Abstract
This study aims at finding out the actual condition of community empowerment activity and improvement of productive economic activities through village funds financing and gaining information on Village Funds management to increase productive economy in the village level. This is a descriptive study with a qualitative approach using Milles and Huberman as its method of analysis. This study finds that village funds financing is able to improve people’s welfare. This is evident from various achievement of the government of Bone Bolango regency. The success of this village funds in improving people’s welfare has made the central government to increase the village allocation funds for this regency annually. This village allocation fund is distributed through two channels: 1) direct disbursement for productive economic activities (grant), (2) fund disbursement for productive economic activity through Village Owned Enterprise (Hereinafter will be referred as BUMDes). To optimize this village funds management, several strategic steps such as: 1) increasing the capacity of village institution; 2). Establishment of Business Units as a joint working group needs to be done.
Highlights
One of the aspects of regional autonomy implementation is Regional Financial Management, as it is one of the regional programs in finance to achieve certain objectives through various programs and activities
Interview, and Focus Group Discussion (FGD) it is revealed that there are two models of how ADD is disbursed in increasing the productive economic activities in village level: 4.1.1 Direct Disbursement Model for Productive Economic Activities Grant This model of grant disbursement is aimed for business group or village community group to encourage, motivate and develop the community’s productive economic activities
Based on the result of this study related to Village Funds (DD) and Village Allocation Funds (ADD) in supporting the village economy and testing the proposed model, several conclusions as follow are reached: First, the management carried out by the Village Government related to the utilization of both ADD and Dana Desa (DD) in increasing village’s productive economy in principle have been carried out by most Village Governments in Bone Bolango Regency
Summary
One of the aspects of regional autonomy implementation is Regional Financial Management, as it is one of the regional programs in finance to achieve certain objectives through various programs and activities. A village has authority to obtain share from Local Tax and Local Retribution and share from the Financial Balance between Central and Local Government received by the Regency as regulated by the Government Regulation No 72 of 2005 Article 68. The village fund as sharing from the Regency is distributed to the village treasury in accordance with Article 2A of Law No 34 of 2000 on the amendment of Law No 28 of 2009 on Tax and Local Retribution. The village government is expected to independently manage village government and all village resources, including financial management and village wealth. This critical role of the village comes hand in hand with huge responsibility. The village government should be able to implement the accountability principle in its government, where the community can held its government accountable for all the activities that they carried out
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