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Since 2015 the Indonesian government had started Village Fund (VF) program to increase villagers’ purchasing power and welfare, build infrastructure and increase employment. However, there was evidence that the results of the programs were not as expected. Instead, there were many management and accountability problems found in the program. This study investigates the factors that can possibly explain the problems using four dimensions, namely, Financial Management, Village Infra-structure, Society Empowerment, and Misappropriation. Using a survey, we choose the officers from fifteen villages in North Sulawesi Province. Using score indexing, we study changes in behaviors of village officers toward these dimensions due to a treatment that we make. The treatment is to make the officers aware of the regulations required for VF management. We also examine how the change in the VF management leads to change in economic growth rate. The findings suggest that there is an improvement in the VF management after the treatment. Additionally, due to improvement in VF management, the villages can potentially experience economic growth rates of between 3.44% and 3.98% contributed solely by the VF program. Keywords—village fund; measure dimensions; management and usage; misappropriation

Has Behavior of Village Governments Toward Village Fund Management Changed as Regulation Treatment Takes Place? (Evidence from North Sulawesi Province, Indonesia)