The Village Fund Program in Indonesia: Measuring the Effectiveness and Alignment to Sustainable Development Goals

Paulina Permatasari,Carol Ann Tilt,Rita Helbra Tenrini,Dian Lestari,Saiful Islam,Agunan Paulus Samosir,Arif Budi Rahman,Assyifa Szami Ilman,Irwanda Wisnu Wardhana

doi:10.3390/su132112294

Abstract

This study analyzes the Indonesian Village Fund (VF) Program by mapping each VF-related activity to all 17 SDGs (Sustainable Development Goals), and then determines an SDG-based VF allocation in 2018, 2019, and 2020. This study used data from all villages in Indonesia and is the most comprehensive study in Indonesia to address the knowledge gap between VF allocation and SDGs by analyzing the distribution of the use of the VF. The objectives of this paper are: (1) to provide the extent of VF usage to provide evidence on whether this utilization was aligned with the targeted SDGs, and (2) to provide information regarding village activities funded by the VF that were linked to each SDG. The results from this analysis can be used to encourage the Government to socialize and provide an understanding of SDGs to village leaders. Moreover, since Indonesia has developed Village SDGs, which are based on national SDG targets and localization of global SDGs to adapt to local culture as well as social and environmental conditions, it is recommended that other developing countries could formulate similar strategies to help achieve their national SDG targets and to develop rural areas in a more targeted way by prioritizing the most relevant issues. The study shares lessons learned from Indonesian experience in managing fiscal policy to more than 70,000 autonomous villages through the village fund program in the last five years.

Highlights

To reduce inequality among countries and improve quality of life, the United Nations introduced a new series of goals called Sustainable Development Goals (SDGs) in 2015, made up of 17 goals and 169 associated targets to be achieved over the 15-year period2016–2030
Based on the analysis of Village Fund (VF) activities and allocation related to the SDGs, it can be concluded that VF activities are mostly related to development activities and improving infrastructure
This can be seen from the VF allocation for SDG 9, especially in 2018 and 2019, which was significantly larger compared to the other SDGs, and consumed more than half of the total fund

Summary

Introduction

To reduce inequality among countries and improve quality of life, the United Nations introduced a new series of goals called Sustainable Development Goals (SDGs) in 2015, made up of 17 goals and 169 associated targets to be achieved over the 15-year period2016–2030. To reduce inequality among countries and improve quality of life, the United Nations introduced a new series of goals called Sustainable Development Goals (SDGs) in 2015, made up of 17 goals and 169 associated targets to be achieved over the 15-year period. The 2030 agenda for sustainable development is a development plan carried out around the world to eradicate poverty, provide a decent life, and establish peace, which is to be fulfilled by 2030 [1]. The goals to be achieved in the 2030 Agenda depend on the entire global society being able to maximize synergies and deal with existing trade-offs [2]. Since the SDGs were announced, many stakeholders have expressed concern: are they achievable? On the government side, operationalizing the SDGs within a government’s budgetary framework, in terms of spending, is a huge challenge.

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