AMO DEVELOPMENT STRATEGY IN IMPROVING THE PERFORMANCE OF BUMD IN EAST JAVA PROVINCE

Abstract

Increasing the contribution of Regional-Owned Enterprises (BUMD) in East Java is very
necessary; this is because to increase regional income from the elements of regional wealth
management, which is separated by the government, must be transparent and accountable—
based on good corporate governance. Expectations regarding the increase in the contribution
of BUMDs in East Java to increase regional income from the separated elements of regional
wealth management can be explained that BUMD has an essential role for the economy in
East Java, especially concerning the contribution of Regional Original Income to the East
Java Provincial Government. The purpose of this study is to understand and reveal ways of
developing BUMD performance and improving the performance of BUMD employees in
East Java in facing global challenges and the era of disruption by using the perspective of the
AMO theory (Ability, Motivation, Opportunity). The results showed that the ability of
BUMD employees to improve employee performance. BUMD employees have done this
motivation in enhancing employee performance, opportunities owned by BUMD in
enhancing employee performance. Seeing AMO's development in BUMD employees,
BUMD's performance will increase with the AMO development system model for
employees. The BUMD also conducts the periodic evaluation of financial performance,
Diagnostic Good Corporate Governance (GCG), and evaluates the Company's Work Plan and
Budget.