S udies Managemen and Finance Economics, o Jou nal
0504-2644 (online): ISSN 0490,-2644 (p in ): ISSN
5202 Oc obe 10 Issue 80 Volume
8.317 Fac o : Impac ,03-i10-10.47191/je ms/ 8 DOI: A icle
6076-5966 No: Page
JEFMS, Volume 08 Issue 10 Oc obe 2025 www.ije m.co.in Page 6596
In eg a ion o Local Wisdom in Pa icipa o y Accoun ing Sys ems o
Communi y Empowe men in Suppo ing Sus ainable Village-Owned En e p ise
De elopmen
Muh A diansyah Syam1*, Syah il Djaddang1, Ha o insyah2, Hasnawa i3, Mohammad Roziq4, Shan i Lisand a1
1Mas e o Accoun ing – Facul y o Economics and Business, Pancasila Uni e si y – Jaka a
2Doc o al P og am in Economics - Facul y o Economics and Business, Pancasila Uni e si y – Jaka a
3Accoun ing P og am – Swadaya School o Economics – Jaka a
4Doc o al S uden in Economics – Facul y o Economics and Business, Pancasila Uni e si y – Jaka a
ABSTRACT: This a icle explo es he in eg a ion o local wisdom in o pa icipa o y accoun ing sys ems as a s a egic app oach o
s eng hening he go e nance o Village-Owned En e p ises (BUMDes) in Indonesia. BUMDes a e designed as ins umen s o
mobilizing local po en ial, os e ing economic independence, and suppo ing sus ainable u al de elopmen . Howe e , many
BUMDes ace challenges in accoun abili y, anspa ency, and inancial managemen capaci y. D awing upon concep ual analysis,
li e a u e e iew, and case s udies, his s udy highligh s ha pa icipa o y accoun ing no only unc ions as a echnical inancial
ool bu also as a social mechanism ha enables meaning ul communi y engagemen in planning, budge ing, epo ing, and
moni o ing. In eg a ing local wisdom, such as musyawa ah (delibe a ion) and go ong oyong (coope a ion), along wi h cus oma y
en i onmen al ules, s eng hens social us , enhances legi imacy, and ensu es inclusi i y in inancial accoun abili y. The indings
e eal ha pa icipa o y accoun ing, when oo ed in local cul u al alues, empowe s communi ies o ansi ion om passi e
bene icia ies o ac i e s akeholde s, he eby inc easing owne ship and sus ainabili y o BUMDes p og ams. Mo eo e ,
digi aliza ion o accoun ing sys ems, i designed wi h cul u al sensi i i y and simplici y, u he imp o es anspa ency, epo ing
accu acy, and public accessibili y. None heless, challenges pe sis in e ms o digi al li e acy, in as uc u e limi a ions, and
ha moniza ion be ween local no ms and o mal egula ions. The s udy con ibu es heo e ically o he discou se on u al
go e nance and p ac ically p o ides insigh s o BUMDes manage s, policymake s, and s akeholde s on designing cul u ally
esonan , pa icipa o y, and adap i e accoun ing models. By in eg a ing local wisdom, social pa icipa ion, and app op ia e
echnology, BUMDes can balance economic pe o mance wi h social, cul u al, and en i onmen al sus ainabili y.
KEYWORDS: BUMDes, pa icipa o y accoun ing, local wisdom, anspa ency, accoun abili y, sus ainable u al de elopmen ,
digi aliza ion.
1. INTRODUCTION
Sus ainable illage de elopmen equi es communi y economic managemen ha is accoun able, anspa en , and sensi i e o
he local socio-cul u al con ex . In Indonesia, Village-Owned En e p ises (BUMDes) a e posi ioned as s a egic ins umen s o
mobilize local po en ial, s eng hen illage economic independence, and educe po e y h ough a ious business uni s based on
he needs o esiden s (Dulkiah e al., 2023; Ge u e al., 2025; Hilmawan e al., 2023; Ka yana & As u i, 2023; Mahend a e al.,
2022; S i ejeki, 2018). Howe e , a ious s udies show ha he sus ainabili y pe o mance o BUMDes s ill a ies: some a e g owing
and s eng hening, bu many a e hampe ed by inconsis en go e nance p ac ices, limi ed inancial adminis a ion capaci y, and
accoun abili y mechanisms ha a e no ye ully e ec i e (Ame ieska e al., 2021; And iana e al., 2021; A diyansyah &
Pesudo, 2022; Hapsa i e al., 2020; Hilmawan e al., 2023). Amid hese challenges, s eng hening accoun abili y and anspa ency
is a non-nego iable p e equisi e o main aining he social legi imacy o BUMDes and ensu ing he ai dis ibu ion o bene i s
(A diyansyah & Pesudo, 2022; Les a i Widiah Ningsih & Lingga Yuliana, 2025; Romdoniah & Kamela, 2024; Sulis yowa i &
Na aliawa i, 2022).
In ecen yea s, he discou se and p ac ice o "pa icipa o y accoun ing" has egained i s place as an app oach ha is no only
echnical bu also social, encou aging meaning ul ci izen in ol emen in he cycle o planning, budge ing, implemen a ion,
In eg a ion o Local Wisdom in Pa icipa o y Accoun ing Sys ems o Communi y Empowe men in Suppo ing
Sus ainable Village-Owned En e p ise De elopmen
JEFMS, Volume 08 Issue 10 Oc obe 2025 www.ije m.co.in Page 6597
epo ing, and moni o ing (Kamba u e al., 2025; Romdoniah & Kamela, 2024; Sulis yowa i & Na aliawa i, 2022; Yuliani e al.,
2024) . This app oach iews inancial in o ma ion no me ely as an adminis a i e p oduc bu as a medium o public dialogue
ha enables ci izens o unde s and esou ce alloca ion, assess he pe o mance o manage s, and p o ide cons uc i e eedback.
Empi ical e idence shows ha ci izen pa icipa ion has a posi i e and signi ican e ec on BUMDes' inancial managemen , bo h
h ough s eng hening o ganiza ional commi men and inc easing compliance wi h epo ing s anda ds (As u i e al., 2021; . In
o he wo ds, pa icipa o y accoun ing p o ides a social in as uc u e o ansla ing echnical in o ma ion in o legi ima e
collec i e decisions.
