Proceedings of the 2nd Global Conference on Business Economic and Sustainable Development Trends (AGC-BEST) 2019, October 17-18, 2019, ,

The Contribution of Village Owned Enterprises in Improving Rural Economy in Nagan Raya 1*Wahyuddin, 2 Ar Royyan Ramly, 3 Muslim A. Djalil, and 4 Mirna Indriani 1Lecturer of Islamic Banking Department, Faculty of Islamic Studies, Universitas Serambi Mekkah, Indonesia; 2Lecturer of Islamic Banking Department, Faculty of Islamic Studies, Universitas Serambi Mekkah, Indonesia; 3Senior Lecturer of Islamic Economic Department, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia; 4Senior Lecturer of Accounting Department, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia; *Corresponding author: [email protected]

Abstract - This study aims to analyze the influence of the contribution of Village-Owned Enterprises (BUMDes) in Improving the Economy and welfare of rural communities in Nagan Raya district. Nagan Raya, with a wealth of potential villages, owned such as agriculture, plantations, animal husbandry, and small industries. However, the management of BUMDes in Nagan Raya Regency has not been maximized. The research sample in ten sub-districts in Nagan Raya that has a Village-Owned Enterprises (BUMDes) is selected BUMDes that are already running or active in each district. The research sample locations were taken by Gampong Langkak, Gampong Purworejo, Gampong Cot Kumbang, Gampong Alue Peusaja, Gampong Alue Gajah, Gampong Krueng Itam, Gampong Garu, And Gampong Simpang Peut. This study uses a quantitative approach and uses descriptive statistical estimates, to the contribution of BUMDes to economic improvement in Nagan Raya district. The dependent variable used is the Village Growth Percentage (Y), while the independent variable used is Social Capital (X1), Regional Potential (X2), Human Resources (X3). The results showed the influence of the three Social Capital Variables (Log_X1), and Regional potential (Log_X2) influencing the contribution of BUMDes in improving the economy in the village. While Human Resources (Log_X3) does not significantly influence the contribution of BUMDes in improving the economy in Kabupaten Nagan Raya. From the F test results obtained F-count = 3.648 with p-value = 0.026 <0.05 so it can be concluded that H1 is accepted. Keywords - Village Owned Enterprises (BUMDES), Village Economy Improvement, 1. INTRODUCTION Research on the Empowerment of the village economy has been researched by Natsuda (2012) and Park, A & Wang, (2010), explaining that to improve the village economy, the business must be done based on the village's potential. Specifically, Hackett (2015), Akella & Eid (2018), Wiagustini (2015), Galera & Borzaga (2009), and MacDonald & Howorth (2018), stated that the concept of social enterprise became a social mission for those doing business both in cities and in cities village. One form of social undertaking is to make donations (charity) to the poor and weak groups. To fulfill the basic needs of the poor, this will be realized with the support of adequate readiness of HR management managers of BMUDes (Chintary & Lestari, 2016), while Wiagustini's research (2015), analyzes the factors that influence village credit institutions (LPD) towards BUMDes, that the cooperative attitude of the village community is one of the factors that must exist in running the BUMDes. As one of the sample districts in this study is Nagan Raya Regency. Nagan Raya, with a wealth of potential villages, owned such as agriculture, plantations, animal husbandry, and small industries. However, the management of BUMDes in the Nagan Raya Regency has not been maximized (Ramly & Mursyida, 2018). The main cause is the uneven mapping of local potential, only a part of the area that looks potential to obtain empowerment from the economic sector both from local and provincial governments. This is also reinforced by the weak cultural conditions for the management of village fund management, lack of adequate Human Resources (HR), lack of village management skills, lack of business assistance, very little access to capital, not supported by good facilities, as well as community behavior which is less participatory in the village. So that the chain of poverty of the community is never complete and very far from the word prosperous, as evidenced by the 2016 poverty rate of 30,310 people or 19.25% and increased in 2017 by 30,060 people or 19.34% (BPS, 2018). To answer this problem, it is important and urgent to conduct scientific research on empowering Sharia-based BUMDes and local potential to realize an independent village through maximizing the village's potential. In the interest of improving the village economy and community welfare, the BUMDes must be maximized in full, based on the author's observation, it should be that the BUMDes in the Nagan Raya sub-district are evaluated and studied academically as a reflection of the effects of an increase in the village economy.

