Open AccessAn evaluation of village funds spending to promote sustainable communities: The case Cihideung Village, West Java
Author(s) -
Z. S. Iskandar,
Adiwan Aritenang
Publication year - 2020
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/447/1/012017
Subject(s) - business , economic growth , government (linguistics) , indonesian , finance , economics , linguistics , philosophy
The Indonesian government initiated the Village Funds since 2015. This study looks at the Cihideung village classified under ‘Desa Maju’ based on the Indonesian village typology. The Building Villages Index of Cihideung Village is 0.733, which shows that it has high economic, social, and ecological resilience. Thus, the development impact from the government’s Village Funds program the village is expected to be large. This paper provides a frontier study on the evaluation of the Village Fund’s effectiveness on rural development. In the first two years of Village Fund implementation, the law directs that Village Funds should be prioritized for village development programs and empowering rural communities with the aim to improve the village economy. In the case of Cihideung Village, most of the funds are deployed for road construction. Considering the recent implementation of the law, this study conducted statistics path analysis to evaluate the immediate impact of Village Funds spending on accelerating the village economy. This paper shows that Village Funds has accelerated the economy through harnessing local economic potential, i.e., providing an increase in income and of employment as well as reduced transportation costs. Study found that Village Funds have a positive impact on rural and community development.