The con ex o u al Indonesia, ich in local wisdom such as coope a ion, consensus-based delibe a ion, cus oma y ins i u ions
ela ed o na u al esou ce managemen , and collec i e e hical no ms, p o ides a g ea oppo uni y o design "cul u ally esonan
go e nance." The in eg a ion o local alues in o pa icipa o y accoun ing p ac ices is belie ed o s eng hen social us , e ine
accoun abili y mechanisms, and ein o ce in o mal compliance, which is o en mo e e ec i e han o mal sanc ions (Do ongsihae
e al., 2022; Fi iyan i, 2019; Hu agaol e al., 2025; Kamba u e al., 2025; Nu wan o, 2025) .When delibe a i e o ums become
ins i u ional channels o epo ing and e alua ion, ci izens no only access igu es, bu also in e p e hei implica ions o
in e g oup jus ice, en i onmen al sus ainabili y, and local cul u al in eg i y . Thus, accoun ing does no s op a he ledge , bu is
p esen in he illage's public delibe a ion space.
On he o he hand, he dynamics o BUMDes sus ainabili y a e also closely ela ed o social capi al and inno a ion capaci y. Recen
esea ch highligh s ha he sus ainable pe o mance o BUMDes is suppo ed by in e nal-ex e nal us ne wo ks, mul i-
s akeholde collabo a ion, and he o ganiza ion's abili y o adap o ma ke and egula o y changes. In his amewo k,
pa icipa o y accoun ing se es as a mechanism o coo dina ing knowledge and p e e ences among ac o s, while local wisdom
p o ides a e e ence no m o assessing he "common good" beyond me e inancial indica o s. The combina ion o he wo helps
BUMDes balance economic goals (p o i abili y and business expansion) wi h socio-cul u al goals (cohesion, jus ice, p ese a ion
o alues) and en i onmen al goals (conse a ion o ca ying capaci y) (Kamba u e al., 2025; Ka yana & As u i, 2023; Ra ind a
A diana Da madi e al., 2025; Romdoniah & Kamela, 2024; Susan i, 2025) .
Digi al ans o ma ion u he s eng hens he abo e agenda. The implemen a ion o a digi al-based accoun ing in o ma ion
sys em in BUMDes has been p o en o imp o e he imeliness and accu acy o epo ing, acili a e ansac ion acking, and
expand access o in o ma ion o esiden s (A idayani e al., 2025; Bu le e al., 2022; Layn, 2024; Lib aeni & Meisdina, 2025) .
Al hough in as uc u e cons ain s, digi al li e acy issues, and ini ial esis ance o en a ise, a pa icipa o y men o ing app oach
can educe adop ion ba ie s and ensu e ha echnology is uly " i o pu pose" a he han adding adminis a i e bu dens.
Digi aliza ion wi h simple in e aces, local languages, and ea u es ha isualize non-mone a y con ibu ions, such as mu ual
assis ance, will make accoun ing sys ems mo e inclusi e and accep able (A idayani e al., 2025) .
Finally, he accoun abili y agenda o BUMDes canno be sepa a ed om he policy ecosys em and ongoing concep ual deba es.
Recen de elopmen s unde sco e he u gency o e o ming he BUMDes accoun ing sys em o align wi h con empo a y
anspa ency s anda ds, wi hou abandoning cul u al sensi i i ies and illage au onomy (Mu aqin e al., 2025) This deba e is no
a con lic be ween "mode n" and " adi ional," bu a he an e o o ma y obus accoun ing s anda ds wi h legi ima e local
no ms. Wi hin his amewo k, he in eg a ion o local wisdom and pa icipa o y accoun ing is no me ely an aes he ic choice, bu
an ins i u ional s a egy o s eng hen legi imacy, educe in o ma ion asymme y, and os e long- e m sus ainabili y (Hilmawan,
2023).
The main issue add essed by his s udy is how o design and implemen a pa icipa o y accoun ing sys em in BUMDes ha
subs an i ely in eg a es local wisdom, he eby imp o ing accoun abili y, anspa ency, and o ganiza ional sus ainabili y
pe o mance. This issue includes (1) low communi y pa icipa ion in he inancial managemen cycle, (2) limi ed li e acy and digi al
in as uc u e capaci y, (3) he a iabili y o local no ms ha a e some imes no in line wi h o mal p ocedu es, and (4) he need
o ha moniza ion wi h applicable accoun ing s anda ds and egula ions (Ningsih, 2025; Mu aqin e al., 2025; Do ongsihae, 2022).
In line wi h his, he objec i es o his s udy a e: i s , o iden i y o ms o local wisdom ha a e ele an o adop ion in
pa icipa o y accoun ing p ac ices; second, o analyze he in luence o he in eg a ion o local alues and ci izen pa icipa ion on
he accoun abili y, anspa ency, and sus ainable pe o mance o BUMDes; hi d, o o mula e an implemen a ion model
(including app op ia e digi iza ion op ions) ha is con ex ual, adap i e, and eplicable in a ious ypes o illages in Indonesia
(Lib aeni, 2025). Wi h hese achie emen s, he s udy is expec ed o con ibu e academically o he discou se on illage go e nance
as well as p o ide p ac ical bene i s in he o m o ope a ional guidelines o BUMDes manage s, illage go e nmen s, and b oade
s akeholde s.
In eg a ion o Local Wisdom in Pa icipa o y Accoun ing Sys ems o Communi y Empowe men in Suppo ing
Sus ainable Village-Owned En e p ise De elopmen
JEFMS, Volume 08 Issue 10 Oc obe 2025 www.ije m.co.in Page 6598
2. LITERATURE REVIEW
2.1 BUMDes and Village De elopmen
Village-Owned En e p ises (BUMDes) a e an impo an ins umen in mobilizing he local po en ial o illages o achie e economic
independence and communi y wel a e. Since he enac men o Village Law No. 6 o 2014, BUMDes ha e been posi ioned as he
d i ing o ce behind de elopmen based on illage asse s ha a e managed p o essionally and sus ainably. Recen s udies con i m
ha he exis ence o BUMDes can inc ease he capaci y o illages in p o iding basic se ices, economic empowe men , and job
c ea ion (Hilmawan, 2023). Howe e , he main challenge ha s ill exis s is he imbalance be ween he g ea po en ial and he
limi a ions o go e nance, so ha he implemen a ion o illage de elopmen p og ams h ough BUMDes has no been op imal.
