Local Solutions to Poverty Library
Debottlenecking Distribution and Disbursement of the Village Fund
Author: SMERU Research Institute
Publish Year: 2017
Publisher: The SMERU Research Institute, Jakarta
Topic: Village Law, Dana Desa, Undang-Undang Desa, Village Fund
The distribution of Village Fund (VF) has entered its third year in 2017, yet delays in distribution and disbursement continue to occur and could potentially undermine the quality of VF spending. The challenge is how to develop a simple mechanism that accommodates village capacity, while upholding the principle of accountability. A study conducted in ten villages (in five kabupaten (districts)) showed various issues contributing to this problem, including additional requirements imposed by kabupaten and/or kecamatan (subdistricts), low administrative capacity of village governments, leadership change during elections of kabupaten head or village head, and untimely changes to central government policies. However, best practices are also found in some locations. This policy brief presented four recommendations to debottlenecking distribution and disbursement of the village fund.