Jakarta (ANTARA) - Village funding apportioned in the 2021 Draft State Budget reached Rp72 trillion, or a 1.1-percent rise, from Rp71.2-trillion in Presidential Decree 72 of 2020 to support COVID-19 recovery efforts, Finance Minister Sri Mulyani Indrawati stated.

"Our village funds will increase to Rp72 trillion next year. We will take several steps in line with the theme of supporting economic recovery," the minister noted during a joint meeting with Committee IV of the Regional Representatives Council (DPD) in Jakarta on Wednesday.

Indrawati noted that village funds were also utilized for encouraging village economic recovery, specifically by strengthening the sustainability of cash-intensive programs and a social safety net in the form of direct cash assistance (BLT).

Economic recovery was also facilitated through empowering SMEs and the agricultural business sector, encouraging transformation of the village economy through digital villages, and continuing the village potential development program, supporting superior village products, facilitating rural areas, and enhancing the role of village-owned enterprises.

"Next year's village fund policy aims to increase the share of formula allocation in order to improve the proportion of village fund allocations per village in accordance with the village characteristics," she noted.

Meanwhile, village funds are also utilized for the development of priority sectors, such as the development of information and communication technology (ICT)-based programs to support digital villages and tourism development through developing tourism villages.

The subsequent focus is on supporting food security through the development of agricultural, livestock and fishery cultivation businesses as well as improving infrastructure and connectivity whose implementation is prioritized by cash-intensive programs.

Finally, supporting the national health program through improving the poskesdes and polindes facilities, preventing infectious diseases, boosting nutrition, and reducing cases of stunting in village.

Furthermore, the government has participated in reforming the allocation and distribution of village funds, specifically through increasing the allotted share to improve the proportion of village fund allocations per village in line with the village characteristics.

Reform is also conducted by strengthening performance to encourage village development for further transforming the village economy and continuing to offer rewards to villages, with independent status, in the form of distributing village funds in two stages. Related news: Govt sets a target of 10,000 of tourism villages by 2020
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Translator: Astrid F, Azis Kurmala
Editor: Suharto
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