This study aims to describe and analyze the use of village funds in poverty alleviation and the factors that influence the use of village funds sourced from the State Budget for poverty alleviation. The research used the case study method. The results showed that the utilization of village fund had been implemented in accordance with the Regent Regulation No. 6 of 2019 concerning technical instructions and procedures for the distribution and determination of details of village fund given to 142 villages in 13 sub-districts, allocated equally and fairly based on the basic allocation, affirmation allocation, and formula allocation calculated by taking into account the number of villagers, the village poverty rate, the area of the village and the level of geographical difficulty. In terms of utilization of village fund through a mechanism agreed upon in the village deliberations as the highest village forum involving village government officials, the Village Consultative Body, and elements of the village community, the use, and utilization of village fund which increase every year are more prioritized in Physical Village development (95.28%) of the total village fund, compared to the use of village fund for community development and empowerment activities (4.72%) for poverty reduction, and the use of village fund has not significantly reduced poverty rates in rural areas. Factors that influence the use of village funds are (1) conflicting regulations on the use of village funds, (2) weak supervision from both government officials and the community, (3) the low commitment of village elites in utilizing village funds to reduce poverty rates in rural areas.
Village Fund, Poverty Alleviation, Village Autonomy.
We would like to thank Reviewers for taking the time and effort necessary to review the manuscript. We sincerely appreciate all valuable comments and suggestions, which helped us to improve the quality of the manuscript.
No funding was received to assist with the preparation of this manuscript.
The authors have no conflicts of interest to declare that are relevant to the content of this article.
No data available for above study.
All authors have equal contribution in the paper and all authors have read and agreed to the published version of the manuscript.
Open Access This article is licensed under a Creative Commons Attribution NoDerivs is a more restrictive license. It allows you to redistribute the material commercially or non-commercially but the user cannot make any changes whatsoever to the original, i.e. no derivatives of the original work. To view a copy of this license, visit https://creativecommons.org/licenses/by-nc-nd/4.0/
Rene Iwo Pearce, “Analysis of the Village Fund Utilization for Poverty Alleviation”, Journal of Enterprise and Business Intelligence, vol.1, no.1, pp. 027-033, January 2021. doi: 10.53759/5181/JEBI202101004.
© Rene Iwo Pearce. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
