How village funds influence economic development in South Papua, Indonesia
-
DOIhttp://dx.doi.org/10.21511/ppm.22(1).2024.26
-
Article InfoVolume 22 2024, Issue #1, pp. 310-323
- 350 Views
-
67 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This quantitative study aims to determine the elements that influence the efficiency of village funds in terms of social and economic empowerment. Individualized solutions based on the demographics of the village, including financial support, business partners and markets, human resources, sociocultural ecology, and natural resources, are required for economic development. By collecting data from 179 village heads in South Papua province, Indonesia, this study determines that several elements substantially impact the economic empowerment of communities. However, these factors have not been fully optimized to attain economic independence of villages. With the assistance of regular support from the district government, most village heads are graduates who can effectively plan and implement programs. The distinctive qualities of a community are considered in sociocultural development programs. The development of natural resources and tourism are continuing processes that require market access and infrastructure improvement. Human resources are promising, and sociocultural initiatives align with community requirements. Therefore, addressing the problems associated with market access and resource development is vital. Village funds should promote the use of resources in a sustainable manner; however, there are still obstacles to engaging corporate land users, which calls for further investigation.
- Keywords
-
JEL Classification (Paper profile tab)H53, O38
-
References41
-
Tables9
-
Figures1
-
- Figure 1. Research model
-
- Table 1. Respondent demographic
- Table 2. Statistic summary
- Table 3. Confirmatory factor analysis results
- Table 4. F-test of Model 1 and Model 2
- Table 5. Normality test
- Table 6. Multicollinearity test of Model 1 and Model 2
- Table 7. Heteroscedasticity test of Model 1 and Model 2
- Table 8. Multiple correlation of Model 1 and Model 2
- Table 9. Output of determination of Model 1 and Model 2
-
- Arifin, B., Wicaksono, E., Tenrini, R. H., Wardhana, I. W., Setiawan, H., Damayanty, S. A., Solikin, A., Suhendra, M., Saputra, A. H., Ariutama, G. A., Djunedi, P., Rahman, A. B., & Handoko, R. (2020). Village fund, village-owned-enterprises, and employment: Evidence from Indonesia. Journal of Rural Studies, 79(8), 382-394.
- Aritenang, A. (2021). The role of social capital on rural enterprises economic performance: A case study in Indonesian villages. SAGE Open, 11(3).
- Aziiz, M. N., & Prastiti, S. D. (2019). Factors affecting village fund accountability. Journal of Actual Accounting, 6(2), 334-344.
- Br Sitepu, S. N. (2021). Entrepreneurship education for managers of Mugibangkit village-owned enterprises (VOE). Abdimas: Journal of Community Service, 6(2), 260-270.
- Chalil, T. M. (2020). The efficiency of village government spending in Indonesia: A meta-frontier analysis. Journal of Indonesian Economy and Business, 35(1), 1-16.
- Dewi, P. P. L., & Dewi, A. K. R. S. (2021). Pengaruh kompetensi, akuntabilitas dan peran pendamping desa terhadap pengelolaan dana desa [The influence of competence, accountability, and the role of village assistants on village fund management]. Scientific Journal of Accounting Students, 12(01), 820-829. (In Indonesian).
- Eryana, R. (2018). Keterbatasan sumber daya manusia terhadap kinerja pengelolaan keuangan desa [Limited human resources on village financial management performance]. IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita, 6(2), 89-95. (In Indonesian).
- Faoziyah, U., & Salim, W. (2020). Seeking prosperity through village proliferation: An evidence of the implementation of village fund in Indonesia. Journal of Regional and City Planning, 31(2), 97-121.
- Fithriyana, E. (2020). Processing products made from papaya fruit as an effort to empower the economy of rural communities. Journal of Community Service, 1(2), 1-9.
- Handayani, E., Garad, A., Suyadi, A., & Tubastuvi, N. (2023). Increasing the performance of village services with good governance and participation. World Development Sustainability, 3(6), 100089.
- Humphreys, M., Sánchez de la Sierra, R., & Van der Windt, P. (2019). Exporting democratic practices: Evidence from a village governance intervention in Eastern Congo. Journal of Development Economics, 140, 279-301.
