This study examines the application of Community Governance as an alternative governance model for Village-Owned Enterprises (BUMDes), better suited to their characteristics as social enterprises. A literature review approach was used to address weaknesses in Good Corporate Governance (GCG) practices, which are considered ineffective when applied to BUMDes due to limited organizational structure and capacity. The study's findings indicate that active participation by the community and village government is key to sustainable governance. Within the Community Governance framework, the community serves not only as beneficiaries but also as investors, supervisors, and decision-makers through village deliberation forums. The village government plays a strategic role in guidance and supervision, while the management is responsible for financial transparency and business performance. However, the implementation of this model faces challenges such as low human resource capacity, the dominance of village heads, and a weak understanding of participatory governance principles. Therefore, it is recommended to formulate contextual community-based governance indicators and provide ongoing education to all stakeholders. The implications of this research provide a conceptual contribution to designing more adaptive internal and external controls for BUMDes, simultaneously supporting the village's social and economic functions. The Community Governance model is believed to be capable of creating BUMDes governance that is more transparent, accountable, and based on cross-stakeholder collaboration