"The development in these regions is carried out by strengthening the role of villages as pillars of national development," said Mardyanto Wahyu Tryatmoko, head of BRIN's Domestic Governance Center, in a dialogue on the utilization of village funds monitored online from Jakarta.
In 2022, the central government disbursed village funds amounting to Rp70 trillion (approximately US$4.51 billion), allocated to 74,954 villages across 434 regencies and cities nationwide.
Tryatmoko noted that the average annual growth rate of village funds reaches 9.5 percent, demonstrating the central government's commitment to supporting village communities.
He emphasized that the allocation of village funds plays a crucial role in strengthening village infrastructure.
"Village funds can contribute to a 15 percent reduction in poverty rates in villages, primarily through an increase in household consumption. This has been shown to stimulate economic growth, particularly in rural areas," he remarked.
The Developing Village Index shows the effectiveness of village funds in bolstering development activities and enhancing village economies.
In 2019, the proportion of villages classified as independent stood at 1.22 percent, rising to 8.43 percent by 2022.
Similarly, the number of villages categorized as developed has steadily increased, while the number of villages categorized as developing has continued to decrease.
"This indicates a positive impact of village funds on village progress," he remarked.
The Ministry of Home Affairs affirmed that village funds can be utilized to explore the potential of local wisdom so that the villagers' income can increase.
Director General of Village Government Development at the Ministry of Home Affairs, Eko Prasetyanto Purnomo Putro, stated that the government is actively engaged in enhancing the capacity of village officials through the Village Government and Development Strengthening Program (P3PD).
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Translator: Sugiharto Purnama, Raka Adji
Editor: Anton Santoso
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