Dilemma of Local Development under Village Funds Program in Indonesia
DOI:
https://doi.org/10.19109/ampera.v6i01.28671Keywords:
Village Fund, Rural Infrastructure, Economic Empowerment, 3T VillagesAbstract
This study analyzes the effectiveness of the Village Fund program in encouraging village development, focusing on Tanjung Baringin Village, a disadvantaged, frontier, and outermost (3T) area in Padang Lawas Regency, North Sumatra. Through a descriptive-quantitative approach supported by qualitative interviews, this study evaluates citizens' perceptions of the two main dimensions of the Village Fund: infrastructure development and economic empowerment. The survey results show that the majority of respondents recognize the contribution of the Village Fund to physical development, such as roads, bridges, and other basic facilities. However, the impact on improving the village economy is still limited, with only 47.4% of respondents feeling a positive influence. The development of Village-Owned Enterprises (BUMDes) has also not shown optimal performance, with a high level of neutrality and skepticism among the community. These findings reflect the imbalance between budget allocation and perceived substantive benefits. Therefore, this study emphasizes the importance of shifting Village Fund policies from a purely physical orientation to a holistic approach that is more responsive to the social and economic needs of local communities. This study makes an important contribution in understanding development challenges in 3T areas and offers an evaluative framework for more inclusive village development policies.References
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