Improving the Welfare of Border Communities: The Mediating Role of Good Governance on the Relation between Intellectual Capital and Social Capital

Purpose: This study aims to determine the role of effective governance as a mediating variable in the relationship between intellectual capital and social capital to improve community welfare in border villages, especially in Belu Regency, Indonesia. Methodology: This study uses a quantitative approach and Partial Least Squares (PLS) analysis method. Data from 155 families in border areas was collected with a survey from 28 border villages in Belu Regency that have distinctive socio-cultural characteristics. Results: Effective governance has been proven to mediate the relationship between intellectual capital and community welfare. Meanwhile, in the relationship between social capital and welfare, partial mediation was found. The distribution of well-managed village funds improves welfare, even with limited intellectual capital. Conclusions: Good governance encourages the compliance of village fund managers with the rules. Strong social capital and local customs-based also strengthen the impact of fund management on welfare. Limitations: The findings are contextual in certain villages in Belu, so they cannot be generalized. This research emphasizes the importance of strengthening governance and integrating traditional values in village resource management. Contribution: This research contributes to the literature by integrating intellectual capital, social capital, and governance into a single framework, highlighting how governance mediates development outcomes in marginalized border communities.

Village funds are given to the village to be managed properly so that the village can provide welfare for the village community and village development. The management of village funds must be carried out gradually and carefully in its use, besides that it must be adjusted to the existing legal rules so that there is no misuse of village funds. Harjowinangun Barat Village is one of the villages in Batang Regency, where the village community still needs village funds to achieve community welfare. The village head and other village officials need to manage village funds properly following the rules and principles of good governance. The problems in this service are: (1) What are the obstacles for Harjowinangun Barat Village, Batang Regency in managing village funds? (2) How is the application of Good Governance principles in the management of Village Fund Allocation in Harjowinangun Barat Village, Batang Regency? Service activities are carried out by analyzing the problems in Harjowinangun Barat Village. After that, the team carried out a service program to realize the management of village funds following the principles of good governance. The team’s final activities were conducting discussions and forums for problem-solving around village fund management. This program aims to help government officials carry out government bureaucracy and provide assistance in managing village funds following the principles of good governance. Assistance in the transparent management of village funds for the development and development of productive economic enterprises. The West Harjowinangun BUMDes business in Batang Regency, which had been pioneered and has failed due to the pandemic, has begun to be rebuilt using village funds. In addition, the Village Fund in West Harwowinangun is planned for the construction of sports facilities.

The purpose of this research is to test and prove that community participation and village fund management affect the effectiveness of village fund management through accountability in managing village funds in the Serjadi sub-district. In this study, the population is village government in multi-purpose sub-districts. Serba Jadi District is one of the Districts in Serdang Bedagai Regency. The sample in this study were 10 villages, each village using 4 respondents with a total of 40 respondents. The sampling technique in this study used a purposive sampling method, namely that each element in the population does not provide the same opportunity to be selected as a sample. The data collection method in this study was carried out by survey method to obtain primary data by way of interviews, questionnaires, with the data analysis technique used, namely path analysis which is an analytical tool to answer the problem formulation and at the same time prove the research model. This study uses the Partial Least Square (PLS) data analysis method. The results of the analysis show that community participation has no significant effect on the effectiveness of village fund management, community participation on village fund management accountability has no significant effect, village fund governance has no significant effect on village fund management effectiveness, village fund governance on village fund management accountability has a significant effect, village fund management accountability has a significant effect on village fund management effectiveness, community participation through accountability has no effect on village fund management effectiveness, village fund governance through village fund management accountability has a significant effect on village fund management effectiveness. This shows that if the participation by the community and governance of village funds with accountability for managing village funds is higher, the effectiveness of managing village funds is also better, but if it is the opposite, the effectiveness of managing village funds is also not good.

