Village Income Per Capita Doubles Since Implementation of Village Fund

President Jokowi delivers a directive at a Dissemination on the Priority Use of Village Fund 2019, in Surabaya, East Java, Saturday (2/2). (Photo by: Fitri/PR Division)

Indonesia’s village income per capita has doubled since the launching of the Village Fund four years ago, according to President Joko “Jokowi” Widodo as quoted from report of the Minister of Village, Development of Underdeveloped Regions, and Transmigration.

“It is such a huge leap. The World Bank has acknowledged the success of Village Fund which has been implemented in the past four years,” President Jokowi said in a remarks at a Dissemination on the Priority Use of Village Fund 2019 for East Java Province, at the DBL Arena, Surabaya, on Saturday (2/2).

The President believes that the increase of village income per capita mainly contributed by the Village Fund. Development of village infrastructures also showed a significant increase since the implementation of Village Fund.

According to the President, since 2015, a significant amount of Village Fund has been disbursed around the country, in which East Java Province received the Fund amounting to Rp17 trillion. In 2015, the Government allocated Rp20.7 trillion for Village Fund, the amount increased to Rp46.9 trillion in 2016, Rp60 trillion in 2017 and 2018, and Rp70 trillion this year.

In total, the Government has disbursed Rp187 trillion of funds to the villages around Indonesia until December 2018. The budget disbursed will be increased to Rp257 trillion by the end of 2019, he added.

By allocating significant amount of Village Fund, the Government expects more money to be circulated within villages. As the budget realization increases, more money will be circulated within the villages and it will lead to an increase of people’s welfare.

“That is one economic theory,” President Jokowi said while appreciating Village Fund realization in East Java Province which stood at 99.6 percent of Rp19 trillion of budget allocated by the Government.

Therefore, President Jokowi asserted that the Village Fund must be increased in 2020, 2021, 2022, and the following years. “Because village is the foundation and base of development of the nation,” the President firmly said.

The Head of State went on to say that until December 2018, 191,000 km of village roads, 24, 000 Integrated Health Service Posts (Posyandu), and 50,000 Early Childhood Education Centers (PAUD) have been developed by using the Fund.

President Jokowi, who is accompanied by First Lady Ibu Iriana Joko Widodo on that occasion, told the people that in using the Village Fund for developing infrastructures, they must procure construction materials from the village. If the materials are not available in that village, they can get them from the subdistricts.

Even if the price of goods in village is higher, the President added, it shouldn’t be a problem since the money will be spent for the village as well. President Jokowi also reminded the people that the programs should hire local people from the village. If they do not have enough workers from one village, hire those from neighboring villages.

“It aims to increase the circulation of money within the village. We hope that the Village Fund in which the amount will continue to increase, should not be spent in the cities, particularly Jakarta,” President Jokowi concluded.

Also attending the event were, among others, Minister of Village, Development of Underdeveloped Regions and Transmigration Eko Sanjojo, Cabinet Secretary Pramono Anung, and Governor of East Java Soekarwo. (GUN/FID/ES)

Translated by : Rany Anjany Subachrum
Edited by : Yuyu Mulyani