2. LITERATURE REVIEW In general, village-owned enterprises (BUMDES) have two functions, namely; first the commercial function and social function. The BUMDes commercial function, in this case, can support village economic activities such as businesses owned by BUMDes units, village markets, shop houses, mineral water refill, village cooperatives, renting, trading and broking. Then the social function, BUMDes not only see business interests but also pay attention to the potential and ability of human resources to have a capable capacity in managing the potential of the village.

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Wahyuddin, Ar Royyan Ramly, Muslim A. Djalil, Mirna Indriani

According to Prasetyo (2016), researching the role of BUMDes in community development and empowerment by using quantitative descriptive analysis. The indicators used are community participation, patterns of utilization of village funds, and the contribution of BUMDes to the community. The results obtained indicate that community participation in BUMDes activities is still lacking because community knowledge of the BUMDes program is still small. Related to the pattern of more utilization in the physical development of the village while the contribution to community empowerment is still not optimal due to several obstacles, especially the BUMDes budget. In implementing BUMDes, it has been mentioned above that the role of BUMDes is as an economic and social business. The role of the economy, of course, can improve the welfare of rural communities through businesses managed by the BUMDes and its contribution to the PADes. While the social role can be seen from how the BUMDes will be able to empower the community, increase interaction and solidarity that has begun to be fostered so far through BUMDes activities that are managed collectively (Prasetyo, 2016). According to Ihsan (2018), BUMDes is a business entity whose entire or most of the capital is owned by the village through direct participation from village assets that are separated to manage assets, services, and other businesses to improve the welfare of the village community. Establishment of BUMDes aims to improve the village economy, optimize village assets to benefit the welfare of the village, improve community efforts in managing the economic potential of the village, develop business cooperation plans between villages and/or with third parties, create opportunities and market networks that support public service needs residents, opening up employment opportunities, increasing the welfare of the community through improving public services, growth and equitable distribution of the village economy and increasing the income of the village community and the original income of the village. (Ihsan, 2018). Then research Kehik, & Mael (2017). Analysis of the village fund program in improving the community's economy. There are several indicators compiled according to utilization for the needs of rural communities, namely, Conformity between programs and needs; Budgeting accuracy; Accuracy of planning; Adequacy of funds; Program alignment; and clarity of responsibility. Then the results obtained from this study indicate that the management of village funds has been carried out by taking into account the appropriateness of the program with community needs. To ensure the entire set of community activity programs in ADD management, good and appropriate financial management within the budget has been set. This is done with the consideration that the funds that have been prepared in connection with activities that are urgent in the life of the community are carried out following the available budget lines taking into account and taking into account that the activities carried out guarantee the interests and welfare of the community. Alignment of the program of activities carried out using the overall development activities that must be directed at the interests and needs of the community so that the results of the development carried out are not redundant and in the end, the community gives a positive response to the series of development activities carried out. Accountability is carried out systematically based on the whole existing program, thus automatically opening a positive nuance of openness or transparency. Then Mutolib, Nikmatullah & Effendi (2019). Examining the analysis of the contribution of the Village Fund in the development of BUMDes using in-depth interviews with village officials and BUMDes managers and field observations. The results of this study indicate that the village fund in the village of Hanura has contributed to the development of BUMDes. Agricultural/livestock/ fishery business production is Rp. 12,265,000.00. Then the Budget for the Procurement of Marketing Infrastructure Activities (Development of shops and cooperatives) is Rp. 104,700,000.00, and Activities for the Establishment and Development of Community Economic Enterprises (for Capital Expenditures for Equipment and Other Machines and Animal and Livestock Capital Expenditures) of Rp. 39,999,997.00. Business units owned by BUMDes Hati Nurani include 1) Market Management, 2) Products and Services Units, 3) Home Industries. One of BUMDes marketing strategies is through online sales through the BUMDes website. Sulaksana and Nuryanti (2019). Researching the BUMDes development strategy using swot analysis and the QSPM matrix. The results of the study showed that BUMDes Mitra Sejahtera was formed from 2015 and has three business sectors, namely mountain land management, agricultural and automotive kiosks (grass track). Internal environmental factors of BUMDes Mitra Sejahtera were observed, namely management, finance, human resources, facilities and infrastructure, and legal umbrella, while external environmental factors observed were technology, business partners, government, village potential, community participation, and competitors. The strategy that becomes the main priority for developing BUMDes Mitra Sejahtera is to become a business distributor or as a supplier of goods for agricultural kiosks with the highest TAS (Total Attractive Score) value. The most interesting research is Hekmatyar & Nugroho (2018). The author wants to see the role of BUMDes in social development by using descriptive analysis. The result is that the village economic unit is collective between the village government and the village community, where the economic undertakings carried out contain elements of economic business and social business. Second, BUMDes has an important role in irrigation management and is fully responsible for the distribution of water to each village's agricultural land in the agricultural production process. Third, BUMDesa has the responsibility of sharing the results of irrigation management efforts to the lowest layers in the village. Finally, BUMDes has the potential to be managed in the form of village treasury land. Village treasury land management by BUMDesa can be used as a strategy to improve economic quality and reduce inequality in the village population. This can be done with a strong commitment among all stakeholders to distribute the village treasury land to the lowest strata of the villagers with affordable rental fees. Then Fatimah's research (2018), saw by designing an entrepreneurial model that would be managed by BUMDes. The research model is carried out by designing intrapreneur using Resource-based View (RBV) theory and Social capital. The results showed several Tetrapreneur recommendations that must be carried out by local stakeholders and the village government both at the level of the Entrepreneur Chain (Chainpreneur), Entrepreneur Quality (Marketpreneur), Market Entrepreneur (Market-