The e o e, he ole o BUMDes is no only unde s ood as a business uni , bu also as an ins i u ion ha ep esen s independence,
inclusi eness, and communi y pa icipa ion in managing illage esou ces.
The con ibu ion o BUMDes o illage de elopmen can also be seen om i s abili y o gene a e Village O iginal Income (PADes)
and s eng hen he socio-economic ne wo k o he communi y. Resea ch (Hilmawan e al., 2023; Les a i Widiah Ningsih & Lingga
Yuliana, 2025; Yuliani e al., 2024) con i ms ha he applica ion o pa icipa o y, anspa en , accoun able, and sus ainable
managemen p inciples has a eal impac on inc easing PADes and he sus ainabili y o illage businesses. In line wi h his, Ningsih's
(2025) esea ch ound ha anspa ency and accoun abili y in illage inancial managemen encou age public us and inc ease
pa icipa ion in he de elopmen p ocess. Thus, he success o BUMDes is no only measu ed by inancial pe o mance, bu also
by he ex en o which his ins i u ion can build social legi imacy, public us , and collec i e solida i y in he illage communi y.
Fu he mo e, he in eg a ion o social and cul u al aspec s in BUMDes go e nance shows an impo an con ibu ion o he
sus ainabili y o illage de elopmen . T imu ni's (2025) s udy shows ha local cul u al wisdom becomes social capi al ha
s eng hens pa icipa o y go e nance and inc eases ci izen compliance wi h join managemen ules. These indings a e in line
wi h he esea ch by P ase ya and U ami (2025), which emphasizes ha social capi al, inno a ion, and mul i-s akeholde
collabo a ion a e de e mining ac o s o he sus ainable pe o mance o BUMDes. Meanwhile, Lib aeni's (2025) esea ch adds
ha he digi iza ion o accoun ing sys ems can imp o e he quali y o BUMDes' inancial epo ing while expanding access o
in o ma ion o he communi y. These indings collec i ely indica e ha illage de elopmen h ough BUMDes canno be
sepa a ed om a combina ion o economic, social, cul u al, and echnological aspec s, hus equi ing a comp ehensi e and
con ex ual go e nance app oach.
2.2. Pa icipa o y Accoun ing: Concep s and P inciples
Pa icipa o y accoun ing has de eloped as a concep ha places he communi y no only as bene icia ies bu also as ac i e ac o s
in he inancial managemen p ocess. This sys em p omo es he p inciples o anspa ency, accoun abili y, inclusi eness, and
ai ness in he inancial managemen o illage ins i u ions, including BUMDes. Recen esea ch emphasizes ha communi y
in ol emen in e e y s age o inancial managemen — om planning, budge ing, implemen a ion, o epo ing—can inc ease he
social legi imacy o manage s and s eng hen he communi y's sense o owne ship o illage en e p ises. Pa icipa o y accoun ing
also allows o he ecogni ion o non-mone a y con ibu ions om he communi y, such as labo in mu ual assis ance o he
u iliza ion o local esou ces, which a e no eco ded in con en ional inancial epo s bu ha e high economic and social alue.
In p ac ice, pa icipa o y accoun ing has been p o en o educe in o ma ion asymme y be ween BUMDes adminis a o s and
illage s. Ningsih's (2025) s udy shows ha inancial anspa ency and accoun abili y encou age communi y us in illage
adminis a o s and inc ease ci izen pa icipa ion in decision-making. Resea ch also ound ha in o ma ion disclosu e and di ec
communi y in ol emen ha e a posi i e impac on esiden s' pe cep ions o ai ness and sa is ac ion wi h he bene i s o illage
p og ams (. Thus, pa icipa o y accoun ing no only imp o es he quali y o epo ing bu also se es as a social empowe men
ins umen ha s eng hens communi y cohesion.
In addi ion, he in eg a ion o local cul u al alues in pa icipa o y accoun ing is an impo an ac o in c ea ing sus ainable
go e nance. Resea ch on (Do ongsihae e al., 2022; Pe ma a & Hapsa i, 2020; Pu namawa i e al., 2023; Romdoniah & Kamela,
2024; Sa i e al., 2025; Sob i, 2019; Yadi & P iha in, 2024) con i ms ha local cul u al wisdom, such as delibe a i e consensus and
coope a ion, se es as a mo al ounda ion in pa icipa o y accoun ing p ac ices, so ha he communi y is mo e accep ing and
suppo i e o he epo ing and inancial supe ision p ocesses. This is in line wi h esea ch (Kamba u e al., 2025; Ka yana &
As u i, 2023; Nu wan o, 2025; Pe ma a & Hapsa i, 2020; Sa i e al., 2025) which shows ha social capi al, including cus oma y
no ms and us ne wo ks, con ibu es signi ican ly o he sus ainable pe o mance o BUMDes. Thus, pa icipa o y accoun ing
ha espec s local alues can b idge he gap be ween o mal ules and social no ms, making illage go e nance mo e inclusi e
and legi ima e.
In eg a ion o Local Wisdom in Pa icipa o y Accoun ing Sys ems o Communi y Empowe men in Suppo ing
Sus ainable Village-Owned En e p ise De elopmen
JEFMS, Volume 08 Issue 10 Oc obe 2025 www.ije m.co.in Page 6599
Digi al ans o ma ion also plays an impo an ole in s eng hening he implemen a ion o pa icipa o y accoun ing. The
implemen a ion o echnology-based accoun ing sys ems in a numbe o illages has shown posi i e esul s in imp o ing he
anspa ency and e iciency o epo ing. Lib aeni's (2025) s udy e eals ha he use o digi al-based accoun ing sys ems in
BUMDes no only imp o es he quali y o inancial epo s bu also expands access o in o ma ion o he communi y, he eby
encou aging ci izen in ol emen in he o e sigh p ocess. Howe e , obs acles in he o m o limi ed digi al li e acy and
in as uc u e emain challenges ha mus be o e come h ough con inuous assis ance and aining. The e o e, pa icipa o y
accoun ing in he con ex o BUMDes canno be sepa a ed om he syne gy be ween socio-cul u al app oaches and he use o
echnology o espond o he need o adap i e, inclusi e, and sus ainable go e nance.
