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.
KEY WORDS
VOEs, Indonesia, recession, economic law, village.