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

Author

Listed:
  • 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)

  • Irwanda Wisnu Wardhana

    (Fiscal Policy Agency, Ministry of Finance Republic of Indonesia, Jakarta 10710, Indonesia)

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.

Suggested Citation

  • Paulina Permatasari & Assyifa Szami Ilman & Carol Ann Tilt & Dian Lestari & Saiful Islam & Rita Helbra Tenrini & Arif Budi Rahman & Agunan Paulus Samosir & Irwanda Wisnu Wardhana, 2021. "The Village Fund Program in Indonesia: Measuring the Effectiveness and Alignment to Sustainable Development Goals," Sustainability, MDPI, vol. 13(21), pages 1-30, November.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:21:p:12294-:d:674009
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    References listed on IDEAS

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    2. Ronaldo, Reza & Suryanto, Tulus, 2022. "Green finance and sustainability development goals in Indonesian Fund Village," Resources Policy, Elsevier, vol. 78(C).
    3. Ketut Eko Ari Saputro & Hasim & Lina Karlinasari & Irfan Syauqi Beik, 2023. "Evaluation of Sustainable Rural Tourism Development with an Integrated Approach Using MDS and ANP Methods: Case Study in Ciamis, West Java, Indonesia," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    4. Suandi & Entang Adhy Muhtar & Rd Ahmad Buchari & Darto, 2022. "The Evaluation of Village Fund Policy in Penukal Abab Lematang Ilir Regency (PALI), South Sumatera, Indonesia," Sustainability, MDPI, vol. 14(22), pages 1-15, November.
    5. Tyas Mutiara Basuki & Hunggul Yudono Setio Hadi Nugroho & Yonky Indrajaya & Irfan Budi Pramono & Nunung Puji Nugroho & Agung Budi Supangat & Dewi Retna Indrawati & Endang Savitri & Nining Wahyuningrum, 2022. "Improvement of Integrated Watershed Management in Indonesia for Mitigation and Adaptation to Climate Change: A Review," Sustainability, MDPI, vol. 14(16), pages 1-41, August.
    6. Beatriz Aibar-Guzmán & Cristina Aibar-Guzmán, 2023. "Editorial for the Special Issue “Business Strategies Concerning the Sustainable Development Goals and the SDG Compass”," Sustainability, MDPI, vol. 15(3), pages 1-5, January.

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