2.3. Local Wisdom in he Con ex o Villages
Local wisdom is a socio-cul u al he i age passed down ac oss gene a ions and se es as a mo al guide, no m, and social egula o y
mechanism in illage li e. Values such as coope a ion, delibe a i e consensus, and cus oma y p ohibi ions agains excessi e
exploi a ion o na u al esou ces o m he basis o he sus ainabili y o illage li e. Recen esea ch shows ha local wisdom plays
a s a egic ole in suppo ing sus ainable illage go e nance and economy (T imu ni, 2025). Local wisdom no only main ains he
balance o ela ionships be ween ci izens bu also s eng hens social legi imacy in he collec i e decision-making p ocess, including
in he managemen o BUMDes. Thus, local wisdom can be seen as social capi al inhe en in illage li e and capable o suppo ing
he success o communi y-based de elopmen .
In he con ex o BUMDes managemen , local wisdom se es as a social glue ha minimizes po en ial con lic s and s eng hens
esiden s' sense o owne ship o illage en e p ises. Communi y pa icipa ion in he supe ision and delibe a ion o BUMDes
managemen is in luenced by local cul u al alues ha uphold openness and jus ice (Kamba u e al., 2025; Sulis yowa i &
Na aliawa i, 2022; Yuliani e al., 2024) . In line wi h his, Layn's (2024) esea ch on he Sasi cul u e in Maluku emphasizes ha
cus oma y p ac ices can be an e ec i e ins umen in suppo ing he p inciples o g een accoun ing, which conside s
en i onmen al and sus ainabili y aspec s in inancial epo ing. These indings con i m ha he in eg a ion o local wisdom in o
he go e nance sys em no only s eng hens social aspec s bu also con ibu es o en i onmen al sus ainabili y, which is one o
he dimensions o sus ainable de elopmen .
In addi ion o being a social no m, local wisdom also se es as a alue sys em ha shapes he economic beha io o u al
communi ies. Social capi al, including ne wo ks o us and cus oma y ules, has a signi ican in luence on he sus ainable
pe o mance o BUMDes. Fo ms o communi y pa icipa ion based on he alues o mu ual coope a ion and delibe a ion ha e
been p o en o inc ease he e ec i eness o illage de elopmen p og ams and suppo he achie emen o he Sus ainable
De elopmen Goals (SDGs). This shows ha local wisdom is no only ele an in he adi ional sphe e, bu also compa ible wi h
he global de elopmen agenda ha emphasizes inclusi eness, jus ice, and sus ainabili y (Ame ieska e al., 2021; Dulkiah e al.,
2023; Pu a e al., 2024) .
Amids he ide o mode niza ion and digi aliza ion, he main challenge is how o main ain he ele ance o local wisdom wi hou
neglec ing he need o inno a ion and e iciency in illage go e nance. Lib aeni's (2025) s udy con i ms ha he digi aliza ion o
BUMDes accoun ing can be e ec i e i i is designed wi h conside a ion o he local cul u al con ex , such as he use o local
languages in he in e ace o he ecogni ion o non-mone a y con ibu ions in he epo ing sys em. In his way, local wisdom is
no posi ioned as an obs acle o mode niza ion, bu a he as a ounda ion o alues ha makes inno a ion mo e adap i e,
inclusi e, and accep able o he illage communi y. The e o e, he in eg a ion o local wisdom in BUMDes managemen needs o
be unde s ood as a hyb id s a egy ha combines adi ional alues wi h mode n go e nance p ac ices.
2.4. Accoun abili y, T anspa ency, and Local Wisdom in BUMDes
Accoun abili y and anspa ency a e impo an ounda ions in BUMDes go e nance. Bo h se e as mechanisms o ensu e ha he
use o illage unds and business p o i s can be openly accoun ed o o he communi y. Recen esea ch emphasizes ha low
accoun abili y is o en he main cause o weakening public us in BUMDes (Hilmawan, 2023). Con e sely, s ong anspa ency
encou ages ci izen pa icipa ion in he planning and o e sigh p ocesses, he eby c ea ing mo e inclusi e and ai inancial
managemen (Ningsih, 2025). Thus, accoun abili y and anspa ency no only ul ill adminis a i e equi emen s bu also
s eng hen he social legi imacy needed o he sus ainabili y o BUMDes.
The in eg a ion o local wisdom in o he BUMDes accoun abili y sys em p o ides added alue in main aining public us .
Cus oma y no ms such as delibe a ion and coope a ion can se e as social con ol mechanisms ha complemen o mal
egula ions. These cul u al alues b ing BUMDes managemen close o he aspi a ions o he communi y and make i mo e
accep able o esiden s, as i is in line wi h hei alue sys em. Communi y in ol emen in illage delibe a ion o ums, which a e
pa o local adi ion, s eng hens inancial anspa ency and educes he isk o und misuse. This con i ms ha local wisdom can
In eg a ion o Local Wisdom in Pa icipa o y Accoun ing Sys ems o Communi y Empowe men in Suppo ing
Sus ainable Village-Owned En e p ise De elopmen
JEFMS, Volume 08 Issue 10 Oc obe 2025 www.ije m.co.in Page 6600
be an e ec i e ins umen in main aining accoun abili y a he communi y le el (Les a i Widiah Ningsih & Lingga Yuliana, 2025;
Romdoniah & Kamela, 2024; Sulis yowa i & Na aliawa i, 2022) .
Fu he mo e, in eg a ing cul u al aspec s in o inancial managemen also con ibu es o he sus ainabili y o BUMDes. Layn's
(2024) esea ch on he Sasi cul u e in Maluku demons a es ha cus oma y ules can se e as an in e nal con ol sys em,
main aining he balance o na u al esou ce u iliza ion while suppo ing sus ainable accoun ing p ac ices. These indings show
ha local wisdom is no only ele an o main aining social ha mony bu also plays a ole in he ecological aspec s o illage
de elopmen . Meanwhile, P ase ya (2024) emphasizes ha social capi al, including us in local no ms, can s eng hen BUMDes'
pe o mance and encou age he achie emen o economic, social, and cul u al goals in a balanced manne . The e o e,
accoun abili y and anspa ency, suppo ed by local wisdom, con ibu e o mul idimensional illage de elopmen .
