Citation:

Desi Susilawati, Tri Utami, Annisa Nur Aini. "Reviewing the Contribution and Effectiveness of Receiving Profit of Regional Owned Business Entities (BUMD) to Regional Original Income in Kebumen Regency" International Research Journal of Economics and Management Studies, Vol. 3, No. 7, pp. 8-18, 2024.

Abstract:

The purpose of this study was to determine the level of contribution and effectiveness of profit regional-owned Business entities to Regional Original Income in Kebumen District in the year 2016- 2020. The objects used in this study were 3 regional owned Business entities of Kebumen, namely PD BPR Bank Kebumen, PD Apotek Lukulo Kebumen, and PDAM Tirta Bumi Sentosa. This research is quantitative and descriptive. This study uses primer data and secondary data. The data were obtained by using documentation techniques, interviews and literature study, and the data were analyzed by contribution and effectiveness analysis. The results showed that (1) PDAM Tirta Bumi Sentosa has an average value of 0.718%, then PD BPR Bank Kebumen with an average value of 0.563% And PD Apotek Lukulo Kebumen gave the lowest contribution with an average value of 0.058% and all of them included in the very poor category. This occurred due to an increase in the cost of allowance for productive assets as a result of credits with bad collectibility and affected by the condition effects of the Covid pandemic. 19, which caused most of the debtors to have difficulty in paying credit installments (2) that regionally owned business entities which had the highest average of effectiveness were PDAM Tirta Bumi Sentosa with an average value of 110,41% and very effective. Then PD BPR Bank Kebumen has 92.01% in the effective category. Moreover, PD Apotek Lukulo Kebumen, which has the lowest effectiveness value, is 90.80% and is included in the effective category as well. The solutions to improve contribution are internal management making decisions to be adaptive according to needs, responding wisely to external threats by paying attention to improving the quality of products and services, upskilling employees, and focusing on developing businesses to maintain the sustainability of BUMD’s business.

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Keywords:

Regional owned Business Entitas, Effectiveness, Contribution, Regional Original Income.