The role of a Geuchik ( village headman) in managing the Village-Owned Enterprises (BUMG) had not influenced the welfare of the community in Tibang Village. This was based on statistical data from Aceh Province which recorded that 60% of the population of Tiabng Village had lived below the poverty rate. This study aimed to determine the policies made by the village headman in managing BUMG in Tibang Village, Syiah Kuala Sub-district, as well as the role of the BUMG in improving and developing the economy of the community in the village. The theory used in this research is the theory of piblic policy implmentation. A descriptive – qualitative method was employed in the research. The results showed that the village headman’s policies in managing BUMG in Tibang village included the making of reusam or Village regulations regarding BUMG management and the arrangement of the Articles of Association and Bylaws related to BUMG. There was no specific policy made by village headman of Tibang village in managing BUMG. Furthermore, BUMG had not significantly influenced the improvement and develpment of the economy, and had only become a busuness that provided incoe village. The policies made by the govermant, in this case the village headman, in managing BUMG had not made any improvement in the economy of the Tibang village community. The conclusion of this study is that in Tibang, the village headman or Geuchik has not made specific policies related to productive BUMG management so that is has not improved the local community’s economy. Hence, it is recommended that the central goverment provide socilaization to all village heads to manage the potential of their villages in order to realize village independence. The village goverment is also expected to be more serious in managing the potential of the village through the village-Owned Enterprises ( BUMG).
Keywords: Goverment, village-Owned Enterprises (BUMG), geuchik’s role