District administrations allowed to establish village company

Mangupura, Bali (ANTARA News) – The government allows district administrations to establish company owned by villages that could increase their income.

Head of the Rural Community Empowerment and Rural Administration of the district of Badung Putu Gede Sridana said the establishment of village companies is regulated in the regulation of the Minister for Villages, Development of Backward Areas and Transmigration No. 4 of 2015.

“The regulation opens an opportunity to establish village companies,” he said, adding, apart from increasing the income of villages the companies are expected to boost the growth of small enterprises in rural areas.

He said the type of business of the company depends on the potentials of the village areas.

He cited a village could establish a company produce bottled drinking water if its has potential clean and drinking water resources.

“In principle, the companies are to utilize the potentials every village has to contribute to the income of the village,” he said.

He said the government would be ready to provide training in the management of the companies.

“We will encourage that every village has a village company to be run by trained people,” he said , adding the government would provide financial aid if the business is potential.

Rural Aid Fund from the government could be used for the operation of village companies, he said.

He said 17 of 46 villages in the district of Badung already have village companies in 2016, he said, adding the rest are expected to follow in 2017.

Source: Antara News