Build the village economy: A systematic review on academic publication of Indonesian village-owned

The Village-Owned Enterprises (VOE) are established with the capital provided by the central government of Indonesia, managed by the village government in collaboration with the self-reliant rural community in terms of the economy, but not optimal in operation. On the other hand, in the fourth quarter of 2022 the Indonesian economy is growing, with more than half growing in Java, while poverty is increasing in rural Indonesia. Throughout 2022 VOEs have not been operating at their maximum potential. These issues should have been addressed with the establishment of VOEs. The aim of this research is providing a formula for the village government to develop the rural economy through the presence of VOEs. The research methodology follows the Preferred Reporting Items for Systematic Review and Meta-Analyses (PRISMA) guidelines. The materials used in this paper were collected online from existing publications. This paper presents a systematic literature review (SLR) of VOEs, classifying the literature into three system-based themes: antecedents, processes, and consequences. The research findings indicate that VOEs have limited operations in rural areas due to financial constraints and local leadership issues. Consequently, BUMDes operations damage the rural environment for the sake of economic improvement activities. The aim of this research is providing a formula for the village government to develop the rural economy through the presence of VOEs. The recommendation is to introduce further research that can expand the boundaries in developing environmentally sustainable VOEs in the future, without destroying the natural environment for the sake of improving the rural economy.