Improvement of Village Productive Economy Through Village Funds Financing

Imran Rosman Hambali, Idris Yanto Niode


This study aims at finding out the actual condition of community empowerment activity and improvement of productive economic activities through village funds financing and gaining information on Village Funds management to increase productive economy in the village level. This is a descriptive study with a qualitative approach using Milles and Huberman as its method of analysis. This study finds that village funds financing is able to improve people’s welfare. This is evident from various achievement of the government of Bone Bolango regency. The success of this village funds in improving people’s welfare has made the central government to increase the village allocation funds for this regency annually. This village allocation fund is distributed through two channels: 1) direct disbursement for productive economic activities (grant), (2) fund disbursement for productive economic activity through Village Owned Enterprise (Hereinafter will be referred as BUMDes). To optimize this village funds management, several strategic steps such as: 1) increasing the capacity of village institution; 2). Establishment of Business Units as a joint working group needs to be done.


Village Fund Management Model, Productive Economy

Full Text:



. -------- Peraturan Menteri Dalam Negeri Nomor 37 Tahun 2007 Tentang Pedoman Pengelolaan Keuangan Desa, Pasal 18/Regulation of the Minister of Domestic Affairs of the Republic of Inodnesia No. 37 of 2007 on Guideline for Village Finance Management, Article 18, 2007. [2]. Bratakusumah, D. S., and S. Dadang, Otonomi Penyelenggaraan Pemerintah Daerah [Implementation of Local Government Autonomy], 2003. Jakarta: PT. Gramedia Pustaka Utama. [3]. Sutoro, E., Anom, S. P., Maizir, A., Suhirman., Prayitno H., Suryana, N., and M. Zaini, Dana Desa Untuk Desa Membangun Indonesia (Tanya Jawab Seputar Dana Desa)/Village Funds for Developing Indonesia from the Village, 2016. Jakarta: Kementerian Desa, Pembangunan Daerah Tertinggal, dan Transmigrasi Republik Indonesia/Ministry of Village, Development of Underdeveloped Regions, and Transmigration of the Republic of Indonesia. [4]. Republik Indonesia. 2014. Undang-Undang Nomor 6 Tahun 2014 Tentang Desa/Law No. 6 of 2014 on Village, Article 72 (1 d), and (4), op.cit, p. 41 [5]. Wahjudin, S., Perencanaan Desa Terpadu/Integrated Village Development, 2011. Banda Aceh: Reinforcement Action and Development.



  • There are currently no refbacks.

Copyright (c) 2019 Imran Rosman Hambali, Idris Yanto Niode

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Flag Counter

Published by : Association of International Business & Professional Management
Editorial Office:
Association of International Business and Professional Management (AIBPM) JL. Kahuripan No. 9 Hotel Sahid Montana, Malang, Indonesia
+62 341 366222

ISSN 2614-7432 (Print)
ISSN 2621-2862 (Online)

International Journal of Applied Business and International Management INDEXED: