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Minister: Village Funds Increase to 120 Trillion in 2018

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28 March 2017 08:54 WIB

Minister of Village, Development of Disadvantaged Region, and Transmigration Eko Putro Sandjojo. TEMPO/Eko Siswono Toyudho

TEMPO.CO, Jakarta -  Minister of Village, Development of Disadvantaged Region, and Transmigration Eko Putro Sandjojo revealed that the government will increase village funds allocation for 2018 to around Rp 120 trillion.

"This year, Rp 60 trillion in village funds have been disbursed, averaging Rp 800 million per village. And, we plan to increase it to Rp 120 trillion next year and every village will receive in excess of Rp1 billion," Minister of Village, Development of Disadvantaged Region, and Transmigration Eko Putro Sandjojo said in Malang, East Java on Monday, March 27, 2017.

According to the Minister, the disbursement of village funds has steadily increased over the years. In 2015, Rp 20.76 trillion was disbursed or an average of Rp 280.3 million per village. In 2016, Rp 46.98 trillion was disbursed or an average of Rp 643.6 million per village.

In 2017, Rp 60 trillion will be disbursed and every village will receive Rp 800 million. "It will be increased next year for infrastructure and non-physical development in villages," Eko noted.

Eko claimed that village funds have helped stimulate economic growth and employment. Data showed that in 2016, village funds contributed 0.9 percent to gross domestic product (GDP), 0.04 percent to national economic growth and helped absorb 2.34 million workers.

This year, the Village, Development of Disadvantaged Region, and Transmigration Ministry has set four priority programs, which include the village flagship product program. "We expect every village to name their own flagship product to improve the economy and create employment opportunities," Eko said.

Eko said that another priority program is to establish a holding company for village-owned enterprises (BUMDes). In the past two years, the number of BUMDes continues to rise, from 1,022 units in 2014 to 18,466 units in 2017. State-owned lenders BNI, BRI, BTN and Bank Mandiri will become the shareholders of the holding company.

The Ministry will also build retention basins and sports facilities in villages.

ANTARA



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