Krantil Hamlet, precisely located in Karangrejo Village, Kromengan District, is one of the villages in Malang Regency. This village has become a center for traditional herbal medicine in the South Malang area because it has the potential for the long-established and well-known Jamu Gendong UMKM. However, the reality is that the people of Karangrejo Village still have obstacles in utilizing and developing the existing potential to the fullest. This is because the availability of raw materials is limited so that people buy raw materials outside the village, this is indicated by the absence of special land for plants for herbal raw materials. In addition, UMKM herbal products do not have a brand or certification from BPOM as well as marketing that is less extensive and has not been coordinated. Not only that, public interest, especially young people, to join in UMKM is still low. So in this case strengthening the role and innovation of BUMDES is needed. BUMDES is expected to create innovation, develop and manage UMKM appropriately and collaborate with the community as well as with the government, companies and academics.

Keyword: Innovation, UMKM, BUMDES