This research aims to analyze village fund plan which is managed by village apparatus with good village government management (good governance) to support the success of village fund program in empowering villagers. Sample retrieval technique in this research is non probability sampling with a kind of sensus sample, that is 23 respondents which is consist of village apparatus and member of BPD in Asinan village Bawen District Semarang Regency. Data analysis in this research uses regression analysis and path analysis. The result of this research shows that village fund plan has a positive impact toward good governance, and good governance has a positive impact toward the success of village fund program.Path analysis result shows that village fund plan has a direct effect toward success of village fund program in empowering society without uses good governance as intervening variable. A comprehension of village apparatus about village fund management which is appropriate with rule of low must be continuously socialized to avoid problems that may occur later in the future in village fund management.

Ideally, the allocation of village funds is sought so that its management can be efficient and effective in the directions for which the funds are given. So the allocation of the Village Fund is a manifestation of the fulfillment of the village's right to carry out its autonomy, to realize the growth and development of Bungko Lor Village, Kapetakan District, Cirebon Regency, and to obtain financing in the form of a budget to carry out authority and at the same time support the implementation of good development. The purpose of this study is to determine the management of village funds and the obstacles in managing village funds in Bungko Lor Village, Kapetakan District, Cirebon Regency. The results of this study are as follows: 1. The management of Bungko Lor village funds, Kapetakan District, Cirebon Regency is to see the priority of using village funds to finance the implementation of programs and activities in the field of Village Development and Village Community Empowerment. The technical mechanism for managing village funds refers to the Cirebon Regent Regulation Number 25 of 2015 concerning Village Financial Management, starting from the stages of planning, implementation, reporting and accountability. 2. The management of village funds in Bungko Lor Village, Kapetakan District, Cirebon Regency has obstacles in implementation, namely a) Human resources that are not yet reliable and incompetent in managing village finances; b) low self-reliance of village communities; c) Direct community supervision by the community in managing village funds in Bungko Lor village has not yet occurred; d) community participation is very weak, sometimes it is carried out only unilaterally; e) Community understanding there are still many people who do not understand and do not know the use of village funds.
 Keywords: Juridical Study, Management, Village Fund.
 Ideally, the allocation of village funds is sought so that its management can be efficient and effective in the directions for which the funds are given. So the allocation of the Village Fund is a manifestation of the fulfillment of the village's right to carry out its autonomy, to realize the growth and development of Bungko Lor Village, Kapetakan District, Cirebon Regency, and to obtain financing in the form of a budget to carry out authority and at the same time support the implementation of good development. The purpose of this study is to determine the management of village funds and the obstacles in managing village funds in Bungko Lor Village, Kapetakan District, Cirebon Regency. The results of this study are as follows: 1. The management of Bungko Lor village funds, Kapetakan District, Cirebon Regency is to see the priority of using village funds to finance the implementation of programs and activities in the field of Village Development and Village Community Empowerment. The technical mechanism for managing village funds refers to the Cirebon Regent Regulation Number 25 of 2015 concerning Village Financial Management, starting from the stages of planning, implementation, reporting and accountability. 2. The management of village funds in Bungko Lor Village, Kapetakan District, Cirebon Regency has obstacles in implementation, namely a) Human resources that are not yet reliable and incompetent in managing village finances; b) low self-reliance of village communities; c) Direct community supervision by the community in managing village funds in Bungko Lor village has not yet occurred; d) community participation is very weak, sometimes it is carried out only unilaterally; e) Community understanding there are still many people who do not understand and do not know the use of village funds.
 Keywords: Juridical Study, Management, Village Fund.

This research was conducted at the Tourism Awareness Group (Pokdarwis) of Nglanggeran Tourism Village, Patuk District, Gunungkidul Regency, D.I.Yogyakarta Province with the following objectives: 1) Knowing the influence of social capital on village fund management; 2) Knowing the effect of village fund management on community empowerment; 3) Knowing the effect of social capital on community empowerment; 4) Knowing the effect of social capital on community empowerment mediated by village fund management. This type of research is quantitative with an associative approach. The population in this study was 80 people who were members of the Tourism Awareness Group (Pokdarwis) of Nglanggeran Tourism Village and used saturated samples. Data analysis techniques use structural equation modeling (SEM), especially Partial Least Square (PLS). The results of this study show that social capital has a significant effect on Village Fund Management, Village Fund Management has a significant effect on Community Empowerment, Social Capital directly does not affect Community Empowerment, but Social Capital will have a significant effect on Community Empowerment if through mediation variables Village Fund Management.

