Operators in Optimizing Village Original Revenue

DOI

10.2991/978-94-6239-809-2_23How to use a DOI?

Keywords

Agreement; BUMDes; Private Partnership; Private Tourism Destination Operators; Village Income

Abstract

BUMDes, strengthened as legal entities under PP 11/2021, are authorized to partner with private actors in managing village tourism assets. Field research in Tampaksiring Village, Bali reveals a critical governance gap: the partnership between BUMDes and a Private Tourism Destination Manager solely on a signed receipt, without any formal contract. This arrangement fails to satisfy the validity conditions under Article 1320 of the Indonesian Civil Code, generating legal vulnerability and undermining long-term protection of Village Original Income. This study employs a two-stage qualitative approach. The interpretive stage involved in-depth interviews, observation, and regulatory analysis. The model development stage proceeded through a Focus Group Discussion and a co-design process for drafting formal cooperation agreements. The primary novelty is a four-component BUMDes–Private Partnership Governance Model: (1) a value foundation integrating Green Governance with Tri Hita Karana philosophy; (2) an institutional framework delineating the authorities of BUMDes, the Village Government, the BPD, and the tourism operator; (3) a transparent profit-sharing mechanism based on a progressive formula from verified gross revenue; and (4) an accountability component mandating quarterly reporting and independent BPD audit access. The model is operationalized through a formal fifteen-article cooperation agreement satisfying Article 1320 of the Civil Code and institutionalized through a Village Regulation requiring execution of a MoU and MoA for all tourism partnerships. This research contributes empirically grounded technical guidance bridging the normative mandate of PP 11/2021 and the operational realities of village tourism partnerships in Bali.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Ida Ayu Putu Sri Astiti Padmawati
AU  - Ni Ketut Nadila Suryasari
AU  - Sinta Oktavina
PY  - 2026
DA  - 2026/10/24
TI  - A Legal Governance Model for Village-Owned Enterprise (BUMDes) Partnerships with Private Tourism Destination Operators in Optimizing Village Original Revenue
BT  - Proceedings of the International Conference on Sustainable Green Tourism Applied Science - Social Applied Science 2026 (ICoSTAS-SAS 2026)
PB  - Atlantis Press
SP  - 227
EP  - 237
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-94-6239-809-2_23
DO  - 10.2991/978-94-6239-809-2_23
ID  - Padmawati2026
ER  -