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Proceedings of the 2nd Aceh Global Conference on Business Economic and Sustainable Development Trends (AGC-BEST) 2019, October 17-18, 2019, Banda Aceh, Indonesia

preneur) and Entrepreneur Brand (Brandpreneur). The Entrepreneur recommendation is the basis for the Q-BUMDES system development approach for Bleberan Village entrepreneurship development. The Q-BUMDES system forms an integrated database system to control quality so that rural entrepreneurs can be more adaptive to their welfare. The application of the Tetrapreneur Model in Bleberan Village is expected to be a role model for other villages, especially in the Special Region of Yogyakarta as a model of sustainability in poverty alleviation without leaving local wisdom towards economic security and adaptive well-being. The latest is Nugroho's research results (2018). This study uses the root cause analysis (RCA) and the analytical hierarchy process (AHP). The results of the study there are several recommendations namely; synergy between BUMDes and UMKM able to move the village economy from the potential that exists in the village. Then there must be a priority of the government's integration policy with the BUMDes management. Then the BUMDes management must prioritize policies that support MSMEs among them; (i) availability of licensing services for BUMDes; (ii) the existence of local government policies in mediating between business actors and capital providers; (iii) the existence of a minimum wage policy that benefits business people and workers; (iv) conducting product technology training; and (v) conducting marketing innovation training. But in this article, the author wants to analyze the contribution of BUMDes in improving the economy of the community in Nagan Raya Regency. The indicators compiled cite several previous studies such as Fatimah's research (2018), Prasetyo (2016), Hekmatyar & Nugroho (2018), and Sulaksana & Nuriyanti (2019). The first indicator of social capital. This indicator states that in the management of BUMDes, social capital is needed in the community. The BUMDes is a collective institution within the village, so it is not appropriate if the BUMDes is not managed jointly by the village community and for the interests of the village. Secondly, resources can be divided into two parts, namely natural resources or natural potential in the village, then human resources related to human capacity and quality in the village. We can analyze the village potential through the theory of Resource-Based view (RBV) or an assessment of the potential quantity of available statistical data. Then the human potential, which can manage village-owned enterprises (BUMDes), means that the ability of management can be based on the level of education and experience that has been held by the management because the BUMDes function will later improve the economy in the community and improve the social community itself. the last is community participation in supporting and encouraging BUMDes business units as instruments to improve the quality of welfare and social quality in society. As a driver of economic growth, the accumulation of resources or capital is needed to increase the production capacity of a region. There are three types of capital needed in the accumulation process, namely physical capital (capital stock), human capital (human capital), and social capital (Arsyad, 2015). Human capital is an investment in human beings in the form of expertise, norms, and health obtained from the process of education, training, and health services (Todaro, 2014). Human capital influences the economy of a region or country through an increase in the productivity of the labor economy as well as technological improvements. Thus, in this study, several indicators were arranged that could objectively contribute to the contribution of village-owned enterprises (BUMDes). The first indicator of social capital, second, the indicator of the potential of the region, the third indicator of Human Resources (SDI). Then the analysis to be used in this paper cites several models of analysis conducted from previous research to support several indicators. As research Fatimah (2018), Nugroho (2018), Prasetyo (2016), and Faedlulloh (2018), to compile each analysis model used from indicators of social capital, regional potential and human resources (SDI). Then these indicators can be used as variables analyzed in a quantitative approach using multiple regression analysis. So this study tries to analyze descriptively quantitative (Prasetyo, 2016), related to the contribution of BUMDes in Nagan Raya district. From the literature review above, the hypotheses proposed and tested in this paper are as follows: H1: Social Capital has a positive and significant effect on BUMDes in Nagan Raya Regency. H2: Regional Potential has a positive and significant effect on BUMDes in Nagan Raya Regency. H3: Human Resources (SDI) has a positive and significant effect on BUMDes in Nagan Raya Regency).

