The Village Fund Program in Indonesia: Measuring the Effectiveness and Alignment to Sustainable Development Goals

Paulina Permatasari, Assyifa Szami Ilman, Carol Ann Tilt, Dian Lestari, Saiful Islam, Rita Helbra Tenrini, Arif Budi Rahman, Agunan Paulus Samosir and Irwanda Wardhana
Additional contact information
Paulina Permatasari: Accounting Department, Faculty of Economics, Parahyangan Catholic University, Bandung 40141, Indonesia
Assyifa Szami Ilman: Institute of Economic and Social Research, Faculty of Economics and Business, University of Indonesia, Jakarta 10430, Indonesia
Carol Ann Tilt: UniSA Business School, University of South Australia, Adelaide 5000, Australia
Dian Lestari: Fiscal Policy Agency, Ministry of Finance Republic of Indonesia, Jakarta 10710, Indonesia
Saiful Islam: Fiscal Policy Agency, Ministry of Finance Republic of Indonesia, Jakarta 10710, Indonesia
Rita Helbra Tenrini: Fiscal Policy Agency, Ministry of Finance Republic of Indonesia, Jakarta 10710, Indonesia
Arif Budi Rahman: Fiscal Policy Agency, Ministry of Finance Republic of Indonesia, Jakarta 10710, Indonesia
Agunan Paulus Samosir: Fiscal Policy Agency, Ministry of Finance Republic of Indonesia, Jakarta 10710, Indonesia

Sustainability, 2021, vol. 13, issue 21, 1-30

Abstract: This study analyzes the Indonesian Village Fund (VF) Program by mapping each VF-related activity to all 17 SDGs (Sustainable Development Goals), and then determines an SDG-based VF allocation in 2018, 2019, and 2020. This study used data from all villages in Indonesia and is the most comprehensive study in Indonesia to address the knowledge gap between VF allocation and SDGs by analyzing the distribution of the use of the VF. The objectives of this paper are: (1) to provide the extent of VF usage to provide evidence on whether this utilization was aligned with the targeted SDGs, and (2) to provide information regarding village activities funded by the VF that were linked to each SDG. The results from this analysis can be used to encourage the Government to socialize and provide an understanding of SDGs to village leaders. Moreover, since Indonesia has developed Village SDGs, which are based on national SDG targets and localization of global SDGs to adapt to local culture as well as social and environmental conditions, it is recommended that other developing countries could formulate similar strategies to help achieve their national SDG targets and to develop rural areas in a more targeted way by prioritizing the most relevant issues. The study shares lessons learned from Indonesian experience in managing fiscal policy to more than 70,000 autonomous villages through the village fund program in the last five years.

Keywords: Indonesia; village fund; sustainable development goals; fiscal policy; village development (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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