LAW, CONTESTED SPACE AND THE POLITICAL ECONOMY OF VILLAGE-OWNED STATE ENTERPRISES INSTITUTIONALISM IN INDONESIA

Village-Owned State Enterprises is a vital institution to create a dialogue in the village as a reflection of sovereignty from the village community to their economic development. In the ideal management, to increase participation and create economic sovereignty of the Village-Owned State Enterprises, it should be freed from the intervention of local elite capture. The institutionalism process of village-level economic institutions through Village-Owned State Enterprises is a form of creating a local democratic economy in the village. This institutional reform is made to create a market-friendly institution within society that will create institutional structures which provide a more secure environment to community participation in society to evolve and improve capacity and capability as a reflection of the democratic economy. This paper will address 3 things to analyze: 1)Analyze the nature of the prismatic community in Indonesia in responding to the policy from the government regarding the making of Village-Owned State Enterprises 2) Examines the way in which political factors have shaped the process of Village-Owned State Enterprises in Indonesia 3) Presents the conclusion to the chapter. This research is kind of a qualitative method. The research sampling that is used is purposive sampling with the informants. While the data analysis method used is descriptive.