3. RESEARCH METHOD Types of research This study uses a quantitative approach and uses descriptive statistical estimates, to the contribution of BUMDes to economic improvement in Nagan Raya district. The dependent variable used is the Village Growth Percentage (Y), while the independent variable used is Social Capital (X1), Regional Potential (X2), Human Resources (X3). The form of the regression equation can be formulated as follows: Y = β0 + β 1X1 + β 1X2 + β 1X3 + ℯi…….(1) To make it easier to obtain the regression coefficient parameters needed to assess the BUMDes business contribution to economic improvement in Nagan Raya Regency, along with the sensitivity level of regional economic growth changes as a result of changes in the factors that influence it, the model is transformed into a form logarithm, so it becomes: Log Y = logβ0 + β 1 logX1 + β 1logX2 + β 1logX3 + ℯi…… (2) Where: Y = Village Growth (IDM) X1 = Social Capital X2 = Regional Potential X3 = Human Resources

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Wahyuddin, Ar Royyan Ramly, Muslim A. Djalil, Mirna Indriani

β0 = constant β1 = Regression Coefficient ℯ = Variable Error

Location and Samples The location of this study is located in Nagan Raya district, Aceh Province. The sampling technique uses a purposive sampling method, namely through the determination of villages in ten sub-districts in Nagan Raya that have Village-Owned Enterprises (BUMDES, and BUMDes), which are already running or active BUMDes selected in each subdistrict. The research samples were taken by Langkak Village, Purworejo Village, Cot Kumbang Village, Alue Peusaja Village, Alue Gajah, Krueng Itam, Gapa Garu, and Peut Crossing, then the data source in this study, the data source used was primary data and secondary data. primary data were obtained from interviews and distributing questionnaires to 5 administrators of Village-Owned Enterprises (BUMDes), and 15 people in each village, while secondary data were obtained from the Central Statistics Agency (BPS) such as Village Potential (Podes), Empowerment Agency the community (BPM) Nagan Raya, such as the 2018 Village Build Index (IDM), documentation studies, and the internet

Data Analysis Technique Statistic analysis The results of this data processing are used to answer the problems that have been formulated. This analysis is used to show the relationship between the independent variable (X) with the dependent variable (Y). The analysis first uses the validity and reliability test then the hypothesis is tested using multiple regression tests to find out whether an independent variable influences the BUMDes in Nagan Raya Regency. The operational variable is composed of the dependent variable obtained from the Village Index Percentage built-in 2018, then the independent variable is obtained from, the Human Resources Variable as a human resource variable in the category of labor or BUMDes administrators in the village. Regional Potential Variable is the percentage of potential obtained from the 2018 Podes analysis in Nagan Raya district. Then we can refer to the variable of social capital as community participation that works hand in hand in the success of the BUMDes business or participate in the BUMDes program.