The Village Fund Allocation aims to finance village government apparatus allowances, infrastructure development, social activities and investment in the economic development of rural communities. South Maurisu Village in South Bikomi District is one of the villages receiving Village Fund Allocation. Village fund management is an important factor in empowering and improving the welfare of the people of South Maurisu Village. The purpose of this study was to determine the effect of village fund management on community empowerment and welfare. The study was conducted in South Maurisu Village with a sample of 87 people from village officials and the community. Verification analysis in this study uses statistical test equipment, namely the Variance-based structural equation test or better known as Partial Least Square (PLS). The results of the analysis show a positive relationship between village fund management on community empowerment and welfare.

The purpose of this study was to empirically test the effect of accountability, whistleblowing, apparatus competence and the effectiveness of internal control on fraud prevention in managing village funds. The research was conducted at the Village Government in the Province of DIY. The method used in this research is mix methods. The stages of the method are 1). quantitative method by distributing questionnaires to the respondents and continued 2). qualitative method, namely by interviewing the respondents. The analysis tool for model testing uses Partial Least Square (PLS). The results of the quantitative study showed that the prevention of fraud in the management of village funds which was tested on the Village government in the DIY Province proved to be empirically positively influenced by the accountability factor while the whistleblowing factor, apparatus competence, and internal control did not positively affect it. The results of the qualitative research can be concluded from the interview process that it can be concluded that the process of planning, compiling, implementing and reporting village funds in the Village Government of the Village of Kalurahan in the Provincial Government of DIY, as a whole refers to the mechanism of provisions and rules that have been established both at the Regional Regulation level (Perda), District Regulations and Village Regulations of the Village government. The use of village funds and reporting of village funds, regular monitoring and inspection is carried out by other parties or institutions or agencies appointed by the village village administration. In preventing and overcoming fraud in the management and use of village funds, the village government cooperates with the government inspectorate to provide guidance and assistance for routine inspections from the Provincial BPK/BPKP, and Consultants.

The purpose of this study was to examine organizational culture in moderating the influence of internal control and community participation on fraud prevention in managing village funds during the COVID-19 pandemic. The sample of this study was 27 villages in the province of Bali with 3 villages in each district/city having the highest Village Fund Direct Cash Assistance so that there were 161 respondents. Data was collected using a questionnaire. The data analysis technique used the Partial Least Square (PLS) method. Results show that internal control and community participation have a positive effect on preventing fraud in managing village funds during the COVID-19 pandemic. The results also show that organizational culture strengthens the influence of internal control and community participation on fraud prevention in managing village funds during the COVID-19 pandemic. This shows that the better internal control and community participation which is strengthened by organizational culture, the prevention of fraud in the management of village funds during the COVID-19 pandemic will be better.

Fraud is an issue that still affects organizations on a regular basis. The administration of village funds was one of the fraud incidents. Increasing each person's anti-fraud awareness and creating a whistleblowing system that serves as a conduit for reporting any act of violation committed within the organization are two ways to reduce the number of fraud cases involving village fund administration. There were fifteen villages in the Mengwi sub-district that made up the research population. People who might be involved in managing village finances, such as the village consultative council, the village head, the village secretary, and the village treasurer, made up the research samples. Partial Least Square (PLS) analysis with a variance-based SEM equation model was used to evaluate hypotheses. The test results found that anti-fraud awareness had an effect on the whistleblowing system, anti-fraud awareness had an effect on fraud prevention in village fund management, the whistleblowing system had an effect on fraud prevention in village fund management, and anti-fraud awareness through the whistleblowing system had an impact on fraud prevention in village fund management.