Digi al ans o ma ion con inues o expand he scope o anspa ency and accoun abili y based on local wisdom. Lib aeni's (2025)
esea ch shows ha he implemen a ion o a digi al-based accoun ing sys em in BUMDes can inc ease public access o inancial
in o ma ion and imp o e he quali y o epo s. Howe e , he success o his echnology's implemen a ion is g ea ly in luenced
by social accep ance, which in u n is de e mined by he sys em's compa ibili y wi h he alues and cul u al no ms o he illage.
By designing in e aces and epo ing mechanisms ha ake local wisdom in o accoun , digi iza ion becomes no only a echnical
ins umen , bu also a means o s eng hening social legi imacy. This shows ha he sus ainabili y o BUMDes is la gely de e mined
by he balance be ween mode n echnology, o mal accoun ing p inciples, and local cul u al alues ha a e ali e in he
communi y.
3. METHOD
This a icle uses a concep ual app oach combined wi h li e a u e e iew and empi ical case s udy analysis o de elop an analy ical
amewo k o he in eg a ion o local wisdom in o he pa icipa o y accoun ing sys em a BUMDes. The concep ual app oach was
chosen because he opic discussed is no only p ac ical bu also no ma i e, equi ing in-dep h heo e ical elabo a ion. Th ough
his me hod, he esea ch does no me ely desc ibe ac s bu also examines he in e ela ionships be ween concep s in he
li e a u e o p oduce a mo e comp ehensi e unde s anding (C eswell & C eswell, 2023). In he con ex o BUMDes go e nance,
his app oach is ele an because he issues o accoun abili y, pa icipa ion, and local wisdom a e mul idimensional and canno
be sol ed by quan i a i e me hods alone.
The i s s age is a li e a u e e iew, which includes examining academic jou nals, esea ch epo s, and go e nmen policy
documen s ela ed o BUMDes, pa icipa o y accoun ing, local wisdom, and sus ainable de elopmen . The li e a u e e iew is
conduc ed sys ema ically, aking in o accoun he la es indings in he 2020–2025 pe iod o ensu e he ele ance o he analysis.
This s udy iden i ies esea ch gaps, such as he lack o pa icipa o y accoun ing models ha in eg a e local cul u al alues and he
limi ed implemen a ion o digi al echnology a he illage le el (Lib aeni, 2025; Ningsih, 2025). The li e a u e app oach also se es
as a concep ual basis o linking ield obse a ions wi h heo ies o accoun abili y, anspa ency, and sus ainable de elopmen .
The second s age is case s udy analysis, which highligh s eal examples o BUMDes ha ha e been s udied in p e ious publica ions.
The case s udies selec ed include BUMDes Mu ia a Weli ang in Mojoke o and BUMDes Kaduagung Ba a , which ep esen he
p ac ices o in eg a ing local wisdom and implemen ing a digi al-based accoun ing sys em (Sa i e al., 2024; P amono e al., 2025).
The case s udy analysis was conduc ed by compa ing exis ing go e nance p ac ices wi h pa icipa o y accoun ing p inciples and
assessing he ex en o which local wisdom is in ol ed in decision-making, inancial epo ing, and social o e sigh mechanisms.
This app oach was chosen because i p o ides a conc e e empi ical pic u e o he challenges and oppo uni ies in applying he
concep s unde e iew (P ase ya, 2024) .
The hi d s age is syn hesis and no ma i e e lec ion, which is he p ocess o in eg a ing indings om li e a u e and case s udies
o de elop an ope a ional amewo k and s a egic ecommenda ions. Syn hesis is ca ied ou using a hema ic analysis app oach,
which g oups indings in o ca ego ies such as communi y empowe men , inancial accoun abili y, and he ole o local wisdom.
Nex , no ma i e e lec ion is ca ied ou o assess he sui abili y o p ac ices in he ield wi h he no ms and objec i es o
sus ainable de elopmen , including social, economic, en i onmen al, and cul u al aspec s. Th ough his e lec ion, he esea ch
p oduced ecommenda ions ha a e no only echnical bu also con ex ual and adap i e o he local cha ac e is ics o he illage
(P ase ya e al., 2023; Pu a e al., 2024; Rahmawa i e al., 2024; Yuliani e al., 2024) . Thus, he me hod used in his s udy enables
he c ea ion o a BUMDes go e nance amewo k based on local alues while aligning wi h mode n p inciples o accoun abili y
and anspa ency.
In eg a ion o Local Wisdom in Pa icipa o y Accoun ing Sys ems o Communi y Empowe men in Suppo ing
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4. RESEARCH FINDINGS AND DISCUSSION
4.1. Unique Iden i ica ion o Local Wisdom
The i s s ep in in eg a ing local wisdom in o he pa icipa o y accoun ing sys em o BUMDes is o iden i y local alues ha a e
ele an o illage go e nance. Local wisdom ha has de eloped in Indonesian illage communi ies includes delibe a ion,
coope a ion, cus oma y p ohibi ions, and ecogni ion o adi ional leade s as igu es o legi imacy. These alues a e no me ely
adi ions, bu ha e become collec i e guidelines in egula ing social ela ions and esou ce managemen . T imu ni's (2025)
esea ch con i ms ha he p ac ices o delibe a ion and coope a ion play a undamen al ole in illage go e nance, as hey e lec
he p inciples o pa icipa ion and oge he ness ha o m he basis o he applica ion o pa icipa o y accoun ing. Thus, he
iden i ica ion o local alues needs o be seen as a decisi e ini ial s ep in building an accoun abili y amewo k ha is in line wi h
he cha ac e is ics o he illage communi y.
Figu e 1: In eg a ion o Local Wisdom in he Pa icipa o y Accoun ing Sys em o BUMDes
Village delibe a ions o adi ional mee ings a e conc e e examples o delibe a i e p ac ices ha can be used as a medium o
epo ing and moni o ing BUMDes' inances. These o ums allow he communi y o exp ess hei aspi a ions, assess he
pe o mance o manage s, and gi e collec i e app o al o he use o unds. La i 's (2025) s udy in Je'ne allasa Village shows ha
anspa ency and accoun abili y inc ease when BUMDes' inancial epo s a e p esen ed h ough delibe a i e o ums ha di ec ly
in ol e esiden s. In his con ex , delibe a ion is no only a mechanism o democ a iza ion bu also a mo e e ec i e means o
social con ol because i is bound by local no ms and cul u e. This shows ha pa icipa o y accoun ing can gain s onge legi imacy
i i is oo ed in he adi ion o illage delibe a ion ha is deeply embedded in communi y li e.