4. RESULTS AND DISCUSSION Location Overview This research was carried out in Nagan Raya Regency. Nagan Raya Regency is geographically located at locations 03˚40 '- 04˚38' North Latitude and 96˚11 '- 96˚48' East Longitude with an area of 354,490 Km2, with boundaries: north bordering Central Aceh District, the south is bordered by the Indian Ocean and Southwest Aceh District, the east is bordered by and Southwest Aceh District and the west is bordered by . If we look at the area of the area per sub-district, Darul Makmur Subdistrict has the largest area of 102,793 Km2 or 29.00 percent of the total area of the regency. Then followed by Beutong District with an area of 101,732 Km2 or 28.70 percent. Whereas the 10 (ten) other sub-districts respectively were Beutong Ateuh Banggalang 11.45 percent, Tadu Raya9.79 percent, East Seunagan7.10 percent, Tripa Makmur 5.34 percent, Kuala3.41 percent, Kuala Pesisir 2.15 percent, Seunagan 1, 60 percent, and Suka Makmue 1.45 percent of the total area of Nagan Raya Regency. Based on Nagan Raya Regency Qanun Number 2 and Number 3 of 2011, then definitively the number of districts in 2013 in 10 districts and 222 villages. Each village is headed by a Geucik (village head) who has the authority to regulate the interests including the development of public health to realize an optimal degree of health for all people who live in the village area. (Health Office, 2017).

Based on BPS Nagan Raya Regency data for 2017, the total population is 161,329 people, consisting of 81,508 men and 79,820 women, when seen from population density per Km2maka, then Nagan Raya Regency with an Area of 354,490 Km2, every Km2 only inhabited by an average of 1 (one) person, and if seen from 5 households there are 46.865 households with an average population density per five households. (BPS, 2017). Then in this study, only using 8 villages from 4 districts as research samples, including; Cot Kumbang village Seunagan sub-district, Langkak village Kuala Pesisir sub-district, Purworejo village, and Simpang Peut kuala sub-district, Alu Peusaja village Suka Makmu sub-district, Alue Gajah village, Gapa Garu sub-district, and krueng itam Tadu Raya sub-district. Village-Owned Enterprises (BUMDes) found in the Four Districts are as follows:

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Proceedings of the 2nd Aceh Global Conference on Business Economic and Sustainable Development Trends (AGC-BEST) 2019, October 17-18, 2019, Banda Aceh, Indonesia

Table 1 No Village Business Status 1 Langkak Sewa ruko, pasar ACTIVE desa dan Alat pelaminan 2 Purworejo Kebun Sawit dan ACTIVE Sewa pelaminan 3 Alue Peusaja. Ternak Lembu ACTIVE dan Sewa Pelaminan 4 Alue gajah Rumah Pajang, ACTIVE dan wisata 5 Cot Kumbang Usaha Ayam ACTIVE petelur 6 Simpang Peut Toko desa dan ACTIVE pemyewaan Tratak 7 Gapa Garu Rumah Pajang, ACTIVE dan wisata 8 Krueng Itam Rumah Pajang, ACTIVE dan wisata

In table I above, there are several villages with BUMDes and business units being run, such as the Langkak village which has a shop-rental business unit, the cot beetle village that runs the laying hens business unit. Then there are several villages working together to establish a jointly owned enterprise (BUMDesma) in the Tadu Raya sub-district which manages shelter houses, kiosks, and tourist attractions. Because of this, the BUMDes business unit in Nagan Raya regency has utilized the existing potential such as natural potential and village financial assistance from the government for the welfare of its people. Then the aim of improving the management of village potential is to improve the standard of living of rural communities, where the majority of village communities have a low level of the worthiness of life, therefore one of the goals of increasing the potential of villages managed by the village itself to raise the standard of living of rural communities and the formation of village resilience and independence. Besides increasing the potential of villages in the utilization of natural resources is directed so that there is a tightening of people's income and is managed directly by the village government (Ramly, Wahyuddin, Mursyida, & Mawardati, 2017).

