Rural poverty rates are significantly higher than urban rates. Data shows that the percentage of impoverished rural residents in March 2017 reached 13.93 percent. This figure is considerably higher than the urban poverty rate of 7.72 percent. The rural poverty rate also surpasses the national poverty rate, which stood at 10.64 percent in March 2017.
Since 2015, the government has disbursed trillions of rupiah in Village Funds to address the disparity between rural and urban populations. In 2015, the government allocated Rp 20 trillion, Rp 47 trillion in 2016, Rp 60 trillion in 2017, and another Rp 60 trillion was allocated for 2018.
However, a significant portion of the village funds allocated to regions intended for village development has been misused for personal or group gain, resulting in numerous local officials being implicated in village fund corruption cases. Inadequate systems and resources, coupled with insufficient oversight, have led to significant misallocation of Village Funds.
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