The emergence of rural community owned enterprises khown as BUMDes has been in line with evolution of public administration pradigm, from OPA to NPM who implemented in local government. Local potency development becomes a substantial aspect to improving local competitiveness. Hence, BUMDes formation is one of the models financial capacity to develop local potency in rural level. The aim is comparing traditional and public enterprise based management in local potency management. The results show that there is a fundamental difference in the management of local potency in rural level. Consequently, We argue that has been on the right track, the evolution of the government business model to the public enterprise for the management of local potency in rural level. Evolution of BUMDes is from a bureaucratic to the business sector model, but as a social business not profit maximizing businesses.