Results of Validity and Reliability Tests Validity test Significance tests were performed using r tables. The value of r table for sample 30 with a significance level of 5% shows r table of 0.361. R table = 0.361 (df = n-2 = 90-2 = 88, α = 5%). If r count is greater than r table and the value of r is positive then the question is said to be valid. The following are the results of the validity test.

Table 2 Validity test Correlations LOG_X1 LOG_X2 LOG_X3 LOG_Y1 LOG_X1 Pearson 1 .086 .043 .312* Correlation Sig. (1- .325 .410 .047 tailed) N 30 30 30 30 LOG_X2 Pearson .086 1 -.261 -.399* Correlation Sig. (1- .325 .082 .014 tailed) N 30 30 30 30 LOG_X3 Pearson .043 -.261 1 .004 Correlation Sig. (1- .410 .082 .492 tailed) N 30 30 30 30

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Wahyuddin, Ar Royyan Ramly, Muslim A. Djalil, Mirna Indriani

LOG_Y1 Pearson .312* -.399* .004 1 Correlation Sig. (1- .047 .014 .492 tailed) N 30 30 30 30 *. Correlation is significant at the 0.05 level (1-tailed). Source: Primary data processed

Based on the validity test shows that the calculated r-value is greater than the value of r table. With this result, the questionnaire used by the variable Social Capital and Potential Areas and Human Resources were declared valid as a variable measurement tool. Reliability Test Reliability is a measurement tool for measuring a questionnaire which is an indicator of a variable or constructs. A constructor variable is said to be reliable if it gives a Cronbach Alpha value> 0.6. The following are the results of the reliability test:

Table 3 Instrument Reliability Test Reliability Statistics Cronbach's N of Items Alpha .645 4 Source: Primary data processed

From the above data, it can be seen that each variable of 4 items is reliable because it has an alpha value greater than alpha 0.645> 0.6. This means that the independent variables used are more moderate under alpha 0.90 which is more reliable. Multiple Linear Regression Test Results. Variant Analysis Results

ANOVAb Sum of Mean Model df F Sig. Squares Square 1 Regression .068 3 .023 3.648 .026a Residual .161 26 .006 Total .229 29 a. Predictors: (Constant), LOG_X3, LOG_X1, LOG_X2 b. Dependent Variable: LOG_Y1 Source: data processed from SPSS 16.0

Based on the results of the analysis of variance obtained, it appears that the regression analysis model used is quite good. This is with p_value regression = 0.026 (greater than 0.05). This means that the chosen independent variables can explain very well and are very significant in the analysis of the contribution of BUMDes to the improvement of the village economy in Nagan Raya Regency. Regression Test The relationship of social capital, Regional Potential, and Human Resources with BUMDes contribution analysis in economic improvement is formulated in the form of economic growth function in Nagan Raya Regency. The model chosen is a double logarithm model or a constant elasticity model.

Table 5 Logarithmic Multiple Regression Test Results Coefficientsa Model Unstandardized Standardized t Sig. Coefficients Coefficients

B Std. Error Beta 1 (Constant - -.439 .295 .149 ) 1.489 LOG_X1 .360 .167 .357 2.159 .040

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Proceedings of the 2nd Aceh Global Conference on Business Economic and Sustainable Development Trends (AGC-BEST) 2019, October 17-18, 2019, Banda Aceh, Indonesia

LOG_X2 - -.090 .033 -.465 .012 2.712 LOG_X3 -.105 .135 -.133 -.778 .444 a. Dependent Variable: LOG_Y1 Source: Data processed from SPSS 16.0

