Abstract

The development of the people's economy in Bali cannot be separated from the role of traditional villages as socio-cultural institutions that possess economic potential based on local wisdom. One of the institutional innovations of traditional economics developed is the Baga Utsaha Padruwen Desa Adat (BUPDA), a village-owned enterprise that aims to manage local assets and economic potential for the welfare of the village community. This study aims to examine strategies for strengthening BUPDA through the implementation of professional management and the integration of Balinese local wisdom values. The research method used is empirical legal research, with a normative-empirical approach to the laws and regulations and customary law applicable in Balinese society. The results show that the existence of BUPDA has a strategic role in strengthening the traditional economy, but still faces challenges such as a weak internal legal basis (BUPDA pararem), low human resource capacity, and a lack of professional governance. The implementation of professional management based on the principles of transparency, accountability, and effectiveness is a key factor in strengthening BUPDA institutions. Furthermore, the integration of the values of Tri Hita Karana, Tat Twam Asi, Nyama Braya, and Tri Kaya Parisudha serves as the moral and spiritual foundation for BUPDA management, ensuring its continued rootedness in Balinese culture. Therefore, strengthening BUPDA through professional management and local wisdom is expected to achieve sustainable, competitive, and independent traditional village economies while maintaining Balinese social and cultural harmony.

References

Beisenova, Raikhan, Symbat Tulegenova, Rumiya Tazitdinova, Ainur Orkeyova and Zhazira Beisenkenova, ‘The Problem of Water Resources Pollution with Active Pharmaceutical Substances and the Possibility of Its Solving’, Journal of Environmental Management and Tourism, 13 (2022), 1353 <https://doi.org/10.14505/jemt.v13.5(61).12>

Dewa Gede Edi Praditha and I Made Bagus Wibisana, ‘Local Wisdom Law: Traditions, Values, and Transformation in the Context of Cultural Heritage Ownership’, Yusthima Journal, 4 (2024), 207–14 <https://doi.org/10.36733/yusthima.v4i1.8940>

Dewi, Ni Komang Urip Krisna and Putu Rany Wedasuari, ‘Reflection of Tat Twam Asi in Social Responsibility at the Village Credit Institution (LPD) of Nyuhkuning Traditional Village’, Global Education Scientific Journal, 4 (2023), 1669–75 <https://doi.org/10.55681/jige.v4i3.1168>

Dewi, Ni Wayan Sri Waras Danu, Natasya Oktavia Mangadang, Kadek Edi Saputra, Gusti Ayu Made Suartika and I Gusti Agung Ayu Rai Asmiywati, ‘Identification of Tri Hita Karana Aspect in Taro Village’, Journal of A Sustainable Global South, 8 (2024), 8 <https://doi.org/10.24843/jsgs.2024.v08.i01.p02>

Hardi, Rushel, Helfina Meisarah, Davania Anazra and Fitri Hayati, ‘The Impact of Digitalization and E-Commerce on the Development of MSMEs in Indonesia’, International Journal Of Education, Social Studies, And Management (IJESSM), 6 (2026), 45–55 <https://doi.org/10.52121/ijessm.v6i1.980>

Hasmawati, Fifi, ‘People’s Economy Based on Local Potential’, Journal of Community Empowerment, 6 (2018), 12 <https://doi.org/10.37064/jpm.v6i1.4986>

Helmi, Helmi, Dony Yusra Pebrianto, Hafrida Hafrida, Retno Kusniati and Beny Saputra, ‘Local Wisdom in Indonesia: Assessing Its Legal Status and Role in Forest Protection’, Jambe Law Journal, 6 (2023), 125–41 <https://doi.org/10.22437/jlj.6.2.125-141>

I Wayan Gede, Wisnu, Purnami Ida Ayu Putu and Sari Ni Putu Diana, ‘Constructivism of Awig-Awig in Maintaining the Authenticity of Tista Traditional Village, Sukasada District, Buleleng Regency’, Humaniora, 15 (2025), 167–74 <https://doi.org/10.21512/humaniora.v15i2.12328>

Kamakaula, Yohanes, ‘Local Wisdom in Customary Law as an Instrument for Environmental Protection’, Journal of Adat Recht, 2 (2025), 30–36 <https://doi.org/10.62872/80xzgr29>

Komariah, Neneng, Encang Saepudin and Saleha Rodiah, ‘Development of Tourist Village Based on Local Wisdom’, Journal of Environmental Management and Tourism, 9 (2019), 1172 <https://doi.org/10.14505//jemt.v9.6(30).05>

Made Suarminiati, Ni and I Nyoman Subanda, ‘Local Wisdom for Bali’s Sustainable Economy’, JPPUMA: JJournal of Governance and Political Social UMA, 13 (2025), 255–65 <https://doi.org/10.31289/jppuma.v13i2.15829>

