Sectors Prioritized for Village Fund Allocation

Village funds are part of the regional transfer (TKD), a budget item in the state budget (APBN) allocated and channeled for management by local governments. This definition is in accordance with Law Number 1 of 2022.

Village funds are channeled to support the financing of government administration, development, community empowerment, and community affairs.

A Kompas Research and Development (Litbang Kompas) poll shows that there are several sectors that the public considers should be prioritized for receiving village funds.

Infrastructure development, including roads, irrigation, bridges, and sanitation facilities (MCK), is considered the most important sector to receive village funds, as stated by the majority, or 49.6%, of respondents.

The next sector considered to need prioritization is cash assistance or social assistance, with a proportion of 24.3%.

"The impact of social safety nets has been significantly felt since the Covid-19 pandemic struck, when the wheels of the economy came to a standstill," wrote Litbang Kompas researchers in their report on Monday, February 17, 2025.

Then, 8.2% of respondents want village funds to prioritize health and education development, such as the construction of posyandu (community health centers), polindes (rural health clinics), early childhood education centers (PAUD), and kindergartens.

Meanwhile, 6.2% stated that village funds should focus on providing capital for the development of village-owned enterprises (BUMDes), and 5.1% for fertilizer and agricultural equipment assistance.

"Transparency and accountability in the management of village funds are crucial pillars to ensure that every rupiah disbursed can provide optimal development impact for the village community," wrote the Litbang Kompas researcher.

This Litbang Kompas survey involved 1,000 respondents from 38 provinces, randomly selected from the Litbang Kompas panel, in accordance with the population proportion in each province.

Data collection was conducted from January 4-10, 2025, through telephone interviews. The survey's margin of error is approximately 3.10%, with a 95% confidence level, under simple random sampling conditions.