Local Economic Development Concept: A Comparison between Indonesian Village-Owned Enterprises and Chinese Township and Village Enterprises

Abstract
This research was conducted to understand the concept of local economic development by
comparing Township and Village Enterprises (TVE) in China with Village-Owned Enterprises (BUM
Desa) in Indonesia. Given that today, local economic development is needed to strengthen the national
economy, especially in Indonesia. BUM Desa and TVE are business entities initiated and owned by
villages that broadly impact the general public's welfare. According to China's economic history, TVEs
became the largest contributor to China's economic revival after the reform in 1978. Meanwhile,
Indonesia has also experienced the same thing, namely the economic crisis in 1998 and the 2019 Corona
Virus disease (COVID) pandemic, which caused global economic stagnation. This type of research is
normative juridical research using a comparative approach, comparative legislation, and conceptual
approaches. The results show that there are similarities between Indonesia and China in managing
businesses at the village level, which lies in (1) local government participation in providing business
opportunities and exports abroad; (2) institutional strengthening; and (3) natural resource management.
Meanwhile, the government conditions. Differences lie in: (1) business management model: (2) economic
policy direction; and (3) local government conditions.
Keywords: TVE; BUM Desa; Economic Reform; Village; Pancasila