"If you want to buy cement or bricks, buy it in your own village, so the money continues to circulate inside the village or the furthest at the sub-district level. Do not let the money to circulate outside the village," the president noted at the 2022 National Gathering of Indonesian Village Government Association in Jakarta, Tuesday.
Maintaining the circulation of money in the village also helps to maintain continued potential for economic growth in the village, according to Jokowi.
The president later noted that every development budget for the village should be enjoyed by the entire village community. Hence, economic effects or benefits from the development must return to the village.
Thus, it will have a multiplier economic effect from every development budget in the village with the Village Fund. The economic benefits are also expected to improve the welfare and reduce poverty level in the community.
"Village residents do not need to go to the city to buy eggs and for other needs. They can buy them in their own village to help circulate the money locally. In the end, it will reduce the poverty rate in the village," he emphasized.
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The president noted that the government had disbursed Rp468 trillion in village funds. He considered the funds to be large enough for village development.
Jokowi lauded the realization of village funds that had been channeled to build village infrastructure, such as village roads, reservoirs, and bridges, which were expected to support economic growth in villages.
Moreover, health facilities have been built from village funds, such as clean water facilities, community health center (Posyandu), Village Maternity Center (Polindes), Early Childhood Education (PAUD), and toilets.
"They also come from village funds. It will improve the quality of life and human resources in rural communities. Do not doubt how useful the village funds that we disburse to villages. It will bring economic growth in villages and affect national economic growth," Jokowi concluded.
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Translator: Indra Arief P, Resinta S
Editor: Suharto
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