Vol. 2 No. 2 (2025): International Conference on Advanced Multidisiplinary Studies (IConAIS 2024)
Articles

Effectiveness of Village Fund Fiscal Policy on Village Independence in Indonesia

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  • Ali Abdul Wakhid,
  • Anas Malik,
  • Moh Mukri,
  • Irfan Nuruddin
Ali Abdul Wakhid
Raden Intan State Islamic University of Lampung, Indonesia
Anas Malik
Raden Intan State Islamic University of Lampung, Indonesia
Moh Mukri
Raden Intan State Islamic University of Lampung, Indonesia
Irfan Nuruddin
Raden Intan State Islamic University of Lampung, Indonesia

Published 2025-07-30

Keywords

  • Village, Effectiveness, Indonesia Development, Economic Empowerment

Copyright (c) 2025 Ali Abdul Wakhid, Anas Malik, Moh Mukri, Irfan Nuruddin (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The Village Fund policy implemented in Indonesia since 2015 aims to accelerate development and increase village independence. The Village Fund, sourced from the State Budget and allocated through the district/city budget, is used to finance various aspects of village development, including infrastructure, education, health, and economic empowerment. This study aims to analyze the effectiveness of the Village Fund policy on village independence in Indonesia from 2019 to 2024. The data shows a significant increase in the number and percentage of Independent Villages and Advanced Villages, as well as a decrease in the number of Developing Villages, Underdeveloped Villages, and Very Underdeveloped Villages. This research is a qualitative research in the form of library research. The results of the study show that infrastructure development such as roads, bridges, health facilities, and education have increased mobility, economic productivity, and distribution of local products. In addition, economic empowerment programs through skills training, provision of business capital, and development of Village-Owned Enterprises (BUMDes) have helped create new jobs and increase village community income. However, this policy faces challenges such as transparency, accountability, and managerial capacity of village officials. Efforts are needed to improve supervision, accountability, and managerial capacity to support sustainable development and the welfare of village communities. The success of this policy emphasizes the importance of coordination between the central government, regional governments, and communities in achieving equitable and equitable village development.

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