Give space for participation, a space for villagers to develop their local potential
Jakarta (ANTARA) - Local potential in villages across Indonesia should be developed to boost the economy, according to President Joko Widodo (Jokowi).

"Securing increased leverage over the village economy is important. Village potential, local potential, related to agriculture, village tourism, industry in the village should be developed," President Jokowi noted during an introduction at the Merdeka Palace, Jakarta, at a limited meeting on "Accelerating Village Economic Improvement" held via videoconference, Thursday.

Jokowi believes that the development policy should not be applied through a "top down" approach.

On the contrary, creative space should be offered to villagers to develop their local potential.

"Give space for participation, a space for villagers to develop their local potential," he remarked.

Hence, the head of state requested that the village community be offered support for the various required facilities.

In addition, the president called to boost inter-village cooperation, so that a wider village network would be formed, thereby enabling the community or small and medium enterprises (SMEs) within it to increase the scale of their businesses.

"They should be offered easier access to capital, technology, skills, as well as cooperation between villages, so that they can enter a wider supply chain and village business actors can increase their level," the president stated.

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 the COVID-19 recovery efforts, Finance Minister Sri Mulyani Indrawati earlier 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.
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Translator: Hanni S, Azis Kurmala
Editor: Fardah Assegaf
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