Marsudi, Kenlies Era Rosalina and Verbena Ayuningsih Purbasari, ‘Implementation of the Pancasila Economic System in Indonesian Government Policy’, Indonesian Journal of Islamic Economics and Finance, 2 (2022), 27–42 <https://doi.org/10.37680/ijief.v2i1.1584>

Ni Luh Gede Mita Sundari and A. A. Gede Putra Pemayun, ‘The Existence of Traditional Villages in Economic Independence Following Bali Regional Regulation Number 4 of 2019 Concerning Traditional Villages in Bali’, Journal of Research and Development of Science and Humanities, 8 (2024), 17–28 <https://doi.org/10.23887/jppsh.v8i1.78899>

Purnamawati, I Gusti Ayu, ‘Sustainable Tourism Development Through Improving the Role of Customary Village’, International Journal of Social Science and Business, 5 (2021) <https://doi.org/10.23887/ijssb.v5i1.30778>

Purnamawati, I Gusti Ayu, Gede Adi Yuniarta and Ni Komang Surya Wahyuni, ‘The Role Analysis of the Physical Environment, Socio-Economic, and the Urgency of Tat Tvam Asi in Collective Resource Management Multicultural Subak’, Asia Pacific Management and Business Application, 011 (2022), 19–36 <https://doi.org/10.21776/ub.apmba.2022.011.01.2>

Qodim, Husnul, ‘Nature Harmony and Local Wisdom: Exploring Tri Hita Karana and Traditional Ecological Knowledge of the Bali Aga Community in Environmental Protection’, Religious: Jurnal Studi Agama-Agama Dan Lintas Budaya, 7 (2023), 1–10 <https://doi.org/10.15575/rjsalb.v7i1.24250>

Rinawati, Anita, ‘Pancasila and the Existence of a People’s Economy in Facing Global Capitalism’, Floating Journal: Social Sciences, 2 (2020) <https://doi.org/10.31602/jt.v2i2.3972>

Rwa Jayantiari, I Gusti Agung Mas, I Gst Pt Bagus Suka Arjawa, Leonito Rebeiro and Joanne Audrey Paquita, ‘Forming Legal Culture in Customary Forest Management: Local Wisdom Approach of Customary Law Communities’, Udayana Journal of Law and Culture, 8 (2024), 67 <https://doi.org/10.24843/UJLC.2024.v08.i01.p04>

Salvioni, Cristina, Roberto Henke and Francesco Vanni, ‘The Impact of Non-Agricultural Diversification on Financial Performance: Evidence from Family Farms in Italy’, Sustainability, 12 (2020), 486 <https://doi.org/10.3390/su12020486>

Senastri, Ni Made Jaya, ‘The Principles of Tri Hita Karana in Harmonizing Rural Spatial Planning Local Wisdom Based (Study in Bugbug Traditional Village, Karangasem)’, Prasada Law Journal, 10 (2023), 20–27 <https://doi.org/10.22225/jhp.10.1.2022.20-27>

Styaningrum, Farida, ‘The Concept of a People’s Economic System in Empowering Indonesian MSMEs’, E-Journal of Economics and Business, Udayana University, 2021, 565 <https://doi.org/10.24843/EEB.2021.v10.i08.p01>

Subrata, Kadek Diana Agustini Putri, Ni Nyoman Triyuni and Elvira Septevany, ‘Sustainable Tourism through the Tri Hita Karana Concept’, ASEAN Journal on Hospitality and Tourism, 23 (2025), 66–78 <https://doi.org/10.5614/ajht.2025.23.1.05>

Sudiana, A Kt, ‘Pengaturan Integrasi Kearifan Lokal Dalam Penataan Lingkungan Di Provinsi Bali’, 2021 <https://doi.org/10.36733/jhshs.v2i2>

Susanti, Evi, Rita Yuni Mulyanti and Lela Nurlaela Wati, ‘MSMEs Performance and Competitive Advantage: Evidence from Women’s MSMEs in Indonesia’, Cogent Business & Management, 10 (2023) <https://doi.org/10.1080/23311975.2023.2239423>

TM Kusuma and NW Deriani, ‘Tri Hita Karana In The Principles Of Green Economy To Enhance The Competitiveness Of Msmes’, Vidyottama Sanatana: International Journal of Hindu Science and Religious Studies, 9 (2025), 105–14 <https://doi.org/10.25078/vidyottama.v9i1.4403>

Undang-Undang Republik Indonesia Nomor 20 Tahun 2008 Tentang Usaha Mikro, Kecil, Dan Menengah, Lembaran Negara Republik Indonesia Tahun 2008 Nomor 93 (Jakarta: Pemerintah Republik Indonesia, 2008)