This community service initiative explores the synergistic relationship between village funds and social capital in empowering communities in Rantau Duku, Jambi, Indonesia. Recognizing the potential of village funds as a catalyst for development and the vital role of social capital in facilitating collective action, this project aimed to enhance community capacity to effectively utilize these resources for local development. This project employed a participatory action research (PAR) approach, involving community members in all stages of the initiative. The intervention included capacity-building workshops on village fund management, participatory planning, and conflict resolution, along with facilitating community dialogues to strengthen social cohesion and trust. The project resulted in increased community participation in village development planning and budgeting processes, improved transparency and accountability in village fund management, and enhanced social cohesion among community members. Several community-led initiatives were successfully implemented, including infrastructure improvements, economic empowerment programs, and social welfare programs. In conclusion, this initiative demonstrates the transformative potential of combining village funds with strong social capital to empower communities. By fostering community ownership and participation, and strengthening social cohesion, this approach can effectively contribute to sustainable and equitable development in rural Indonesia.

Village development in Indonesia is one of the main focuses of achieving overall community welfare. With Law No. 3 of 2024 on Village Development, the government emphasizes the importance of effectively and efficiently managing village funds. This law regulates the governance, planning, implementation, and accountability of using village funds to ensure that allocating funds provides maximum benefits for village communities. This study aims to outline and evaluate the Good Corporate Governance principles used by the Jambanan Village Government in the Sidoharjo District of the Sragen Regency in managing village money. This kind of study combines a qualitative and descriptive methodology. Based on real-world occurrences, this study design is thought to be the best way to thoroughly describe the good governance concepts in the Jambanan Village administration. The methods used for gathering data include observation, documentation, and interviews. The selected informants are the village head, village secretary, village treasurer, community leaders, neighborhood association, youth organization leader, and village deliberation body. The study's findings show that the values of independence, responsibility, accountability, and fairness have all been appropriately applied. As a result, the transparency concept has not been correctly applied. The outcome showed that Jambanan village governance's money management practices did not adequately apply the concepts of good corporate governance.

Village funds allocation has been provided to village government by central government starting in 2015. The provision of village funds aims at ingreasing equitable development in urban areas. This study aims to design a model of implementation of village funds management and farmer empowerment, with a case of Manusasi Village, Timor Tengah Utara Distirct, bordering with Timor Leste. This research was conducted in August-September 2020. The methods used in this research were quantitative descriptive analysis and SEM based on variance, namely Partial Least Square (PLS). The sampling method used in this study was accidental sampling, with the chosen sample of 75 households from the total population 258 household farmers. Results of this study indicated that planning had a significant effect on the evaluation process of village funds. The multiplier effect value of village funds in Manusasi Village was 1.39. There was no direct effect between physical capital, social capital, and human capital on the empowerment of farming community in Manusasi Village. An important component of the implementation model of village fund management and farmer empowerment is the socialization of the use of village funds which aims to increase public knowledge about village funds and build partnerships with universities or other institutions as sources of experts. The role of experts is to help improve village fund management and improve the quality of programs and planning. ABSTRAK Alokasi dana desa diberikan kepada pemerintah desa oleh pemerintah pusat dimulai pada tahun 2015. Pemberian dana desa bertujuan untuk meningkatkan pemerataan pembangunan di daerah pedesaan. Penelitian ini bertujuan untuk merancang model pelaksanaan pengelolaan dana desa dan pemberdayaan petani dengan melakukan studi kasus di Desa Manusasi, Kabupaten Timor Tengah Utara yang berbatasan dengan Timor Leste. Penelitian dilaksanakan dari Agustus-September 2020. Metode penelitian yang digunakan adalah metode deskripsi kuantitatif dan SEM Partial Least Square. Metode pengambilan sampel yang digunakan dalam penelitian ini adalah accidental sampling, dengan contoh terpilih sebanyak 75 keluarga dari populasi sebanyak 259 keluarga petani. Hasil penelitian menunjukkan bahwa proses perencanaan dana desa memiliki pengaruh signifikan terhadap proses evaluasi penggunaan dana desa. Angka pengganda dari dana desa di Desa Manusasi sebesar 1,39. Tidak ada pengaruh langsung antara modal fisik, modal sosial, dan manusia terhadap keberdayaan petani di Desa Manusasi. Komponen penting dari model pelaksanaan pengelolaan dana desa dan pemberdayaan petani adalah sosialisasi penggunaan dana desa yang bertujuan untuk meningkatkan pemahaman masyarakat mengenai dana desa serta membangun kemitraan dengan universitas ataupun lembaga lainnya sebagai sumber tenaga ahli. Peran tenaga ahli adalah untuk membantu peningkatan pengelolaan dana desa dan peningkatan kualitas program dan perencanaan program.

