Redefining Institutional Boundaries Among Public and Private-Owned Businesses

Abstract

This study investigates the institutional friction between Indonesia’s Village-Owned Enterprises (BUMDes) and private businesses, focusing on distributive justice. Institutional boundary and public value theories were employed to explore 29 interviews across 16 villages in Mamuju and Majene. The analysis reveals that while Law No. 3 of 2024 increases fiscal autonomy, it also heightens unfair competition and accountability gaps. These "boundary ambiguities" create power asymmetries that marginalize private entities. The findings suggest that achieving equity requires professionalized management and deliberative forums to resolve resource conflicts, ultimately reframing these institutional overlaps as critical issues of social and economic justice