Improving Village-Owned Enterprise Governance Through Financial Digitalization in Malang Regency

Ferry Prasetyia; Girindra Mega Paksi; Mohammad Erfan Arif; Tutut Herawan; Firdaus Finuliyah

doi:10.51454/anoa.v5i01.1723

Authors

Ferry Prasetyia Universitas Brawijaya
Girindra Mega Paksi Universitas Brawijaya
Mohammad Erfan Arif Universitas Brawijaya
Tutut Herawan Universiti Malaya
Firdaus Finuliyah Universitas Brawijaya

DOI:

https://doi.org/10.51454/anoa.v5i01.1723

Keywords:

Village-Owned Enterprise, Digitalizing, Village Finance, Good Governance, Information System

Abstract

An accountable and efficient system of village financial management is a fundamental pillar in realizing good governance at the village level. However, significant challenges persist in the implementation of such financial management systems, primarily due to limitations in human resource capacity, information technology infrastructure, and institutional governance within villages. These issues are not confined to village administrative apparatus alone, but also extend to community-level institutions such as village-owned enterprises in Malang Regency. To date, there has been no systematic and sustainable intervention that integrates digital innovation with a community-based institutional empowerment approach. This underscores the urgent need to develop a village financial information system that is not merely digital in nature, but also user-friendly, adaptable to local capacities, and aligned with the principles of good governance. This community engagement program is designed to enhance the governance capacity of village-owned enterprise financial management through the application of such an information system. Specifically, this initiative aims to: (a) develop a prototype of a village financial information system integrated with good governance principles; (b) improve the digital and financial literacy of managers of village-owned enterprises through targeted training and assistance; and (c) strengthen village institutional capacity to manage financial information in a transparent and sustainable manner. The community engagement program concludes that strengthening the financial governance of village-owned enterprises requires an integrated approach that combines digital innovation, community participation, capacity building, and institutional support.

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