Go ong oyong o communi y se ice is ano he o m o local wisdom ha is ele an o be in eg a ed in o he pa icipa o y
accoun ing sys em. Con ibu ions o labo , ime, and non-mone a y esou ces o en ha e signi ican alue in suppo ing he
sus ainabili y o BUMDes, e en hough hey a e no eco ded in o mal inancial epo s. Resea ch by Simon e al. (2023)
emphasizes ha communi y pa icipa ion based on go ong oyong con ibu es posi i ely o he achie emen o sus ainable
de elopmen goals in illages. By ecognizing hese con ibu ions as a o m o social capi al, pa icipa o y accoun ing can p o ide
a mo e comple e pic u e o he esou ces owned by BUMDes and educe he pe cep ion gap be ween adminis a o s and he
communi y ega ding he alue o ci izen pa icipa ion.
In addi ion, cus oma y no ms p ohibi ing en i onmen al damage a e also an impo an elemen in he in eg a ion o local wisdom.
Some illage communi ies ha e cus oma y ules ha p ohibi he elling o ce ain ees o egula e he use o wa e esou ces o
main ain he sus ainabili y o he ecosys em. Layn's (2024) esea ch on Sasi p ac ices in Maluku shows ha such cus oma y ules
can be posi ioned as a o m o g een accoun ing, whe e ecological dimensions a e aken in o accoun in inancial managemen
and sus ainabili y epo ing. Thus, pa icipa o y accoun ing ha alues local wisdom does no only ocus on inancial aspec s, bu
also pays a en ion o ecological esponsibili ies ha a e ele an o sus ainable illage de elopmen .
Ano he ac o ha is no less impo an is he cul u al alue ela ed o leade ship and he ole o adi ional leade s. In many
illage communi ies, he legi imacy o o mal leade ship is o en ein o ced o e en de e mined by he communi y's us in
adi ional leade s o local leade s. The s udy P ase ya e al.,(2023) shows ha social capi al in he o m o us and cul u al
In eg a ion o Local Wisdom in Pa icipa o y Accoun ing Sys ems o Communi y Empowe men in Suppo ing
Sus ainable Village-Owned En e p ise De elopmen
JEFMS, Volume 08 Issue 10 Oc obe 2025 www.ije m.co.in Page 6602
ne wo ks has a signi ican e ec on he sus ainabili y o BUMDes' pe o mance. When adi ional leade s a e in ol ed in
accoun abili y o ums, social legi imacy inc eases, and he po en ial o con lic can be minimized. The e o e, ecogni ion o he
alue o leade ship based on local cul u e is an in eg al pa o iden i ying local wisdom ha can s eng hen he e ec i eness o
pa icipa o y accoun ing sys ems in he illage con ex .
4.2. Design and Implemen a ion o a Pa icipa o y Accoun ing Sys em Based on Local Values
The ini ial design mus begin wi h legal-ins i u ional amewo ks ha explici ly inco po a e local wisdom in o illage egula ions
and BUMDes ules. Clauses equi ing delibe a ion be o e e e y s a egic inancial decision, public consul a ion obliga ions, and
open epo ing manda es a e go e nance ancho s ha ensu e meaning ul pa icipa ion and social accoun abili y. Empi ical
e idence shows ha in eg a ed go e nance, which combines pa icipa o y p inciples, anspa ency, and cul u al sensi i i y,
co ela es wi h he sus ainable pe o mance o BUMDes (Sa i e al., 2024). On he policy side, ecen deba es ha e also encou aged
e o ms o he BUMDes accoun ing sys em so ha mode n accoun abili y s anda ds do no nega e local au onomy and no ms,
bu a he inco po a e hem as legi ima e ope a ional p inciples in illage-le el egula ions. Thus, o mal egula ions become a
ga eway o no malizing cul u al p ac ices (delibe a ion/coope a ion) as pa o he accoun ing cycle.
Figu e 2: Design o a Pa icipa o y Accoun ing Sys em o Village-Owned En e p ises Based on Local Wisdom
Second, he design needs o ecognize and measu e non-mone a y con ibu ions: mu ual assis ance, local ma e ials, land access,
as social capi al in in e nal epo ing. This p ac ice cap u es economic alue ha has been in isible (in angible) in con en ional
inancial epo s, he eby educing he pe cep ion gap be ween adminis a o s and esiden s ega ding he weigh o communi y
pa icipa ion. The alua ion app oach can e e o eplacemen cos s o equi alen wo king hou s in upiah, accompanied by
na a i e no es o main ain anspa ency and a oid double claims. Field indings show ha ecognizing non-mone a y
con ibu ions os e s a sense o owne ship and social legi imacy o e BUMDes' inancial decisions (Islah, 2025; T imu ni, 2025). In
addi ion, he in eg a ion o en i onmen al cus oma y no ms—such as p ohibi ions on cu ing down ce ain ees o egula ing he
use o sp ings—can be eco ded as a g een accoun ing commi men ha in luences in es men policies and en i onmen al
es o a ion cos s (Layn, 2024).
Thi d, he o ma o inancial epo s mus be easy o unde s and and communica i e o illage s. Technically, he epo s s ill
ollow he minimum s uc u e (cash low, inancial posi ion, no es), bu a e supplemen ed wi h an execu i e summa y in he local
language, simple g aphs, and pa icipa ion ables ha explain he sou ces o unds, alloca ions, and social-en i onmen al bene i s.
Resea ch on he anspa ency o he APBDes shows ha language accessibili y and p esen a ion a ec he le el o unde s anding
and engagemen o ci izens (Ningsih, 2025). In BUMDes en i onmen s ha a e he e ogeneous in e ms o educa ion, mul imodal
epo ing ( isual, e bal in o ums, and documen s) helps con ey echnical in o ma ion o collec i e decision-making. This
s anda d is in line wi h in eg a ed go e nance ecommenda ions ha place public communica ion as a co e componen o
accoun abili y (Sa i e al., 2024).