Village funds allocation has been provided to village government by central government starting in 2015. The provision of village funds aims at ingreasing equitable development in urban areas. This study aims to design a model of implementation of village funds management and farmer empowerment, with a case of Manusasi Village, Timor Tengah Utara Distirct, bordering with Timor Leste. This research was conducted in August-September 2020. The methods used in this research were quantitative descriptive analysis and SEM based on variance, namely Partial Least Square (PLS). The sampling method used in this study was accidental sampling, with the chosen sample of 75 households from the total population 258 household farmers. Results of this study indicated that planning had a significant effect on the evaluation process of village funds. The multiplier effect value of village funds in Manusasi Village was 1.39. There was no direct effect between physical capital, social capital, and human capital on the empowerment of farming community in Manusasi Village. An important component of the implementation model of village fund management and farmer empowerment is the socialization of the use of village funds which aims to increase public knowledge about village funds and build partnerships with universities or other institutions as sources of experts. The role of experts is to help improve village fund management and improve the quality of programs and planning. ABSTRAK Alokasi dana desa diberikan kepada pemerintah desa oleh pemerintah pusat dimulai pada tahun 2015. Pemberian dana desa bertujuan untuk meningkatkan pemerataan pembangunan di daerah pedesaan. Penelitian ini bertujuan untuk merancang model pelaksanaan pengelolaan dana desa dan pemberdayaan petani dengan melakukan studi kasus di Desa Manusasi, Kabupaten Timor Tengah Utara yang berbatasan dengan Timor Leste. Penelitian dilaksanakan dari Agustus-September 2020. Metode penelitian yang digunakan adalah metode deskripsi kuantitatif dan SEM Partial Least Square. Metode pengambilan sampel yang digunakan dalam penelitian ini adalah accidental sampling, dengan contoh terpilih sebanyak 75 keluarga dari populasi sebanyak 259 keluarga petani. Hasil penelitian menunjukkan bahwa proses perencanaan dana desa memiliki pengaruh signifikan terhadap proses evaluasi penggunaan dana desa. Angka pengganda dari dana desa di Desa Manusasi sebesar 1,39. Tidak ada pengaruh langsung antara modal fisik, modal sosial, dan manusia terhadap keberdayaan petani di Desa Manusasi. Komponen penting dari model pelaksanaan pengelolaan dana desa dan pemberdayaan petani adalah sosialisasi penggunaan dana desa yang bertujuan untuk meningkatkan pemahaman masyarakat mengenai dana desa serta membangun kemitraan dengan universitas ataupun lembaga lainnya sebagai sumber tenaga ahli. Peran tenaga ahli adalah untuk membantu peningkatan pengelolaan dana desa dan peningkatan kualitas program dan perencanaan program.

This research tries to analyze empirically: the influence of village fund allocation and Village Fund management in villages in Samalanga District on the performance of village heads. As well as its relationship with community welfare. Using a number of community samples as sources, through questionnaires. With a quantitative path analysis approach. The research results show: (1) Village Fund Allocation is related to village fund management. (2) Village fund allocation affects the performance of the Village Head by 18.13%. (3) Village Fund Management influences Village Head Performance by 22.05%. (3) Simultaneously the allocation of village funds and management of village funds makes a significant contribution to the performance of the Village Head by 64.2%. (4) There is an influence of the Village Head's performance on the welfare of the village community by 55.8%. (5) There is a direct and indirect influence of village fund allocation on community welfare in the village of Samalanga District, Bireuen Regency, namely 19.82%, there is also a direct and indirect influence of village fund management on community welfare. the community in Samalanga Village, Samalanga District is 23.03%.