- Imawan, S. A., & Purwanto, E. A. (2020). Governing village fund in Indonesia: Is it eradicating poverty? Policy & Governance Review, 4(1), 14-27.
- Islam, R., Ghani, A. B. A., Abidin, I. Z., & Rayaiappan, J. M. (2017). Impact on poverty and income quality in Malaysia’s economic growth. Problems and Perspective in Management, 15(1), 55-62.
- Ismawati, N. R. (2020). Pemberdayaan ekonomi masyarakat melalui badan usaha milik desa (BUMDES) [Community economic empowerment through village-owned enterprises]. Lembaran Masyarakat, 6(1). (In Indonesian).
- Jahja, J., Mohammed, N. F., Lokman, N., & Mohamed, N. (2020). Corporate governance, managerial diversion, and Indonesian state-owned enterprises: A literature review. International Journal of Financial Research, 11(5).
- Jayani, D. H. (2021, March 5). Mayoritas kepala desa berpendidikan SMA [Village heads according to level of education completed]. Databoks. (In Indonesian).
- Kostis, P. C. (2021). Culture, innovation, and economic development. Journal of Innovation and Entrepreneurship, 10, 22.
- Kriyantono, R., Laturrakhmi, Y. F., Swastikawara, S., & Ari, D. P. S. (2020). Penguatan kapasitas tata kelola keuangan dan komunikasi pada pelaksanaan program badan usaha milik desa di desa Gendro Pasuruan [Empowerment of village officials in disseminating public information to prevent corruption in implementing the VOE program in Gendro Village – Pasuruan Regency]. ABdimas Unmer Malang Journal, 4(2), 23-30. (In Indonesian).
- Li, J., Jin, T., Xiang, W., & Huang, Q. (2022). Exploring the dynamic evolutionary mechanism of game model on the protection of traditional villages. Regional Sustainability, 3(3), 188-207.
- Lobor, N., Ogotan, M., & Londa, V.Y. (2018). Role of village fund assistants in managing the village fund budget in Saluta Village, North Galela District, North Halmahera Regency. Journal of Public Administration, 4(52), 1-11.
- Menkhoff, L., & Rungruxsirivorn, O. (2011). Do village fund improve access to finance? Evidence from Thailand. World Development, 39(1), 110-122.
- Mulya, F. R. Q. (2020). Pemberdayaan ekonomi masyarakat lokal dalam upaya peningkatan pendapatan ekonomi rumah tangga di Daerah Sota Kabupaten Merauke [Economic empowerment of local communities in efforts to increase household economic income in the Sota Area, Merauke Regency]. Journal of Architecture and Planning, 10(2), 1-5. (In Indonesian).
- Murliasari, R. (2021). Implementation of village fund management policy affirmation in village development. Jurnal Bina Praja: Journal of Home Affairs Governance, 13(3), 555-567.
- Nislandi, N. A., & Munari, M. (2023). Pengaruh kompetensi pemerintah desa, transparansi, dan sistem pengendalian internal terhadap akuntabilitas pengelolaan dana desa di Sidoarjo [The influence of village government competence, transparency, and internal control systems on accountability in village fund management in Sidoarjo]. Equilibrium, 12(2), 143-150. (In Indonesian).
- Nursiani, N. P., Ratu, M., Arthana, I. K., & Wiendiyati, W. (2019). Optimizing strategies of the village fund in the new village fund in the new villages of Southwest Sumba District East of Nusa Tenggara. Advances in Economics, Business, and Management Research, 69, 235-240.
- Phillipson, J., Tiwasing, P., Gorton, M., Maioli, S., Newbery, R., & Turner, R. (2019). Shining a spotlight on small rural businesses: How does their performance compare with urban? Journal of Rural Studies, 68(9), 230-239.
- Purba, S., Silitonga, I. M., & Simbolon, T. D. (2022). Determination of community stabilization in village fund arrangement. Sharia Accounting Journal, 6(1), 45-56.
- Putra, I M. Y. D., & Rasmini, N. K. (2019). Pengaruh akuntabilitas, transparansi, dan partisipasi masyarakat pada efektivitas pengelolaan dana desa [The influence of accountability, transparency, and community participation on the effectiveness of village fund management]. E-Jurnal Akuntansi, 28(1), 132-158. (In Indonesian).