Fou h, he design mus es ablish a egula cycle o public announcemen s and consul a ions— o example, mon hly o cash low
and qua e ly o pe o mance e alua ions— h ough illage mee ings, in o ma ion boa ds, and communi y media. The p ac ice
o open o ums has been p o en o s eng hen social con ol, educe in o ma ion asymme y, and inc ease public us in
Village Regula ion o BUMDes
based on Local Wisdom
Recogni ion o Non-Mone a y
Con ibu ion (Social Capi al)
Rou ine Public Consul a ion
(Village Delibe a ion)
Simple & Local Financial Repo
Fo ma
Digi alizing o Con ex ual
Accoun ing
In eg a ion o Local Wisdom in Pa icipa o y Accoun ing Sys ems o Communi y Empowe men in Suppo ing
Sus ainable Village-Owned En e p ise De elopmen
JEFMS, Volume 08 Issue 10 Oc obe 2025 www.ije m.co.in Page 6603
manage s. To be e ec i e, each public mee ing should include a s anda d agenda: (1) a b ie p esen a ion o inancial and
ope a ional pe o mance, (2) a discussion o non-mone a y con ibu ions and ecological and social impac s, (3) a ques ion-and-
answe session and ecommenda ions om esiden s, and (4) documen a ion o decisions. This s uc u e links accoun ing wi h
illage delibe a i e adi ions, so ha o mal s anda ds a e no di o ced om cul u al p ac ices.
Fi h, all o he abo e designs a e ein o ced by an app op ia e digi al accoun ing in o ma ion sys em, a simple in e ace, egional
language op ions, a non-mone a y con ibu ion eco ding module, and a public dashboa d ea u e o pe o mance summa ies.
An implemen a ion s udy in Wes Kaduagung shows ha digi iza ion, when accompanied by aining and men o ing, imp o es
imeliness, accu acy, and access o in o ma ion o ci izens (P amono e al., 2025). Ano he s udy con i ms ha digi al accoun ing
sys ems designed o he illage con ex ha e an impac on he quali y o epo s and acili a e in e nal audi s and ansac ion
acking (Lib aeni, 2025). To be sus ainable, he digi iza ion package is combined wi h social audi mechanisms and in e nal con ol
p ocedu es ha a e p opo ional o he capaci y o BUMDes, so ha echnological inno a ion does no lose i s oo ing in local
no ms and pa icipa o y p inciples.
Digi iza ion canno be applied gene ically wi hou conside ing he local con ex o he illage. Technology-based accoun ing
sys ems need o be designed wi h simple in e aces, using local languages o symbols ha a e easily unde s ood by he communi y,
and compa ible wi h he de ices a ailable in he illage. In addi ion, limi ed in e ne in as uc u e in u al a eas is o en a majo
obs acle. The e o e, suppo in he o m o aining and ongoing assis ance is c ucial o ensu e e ec i e echnology adop ion. A
s udy by Sa i e al. (2024) on in eg a ed BUMDes go e nance emphasizes ha human esou ce capaci y is an impo an
p e equisi e o he success ul implemen a ion o digi al sys ems, in addi ion o echnical ac o s such as in e ne ne wo ks.
Fu he mo e, he use o digi al echnology can also se e as a means o building b oade public pa icipa ion. Digi al accoun ing
sys ems enable he p o ision o public dashboa ds ha display inancial epo summa ies, communi y con ibu ions, and he
social and ecological impac s o BUMDes p og ams. Thus, digi iza ion no only imp o es echnical e iciency bu also se es as an
ins umen o social accoun abili y. Recen s udies highligh ha he in eg a ion o in o ma ion echnology in illage epo ing
s eng hens public legi imacy and inc eases ci izens' us in manage s (Ningsih, 2025; Public Money & Managemen , 2025).
The e o e, con ex ual digi aliza ion— ha is, digi aliza ion ha is sensi i e o local esou ce cons ain s while being open o
communi y aspi a ions—is key o ensu ing he sus ainabili y o BUMDes.
4.3. Impac on Communi y Empowe men and Sus ainable De elopmen
The in eg a ion o local wisdom in o pa icipa o y accoun ing in BUMDes has been p o en o inc ease he capaci y o communi ies
in illage inancial managemen . Th ough adi ional aining on illage delibe a ions and he use o local languages in he
p epa a ion o inancial epo s, illage s ha e gained a be e unde s anding o he budge ing p ocess, expendi u es, and inancial
o e sigh . As a esul , hey a e no longe me ely ecipien s o in o ma ion bu a e ac i ely in ol ed in analysis and decision-making
(Ningsih, 2025). Fo example, esea ch on APBDes managemen in Sowanlo Village, Jepa a, shows ha when inancial epo s a e
w i en in easy- o-unde s and language and announced publicly, he communi y unde s ands how illage unds a e used (Ningsih,
2025).
The second impac is he s eng hening o a sense o owne ship o BUMDes' businesses and illage esou ces. Communi y
con ibu ions h ough mu ual assis ance, use o local esou ces, and pa icipa ion in inancial decision-making o ums make
esiden s eel ha he illage business is "sha ed p ope y." This educes eelings o aliena ion om adminis a o s and inc eases
esiden s' mo i a ion o main ain and suppo BUMDes p og ams. The s udy "De elopmen o BUMDes based on local po en ial
as a d i e o he illage economy" ound ha illages whose communi ies con ibu e non-mone a y esou ces epo highe
in ol emen in he managemen o BUMDes businesses.
Thi d, his in eg a ion helps educe he gap be ween adminis a o s and illage s and inc eases he legi imacy o he
adminis a o s. When accoun abili y and anspa ency a e implemen ed, esiden s eel ha he decisions made and inancial
epo s a e no jus o mali ies, bu e lec he collec i e will. Resea ch a BUMDes Mi a Ka ya Sejah e a, Sou h Toapaya, Bin an
Regency, s a es ha illage s conside adminis a o s o be mo e us wo hy when he und managemen p ocess is ca ied ou
openly and in ol es he communi y (Romdoniah & Kamela, 2024). This legi imacy is impo an o he sus ainabili y o social
suppo and he long- e m iabili y o illage en e p ises.
