Ferry Andriyanto Alvin

PRINCIPLES OF VILLAGE FUND MANAGEMENT WITH GOOD GOVERNANCE

Introduction

Principles of village fund management with good governance. Analyze good governance in Indonesia's village fund management. Discover challenges in transparency, accountability & community participation, proposing solutions for effective local development.

Abstract

This paper addresses the importance of village fund management in Indonesia, a significant challenge given the sheer number of villages, totaling tens of thousands across the archipelago. The implementation of Good Governance principles in village fund management is crucial to ensure transparency, accountability, participation, and efficiency in fund utilization. This research aims to investigate how these Good Governance principles are applied in the management of village funds in Indonesia. The research methodology includes policy document analysis, case studies of implementation in selected villages, and interviews with stakeholders. Findings indicate that while efforts are made to apply Good Governance principles, challenges remain in practice, such as limited transparency in decision-making, inadequate community participation in monitoring, and insufficient accountability in fund utilization. Recommendations for improvement include expanding public access to information, strengthening independent oversight mechanisms, and enhancing awareness and capacity regarding the importance of Good Governance at the village level. These steps are expected to enhance the effectiveness of village fund management and support sustainable development at the local level.

Review

The paper, "PRINCIPLES OF VILLAGE FUND MANAGEMENT WITH GOOD GOVERNANCE," addresses a critically important and highly relevant topic concerning local development and public finance management in Indonesia. The sheer scale of village funds across tens of thousands of villages underscores the necessity of robust governance frameworks. The explicit focus on Good Governance principles—transparency, accountability, participation, and efficiency—is commendable, as these are fundamental to ensuring that significant public resources are utilized effectively and equitably for sustainable local development. The research objective, to investigate the application of these principles, is clearly articulated and directly responds to a pressing policy and practical challenge. A significant strength of the proposed methodology lies in its multi-faceted approach, combining policy document analysis, case studies in selected villages, and interviews with various stakeholders. This triangulation of data sources promises a comprehensive and nuanced understanding of both the normative framework and the practical realities of implementation. The findings, as summarized, judiciously highlight that while efforts are indeed being made to integrate Good Governance principles, substantial challenges persist. The identification of specific hurdles such as limited transparency in decision-making, inadequate community participation in monitoring, and insufficient accountability in fund utilization provides valuable insights into the gaps between policy intent and ground-level execution. The recommendations presented—expanding public access to information, strengthening independent oversight mechanisms, and enhancing awareness and capacity at the village level—are practical, actionable, and directly address the identified shortcomings. These suggestions underscore the need for multi-pronged interventions, encompassing both structural improvements and human capacity development, to foster better governance. This research holds significant potential to inform policy adjustments, guide capacity-building initiatives, and ultimately contribute substantially to more effective and equitable village fund management, thereby enhancing local development outcomes in Indonesia.

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