- Putri, N. I., Chandrika, N. L., Pangestu, G. L., & Suryanda, A. (2021). Peranan kearifan lokal sistem sasi dalam pengelolaan sumber daya laut Indonesia [The role of local wisdom of the sasi system in managing Indonesian marine resources]. Journal of Ecology, Society and Science, 2(1), 12-19. (In Indonesian).
- Rodiyah, I., Sukmana, H., & Choiriyah, I. U. (2021). Pengembangan kapasitas SDM aparatur dalam penyelenggraan pemerintahan desa di Desa Kenongo Kecamatan Tulangan Kabupaten Sidoarjo [Developing human resource capacity for officials in administering village government in Kenongo Village, Tulangan District, Sidoarjo Regency]. Journal of Public Administration Science, 6(1), 32-41. (In Indonesian).
- Sampean, Wahyuni, E. S., & Sjaf, S. (2019). The paradox of the recognition principle in village laws in the Ammatoa Kajang traditional community. Sodality: Jurnal Sosiologi Pedesaan, 7(3), 195-211.
- Setyawan, M. D., Sabtohadi, J., & Suhartono, H. (2022). Pengaruh tingkat pendidikan terhadap kinerja perangkat desa Bunga Jadi Kecamatan Muara Kaman [The influence of education level on the performance of Bunga Jadi Village Officials, Muara Kaman District]. Jurnal Ekonomi & Manajemen Indonesia, 18(1), 69-80. (In Indonesian).
- Suryana, S. F., Ardiwinata, S. J., & Pramudia, J. R. (2020). Peran pendamping dalam meningkatkan kemandirian wirausaha melalui pemanfaatan program dana desa [The role of companions in increasing entrepreneurship through utilization of the village fund program]. Indonesian Journal of Adult and Community Education, 2(2), 236-237. (In Indonesian).
- Suspitasari, Mas’ad, & Ali, I. (2018). Pemberdayaan ekonomi masyarakat melalui pengembangan kegiatan tambak udang di desa tambak sari kecematan poto tano kabupaten Sumbawa Barat [Community economic empowerment through West Sumbawa]. Journal of Educational Research & Development Studies, 6(2), 14-18. (In Indonesian).
- Syafingi, H. M., Dewi, D. A. S., Suharso, Heniyatun, Sulistyaningsih, P., & Rahmawati, U. (2020). Village fund optimization strategy for rural community welfare in Indonesia. Journal of Critical Reviews, 7(7), 580-583.
- Tjilen, A. P. (2019). Local community economic empowerment and corporate social responsibility. Deepublish Yogyakarta.
- Tjilen, A. P., & Moento, P. A. (2023). Analisis faktor-faktor yang memengaruhi partisipasi masyarakat dalam musyawarah rencana pembangunan di Kampung Wapeko, Distrik Animha, Kabupaten Merauke [Analysis of factors that influence community participation in development plan deliberations in Wapeko Village, Animha District, Merauke Regency]. NeoRespublica: Jurnal Ilmu Pemerintahan, 2(2), 363-377. (In Indonesian).
- Tjilen, A. P., Tambaip, B., Waas, R. F. Y., Moento, P. A., & Purnama, E. N. (2023). Strengthening Community through Organizing and Improving the PKK organization in utilizing palm oil waste. Indonesian Community Service Journal, 3(2), 257-262.
- Vani, R. V., Priscilia, S. O., & Adianto, A. (2020). Model pentahelix dalam mengembangkan potensi wisata di Kota Pekanbaru [Pentahelix model in developing tourism potential in Pekanbaru City]. Journal of Public Administration, Medan Area University, 8(1), 63-70. (In Indonesian).
- Watts, J. D., Tacconi, L., Irawan, S., & Wijaya, A. H. (2019). Village transfers for the environment: Lessons from community-based development programs and the village fund. Forest Policy and Economics, 108(12), 101863.
- Zubaidah, S., Budiman, R., Saefullah, A. D., & Widianingsih, I. (2023). An overview of slum upgrading programs in developing countries: Case study in Indonesia. Cogent Arts & Humanities, 10(2), 2264021.