The in eg a ion o a pa icipa o y accoun ing sys em ha alues local alues p oduces clea and accessible inancial epo s, which
in u n inc eases public us in BUMDes adminis a o s. The s udy "T anspa ency and Accoun abili y in he Managemen o he
2024 Village Budge (APBDes) in Sowanlo Village, Jepa a" shows ha despi e e o s o imp o e anspa ency, he e a e s ill
obs acles in e ms o accessibili y and unde s anding o inancial epo s by he communi y (Ningsih, 2025). Howe e , illages ha
In eg a ion o Local Wisdom in Pa icipa o y Accoun ing Sys ems o Communi y Empowe men in Suppo ing
Sus ainable Village-Owned En e p ise De elopmen
JEFMS, Volume 08 Issue 10 Oc obe 2025 www.ije m.co.in Page 6604
ha e success ully p esen ed epo s egula ly and in he local language epo an inc ease in public us in esiden pa icipa ion
su eys.
Social o e sigh h ough adi ional leade s and illage delibe a i e o ums is an e ec i e ins umen o p e en ing he misuse o
unds. T adi ional leade s who a e espec ed by he communi y can se e as in o mal audi o s who examine he compliance o
decision implemen a ion wi h cus oma y no ms, especially in e ms o he use o na u al esou ces and he en i onmen . In a
s udy in Bin an, Romdoniah & Kamela (2024) epo ed ha esiden s ely on adi ional leade s as igu es who p o ide cla i ica ion
when ques ions o ambigui ies a ise om he inancial epo s o adminis a o s. These dialogue o ums add a laye o social
con ol beyond he o mal mechanisms o he illage go e nmen .
An in eg a ed o mal and in o mal accoun abili y sys em s eng hens he o e all go e nance o BUMDes. Fo mal accoun abili y
o he illage go e nmen is ealized h ough pe iodic epo s and o icial audi s, while in o mal accoun abili y o esiden s and
adi ional leade s is ca ied ou h ough delibe a ions and public dialogues. The S udy o Accoun abili y and T anspa ency Analysis
o BUMDes Mi a Ka ya Sejah e a Managemen in Sou h Toapaya emphasizes ha he combina ion o o mal and in o mal
accoun abili y imp o es he in eg i y o illage inancial managemen (Romdoniah & Kamela, 2024). Finally, when bo h sys ems
a e consis en ly implemen ed, accoun abili y and anspa ency a e no jus slogans, bu become eal p ac ices ha a e belie ed
by he communi y.
F om an economic pe spec i e, BUMDes managed using pa icipa o y accoun ing p inciples and local wisdom show po en ial o
mo e s able income and expansion o business uni s. Fo example, he s udy "T ans o ming Ru al Economy Th ough Communi y-
Based Tou ism wi h Village-Owned En e p ise BUMDes ..." shows ha he de elopmen o po en ial illage businesses (such as
communi y-based ou ism) can inc ease household income and he economic esilience o illage amilies. This economic
sus ainabili y is also closely ela ed o business di e si ica ion, so ha BUMDes a e no o e ly dependen on a single sou ce o
income.
Socially, he in eg a ion o local wisdom s eng hens solida i y, oge he ness, and social ne wo ks in illages. The alues o
coope a ion and illage delibe a ion encou age esiden s o help and suppo each o he in illage en e p ises and social ac i i ies.
Resea ch on "Was e managemen in he p oduc ion p ocess o BUMDes" in Bo obudu shows ha join en i onmen al ac i i ies
inc ease social awa eness and s eng hen ne wo ks be ween esiden s, as well as imp o e he social image o BUMDes (Da madi,
2025). Thus, social sus ainabili y is no only a ma e o pa icipa ion in economic ac i i ies, bu also in ol emen in he no ms and
adi ions o illage daily li e.
The en i onmen al and cul u al impac s a e also signi ican : local wisdom o en con ains cus oma y ules ha limi en i onmen al
exploi a ion, p o ec na u al esou ces, and p ese e he sus ainabili y o illage ecosys ems. In addi ion, he p ese a ion o local
no ms, i uals, and adi ions h ough ecogni ion in he o mal accoun ing sys em also helps o main ain cul u al iden i y. BUMDes
ha implemen was e managemen and en i onmen al conse a ion p ac ices inc ease en i onmen al awa eness and p o ide
economic and social bene i s (Susan i, 2025) . Local cul u e ha is ecognized in illage egula ions and inancial epo s
s eng hens he sense o p ide and cul u al sus ainabili y o he illage.
5. CONCLUSION AND PRACTICAL IMPLICATIONS
This s udy con i ms ha in eg a ing local wisdom in o pa icipa o y accoun ing sys ems con ibu es signi ican ly o s eng hening
he go e nance o Village-Owned En e p ises (BUMDes). Cul u al alues such as delibe a ion, coope a ion, cus oma y ules ela ed
o he p ese a ion o he en i onmen , and he ole o adi ional leade s no only se e as a legacy o adi ion bu also as
e ec i e ins umen s in s eng hening accoun abili y, anspa ency, and social legi imacy. By adop ing his app oach, inancial
epo s and accoun abili y mechanisms do no s op a adminis a i e aspec s alone, bu a e p esen as social p ac ices ha can
build a sense o us and collec i e solida i y among illage communi ies. Local alue-based pa icipa o y accoun ing is he e o e
no only a echnical s a egy, bu also an ins i u ional s a egy ha connec s economic, social, cul u al, and en i onmen al aspec s
in a balanced manne o he long- e m sus ainabili y o BUMDes.
In addi ion, his in eg a ion has had a angible impac on he empowe men o u al communi ies. Residen s a e no longe
posi ioned as passi e ecipien s o in o ma ion o bene i s, bu a e ac i ely in ol ed in planning, budge ing, moni o ing, and
e alua ing he use o BUMDes unds. This in ol emen s eng hens he collec i e sense o owne ship o illage en e p ises and
managed esou ces, inc eases he legi imacy o manage s, and mo i a es esiden s o suppo he sus ainabili y o illage
p og ams. Fu he mo e, an accoun ing sys em ha ecognizes non-mone a y con ibu ions such as mu ual assis ance and local
esou ces adds meaning o communi y pa icipa ion, he eby educing he pe cep ion gap be ween adminis a o s and he
communi y. Thus, pa icipa o y accoun ing oo ed in local wisdom can encou age he g ow h o inclusi e, ai , and esilien illage
go e nance.
