Act No.of 2014 concerning Village Government contains regulations concerning village decentralization to conduct a village’s development in accordance with its respective potential. Based on these regulations, each village has a great role in achieving village development goals. Therefore, the establishment of BUM Desa (Village-owned Enterprises) is the right action to build a tradition of democracy in the village to achieve a higher economic degree of village communities in achieving prosperity. The objective of this study is how the public sector, especially the BUM Desa of the Tirta Mandiri, Ponggok Village, runs its institutions more competitive, effective, and efficient through the ten principles of Reinventing Government. This study used an exploratory qualitative approach. The data collection wasobtained from several informants, including the Finance Chief, Secretary and Person in charge of BUM Desa of Tirta Mandiri, and the Ponggok Village Community. The data collection techniques were conducted by interviews, observation, and literature review. In this study, adescriptive methodwas used as the data analysis method. Then, the collected data was analyzed using the interactive analysis method of Miles and Huberman, consisting of four stages. Based on the results of this study, it was revealedthat the ten principles initiated by Osborne and Gaebler underlie the success in the management of BUM Desa of Tirta Mandiri in Ponggok Village, Klaten, Central Java.