Abstract
Since 2015, the Government has allocated village development funds in the form of Village Fund policies of IDR 20.7 trillion, then in 2016 it increased to IDR 46.9 trillion, and continues to increase in the following years. However, based on field research in a number of regions in Indonesia, it turns out that the use of Village Funds is not optimal, some of which have been proven wrongly targeted, not transparent in use, and not accountable in reporting. The aspect of planning activities and the quality of human resources implementing policies and coordination between parties that should play a role are still a major problem.
 The PPP (Public-Private Partnership) model is actually intended for the development of large-scale projects, such as the construction of highways or seaports and airports. But by taking the substance of cooperation from the parties that each have strengths, the PPP model (and its variants) may be applicable in the use of Village Funds. Using secondary data analysts, the following article discusses the theoretical aspects of the advantages of the PPP model. This model is juxtaposed with cases of success in building the economic self-reliance of rural communities with the help of private parties and academics. It is assumed that the partnership model can be an alternative solution to further optimize the use of Village Funds in order to reduce poverty in rural areas.
Highlights
In Indonesia, the village is the center of the problem of the welfare of the nation's life
Other data showed that the centers of poverty and gap in Indonesia are in rural villages and regions in Eastern Indonesia
Each party was represented by two people, and their task is: (1) To deal fairly and smoothly with possible arguments between Public Sector and PFI Project Company (SPC) during the execution of the project; (2) Judgment of service monitoring the outcome and contract termination; and (3) Assessment of the quality of assets transferred to the Public Sector at the end of the contract, etc
Summary
In Indonesia, the village is the center of the problem of the welfare of the nation's life. This is related to demographic facts, where 51 percent of the population of this country lives in villages with all their dynamics (BPS, 2010), and poverty problems related to income inequality and low economic productivity of the people, when compared to the level of income and productivity of the community urban. Quoting Kompas.com (3/29/2017), the percentage of rural poverty was recorded at 13.96 percent or almost double the percentage of the poor in the city by 7.7 percent. As many as 60.91 percent of the poor live in the village. The majority of them work in the agricultural sector, which is 49.9 percent (Kompas, 07/31/2018)
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