Village Fund Should Only be Circulated in the Villages, President Jokowi Instructs

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 14 Mei 2018
Category: News
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: President Jokowi greets village heads attending the 2018 National Coordination Meeting on Administration of Village, Central and Regional Governments, at D-2 Hall, JI-EXPO, Kemayoran, Jakarta, Monday (14/5) (Photo: JAY/PR)

: President Jokowi greets village heads attending the 2018 National Coordination Meeting on Administration of Village, Central and Regional Governments, at D-2 Hall, JI-EXPO, Kemayoran, Jakarta, Monday (14/5) (Photo: JAY/PR)

Village fund amounting to Rp60 trillion for 2018 Fiscal Year or a total of Rp187 trillion which is allocated since 2015 Fiscal Year should be used and circulated in the villages, subdistricts, and regencies.

The statement was enunciated by President “Jokowi” Widodo in the 2018 National Coordination Meeting on Administration of Village, Central and Regional Governments, at Hall D-2, JI-Expo Kemayoran, Central Jakarta, on Monday (14/5).

“Learning from the past, the fund will be brought back to Jakarta after it was already received by the regional government at village level. Now, we hope that the money, which amounted to Rp187 trillion and will continue to increase, should not be spent in Jakarta,” the President added.

According to President Jokowi, it is possible to do that if they procure construction materials from the village during development projects, such as roads, retention basins (embung), and irrigations. If the materials are not available in that village, they can get them from the subdistricts. Thus, the money will only circulate in that area.

“They can also buy cements in the village. There are also masonry shops that sell cement in the subdistricts, right? Buy there, so the money will be only circulated in those shops,” the President said.

The Head of State also asserted that local workers should be involved in the projects. These projects should use 100 percent local workers from the villages.

“If it is realized, the Rp187 trillion will be circulated in the villages, economic development in the village will also increase, as well as the consumption of the people.

“In constructing roads, we must not buy rocks and stones in the cities because people receiving the money will be those living in the cities. You should understand that such economic theory,” President Jokowi added.

Also on that occasion, President Jokowi instructed Minister of Village, Development of Disadvantaged Regions and Transmigration Eko Putro Sandjojo to implement cash labor-intensive program in development projects funded by Village Fund. The President expressed his hope that the programs will hire local people, and they will be paid daily or weekly, so it will open more job opportunities.

“Just imagine if there are 100 workers employed in one village, that means the projects will absorb 7.4 million people across the country. Not to mention if it needs 200 workers, that means 14 million people will have jobs,” President Jokowi explained adding that if Village Fund is used effectively, it will improve the economy of the village, open more job opportunities, and increase economic growth.

Also attending the event were representatives of village heads across the country, local village counselors, representatives of village’s consultative body, echelon I officials of Home Affairs Ministry, and head of Social Security Provider Body (BPJS).

Accompanying President Jokowi on that occasion were Minister of Home Affairs Tjahjo Kumolo, Minister of Village, Development of  Disadvantaged Regions and Transmigration Eko Putro Sandjojo, and Cabinet Secretary Pramono Anung. (FID/JAY/ES) (RAS/MMB/Naster)

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