Based on the partial test results the influence of Social Capital (Log_X1) on the contribution of BUMDes in improving the village economy obtained a t-count of 2,159 with a p-value of 0.040. The H1 hypothesis that is built on this variable is that social capital has a positive and significant effect on the contribution of BUMDes in Nagan Raya Regency. Because the p-value of 0.040 <0.05 can be concluded that H1 is accepted. This shows that there is a positive and significant effect of social capital (Log_X1) on BUMDes contribution to the improvement of the village economy. The partial test results of the influence of Regional Potential (Log_X2) on BUMDes contribution using the SPSS program obtained a t-count of -2.712 with a p-value of 0.012. The H2 hypothesis built on this variable is the potential of the region to have a negative and significant effect on the BUMDes contribution. Because the p-value of 0.012 <0.05 can be concluded that H2 is accepted. This shows that there is a negative and significant influence of Regional Potential (Log_X2) on the BUMDes contribution to the improvement of the village economy. The partial test results of the influence of Human Resources (Log_X3) on BUMDes contribution using the SPSS program obtained a t-count of -0,778 with a p-value of 0.444. The H3 hypothesis that was built on this variable was that Human Resources had a negative and not significant effect on the contribution of BUMDes in improving the village economy. Because the p-value is 0.444> 0.05, it can be concluded that H3 is rejected. This shows that there is a negative and insignificant influence of human resources (Log_X3) on BUMDes contribution to the improvement of the village economy in Nagan Raya district.

5. DISCUSSION The partial test results of the influence of Human Resources (Log_X3) on BUMDes contribution using the SPSS program were calculated to be -0,778 with a p-value of 0.444. The H3 hypothesis that was built on this variable was that Human Resources had a negative and not significant effect on the contribution of BUMDes in improving the village economy. Because the p-value is 0.444> 0.05, it can be concluded that H3 is rejected. This shows that there is a negative and insignificant influence of human resources (Log_X3) on BUMDes contribution to the improvement of the village economy in Nagan Raya district. The human resource variable has a negative and not significant effect, meaning that there is a decrease in the influence of the group of human resource variables, where the data is raised between the educational levels of the BUMDes manager. According to Zuhdiyaty & Maryunani, (2019). Only a small portion of the community has tertiary education or higher, on average the people who become directors of BUMDes are junior and senior high school/equivalent. Therefore, it will affect the management of BUMDes. (Hidayati, 2015). This is the following research Prasetyo (2016), states. Related to the pattern of more utilization in the physical development of the village while the contribution to community empowerment is still not optimal due to several obstacles, especially the BUMDes budget. 6. CONCLUSIONS The results of the analysis of variance obtained, it appears that the regression analysis model used is quite good. This is with p-value regression = 0.026 (greater than 0.05). This means that the chosen independent variables can explain very well and are very significant in the analysis of the contribution of BUMDes to the improvement of the village economy in Nagan Raya Regency. Furthermore Simultaneously the influence of the three Social Capital Variables (Log_X1), and Regional potential (Log_X2) influences the contribution of BUMDes in improving the economy in the village. While Human Resources (Log_X3) does not significantly influence the contribution of BUMDes in improving the economy in Kabupaten Nagan Raya. From the F test results obtained F-count = 3.648 with p-value = 0.026 <0.05 so it can be concluded that H1 is accepted. Future studies are suggested to add independent variables or replace independent variables from this study with other variables that are allegedly able to influence the contribution of BUMDes in improving the economy in Nagan Raya Regency. And it is necessary to examine further about other variables that are considered capable of influencing the contribution of BUMDes. Thus, the results that will be obtained are expected to be more accurate. 7. ACKNOWLEDGMENTS (OPTIONAL) Thank the Ministry of Research and Technology of Higher Education (KEMENRISTEKDIKTI), Indonesia, for providing research support by providing grants for inter-university collaborative research (PKPT) funding in 2019-2020 with budget ceiling number 235 / SP2H / LT / DRPM / 2019, on March 11, 2019. Also, thanks to the research institute of Universitas Serambi Mekkah which supports and describes the researcher's permission and the millions of partner research teams from the University of Syiah Kuala University in Banda Aceh.

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Wahyuddin, Ar Royyan Ramly, Muslim A. Djalil, Mirna Indriani

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