Without good governance, villages will not contribute well to supporting national economic growth.
Jakarta (ANTARA) - The utilization of village funds has helped cut poverty and unemployment in villages amid the pandemic, a researcher from the Economic Research Center of the National Research and Innovation Agency (BRIN) has said.

"The villages’ poverty and unemployment rates increase is lower than cities’ due to the funds," Pihri Buhaerah affirmed at a virtual media briefing on the 'Outlook for the Indonesian Economy in 2022', accessed from here on Thursday.

The funds have been considered highly effective in reducing poverty and joblessness in villages, he reiterated. The total village funds disbursed during 2015–2021 have reached Rp400.1 trillion, he noted.

The number of villages receiving the funds was recorded at 82,395 villages in 2016, he informed. Later, the number increased to 83,381 villages, he added.

Buhaerah said he hoped that the funds can be managed better since a number of problems are still hindering their utilization. For instance, the funds are vulnerable to abuse of authority as village elites often dominate the management of the funds, he explained.

Related news: 71.44% village funds disbursed to tackle poverty: minister

In addition, some initiations of village programs have not been accommodated in the National Development Planning Meeting, he informed.

Furthermore, village-owned enterprises (BUMDes) have not been optimal in implementing entrepreneurship and good business management, he added.

Hence, Buhaerah said he believed that the utilization of village funds requires good village governance that applies proper governance and social innovation.

"Without good governance, villages will not contribute well to supporting national economic growth," he added.

The government has issued Presidential Regulation Number 104/2021 on the 2022 State Budget Outline, which regulates the allocation of village funds, he noted.

The government has set aside 40 percent funds for village fund cash transfer (BLT) assistance, 30 percent for the food resiliency program, 8 percent for COVID-19 handling, while the rest can be used for other priority sectors, he said.

According to data provided by the Villages, Disadvantaged Regions Development, and Transmigration Ministry, 5,621,644 families are receiving BLT assistance.

Related news: Govt has distributed Rp468.9 trillion to villages since 2015: ministry




Translator: Agatha Victoria, Uyu Liman
Editor: Rahmad Nasution
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