Aligning Village Enterprise Governance with Maqasid al-Shariah: An Appraisal of BUMG Management for Social Welfare in Aceh Besar

Abstract

Village-Owned Enterprises (BUMG) are a strategic instrument for promoting village economic self-reliance by optimising local potential and empowering communities. This study aims to analyse the BUMG management system and examine it from the perspective of Islamic economic law in the village of Lampanah Baro, Indrapuri Sub-district, Aceh Besar Regency. This study employs a qualitative, normative-empirical approach, drawing on a literature review and analysis of BUMG management practices. The findings indicate that the presence of BUMG in Gampong Lampanah Baro has made a positive contribution to improving community welfare, particularly through job creation, increased income, and the development of businesses based on local potential. However, various challenges remain in its implementation, including limited human resource capacity, sub-optimal business management systems, and low levels of transparency and accountability in financial management. Furthermore, the application of Islamic economic principles has not yet been fully optimised, particularly in the use of business contracts, which remain largely conventional, and in the absence of a structured Islamic oversight system. From the perspective of Islamic economic law, these conditions indicate a gap between normative concepts and empirical practice, particularly with respect to the principles of justice (al-‘adl), trustworthiness (amanah), and public interest (maslahah). Therefore, there is a need to strengthen the sharia-based governance of BUMG through capacity building for managers, the application of appropriate sharia contracts, and the establishment of a sharia oversight mechanism to achieve sustainable community welfare.