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The purpose of this study is to map the potential of the village, and analyze the use of village funds by measuring the effectiveness and efficiency of village financial management, so that benefits can be obtained for economic progress in the region. Responsible use of village funds is the main focus of this research, so it is hoped that a Village-Owned Enterprise (BUMDes) can be formed which leads to an increase in Village Original Revenue (PADes). Research method used was qualitative and quantitative method with case study approach. The sample used was villages in Kecamatan Kota Soe, where village officials were the main informants. The results showed that the Kuatae and Noemeto Villages had been effective in absorbing the Village Fund budget, but were not yet efficient in managing the Village Fund. The results of this study also show that the potential of Kuatae and Noemeto villages is very diverse, but cannot be managed optimally. The role of the BUMDes has not yet been felt by the community so it needs better structuring and planning in the management of the Village Fund so that it benefits the community.

Optimizing the Use of Village Funds and Efforts to Develop Village-Owned Enterprises in South Central Timor Regency