Director General of Villages Governance: Village Funds Should Only Be "Hook"

TEMPO.CO, Bali - The Director General of Villages Governance at the Ministry of Home Affairs, Eko Prasetyanto Purnomo Putro, stated that the village’s self-reliance can be achieved when the village officials have the capability to manage village funds. This way, the Village Original Income (PADes) can increase.

"The village funds should only serve as a hook and a tool for the village officials to explore the village's potential in accordance with its local wisdom, thus generating better income for the village," said Eko while attending a technical meeting for village officials training in Bali on Friday, October 13, 2023.

The government is currently working to strengthen the capacity of village officials through the Village Officials Strengthening and Development Program (P3PD). This program is a collaboration between the Indonesian government and the World Bank.

Eko explained, according to a study by the Central Statistics Agency (BPS), the contribution of village original income (PADes) in 2021 to the total village revenue, was 2.59 percent. Village funds from the government and village fund allocations have a more significant contribution. "Villages still depend on transfers," he said.

To assist village officials, Eko said that the central government and local governments could encourage the development of Village-Owned Enterprises (BUMDes).

Assistance includes grants or access to capital, technical assistance and market access, and prioritizing BUMDes in managing the village's natural resources.

In addition, the government could provide guidance in the form of technical assistance and capacity building. "The key to successful BUMDes is good management, therefore, the local governments must pay attention to the improvement of the capacity of BUMDes managers," he explained.

Other forms of guidance and development include grant funding. "Assistance from local governments doesn't always have to be in the form of a budget," he said.

On the contrary, according to Eko, local governments must carefully assess what the primary needs of BUMDes are. Thus, the assistance provided can significantly, effectively, and precisely contribute to improving BUMDes.

Local governments can also encourage banks or private entities in their regions to provide access to capital loans or other contributions. (*)

INFO TEMPO

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