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Poverty has decreased in Indonesia since two decades which align with SDGs’ goal. However, poverty still concentrated in rural area beacuse of low income generating then they tend to find better life in urban areas. Beside, Indonesia try to develop rural community with Village Owned Enterprise (VEs) and Village Funds. This paper aims to examine, to describe then to compare the significant factors that influence about between VEs policy implementation in Indonesia, and Township and Village Enterprise (TVEs) in China since 1970s with country social analysis (CSA) approach. We use desk research by gathering previous studies, popular article which explain this topic. Further, this paper found that there are several distinctions between TVEs in China and EV in Indonesia in implementation. Although this different social structure and economic environment, Indonesia Government can take several lessons to improve VEs policy in order to provide social transformation in rural area.

Fostering Development through Village Owned Enterprise (VEs) in Rural Area: A Comparative Study between Indonesia and China