The Corruption Eradication Commission (KPK) urges improvements to village fund management due to its vulnerability to corruption. Besides enhancing transparency, village fund management must also involve community participation in its oversight. This is in response to the exposure of village fund embezzlement involving Pamekasan Regent Achmad Syafii and the Head of the Pamekasan District Attorney's Office, Rudy Indra Prasetya.
The amount of village funds in the 2017 State Budget (APBN) increased to Rp 60 trillion, or Rp 800 million per village. The previous year, the village fund budget reached Rp 46.9 trillion, or Rp 644 million per village.
To stimulate rural economic growth and reduce the disparity with urban areas, the government launched the village fund program. Since the enactment of Law Number 6 of 2014 concerning villages, billions of rupiah have been channeled to villages throughout the country, sourced from village fund allocations. Unfortunately, much of these funds, intended to improve the welfare of rural communities, have been embezzled.
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