CC BY
12
https://doi.org/10.29013/EJEMS-21-53-62
Joko Mulyono, Hardi Warsono, Sri Puryono, Retno Sunu Astuti, Doctoral Program of Public Administration Faculty of Social and Political Sciences Diponegoro University, Semarang, Indonesia E-mail: [email protected]
IMPLEMENTATION OF VILLAGE FUNDS DISTRIBUTION: A PARADOX OR THE REGIONAL GOVERNMENT'S REGULATION OF CENTRAL JAVA PROVINCE
Abstract. This research aims to provide the management and system of village funds based on local government regulations that refers to (Pemerintah Republik Indonesia, 2014 b). The new hope and the essence of the main purpose of village development in the regulation aims to realize a strong, independent, advanced, democratic and prosperous village without losing its identity. The program aims to empower rural communities through the stimulation programs that are able to generate resources, opportunities, and knowledge as well as community skills to increase capacity in determining their future. In this study, the authors used qualitative research methods. This research is a type of descriptive research that contains a picture of situations and events, or includes ongoing processes and the influences of existing phenomena. In this study, informants as a source of information to obtain data and conduct interviews, in addition to documents that can support this research are policy actors (stakeholders) and village activists that have knowledge about the priority of using village funds used to empower communities in Central Java Province. The results show that the transfer of village funds in central Java Province directed to improve the welfare of rural communities through several fields, namely government, development and empowerment of village communities. The allocation of village funds is not only for the construction of physical infrastructure or physical development. The transfer of village funds is used for the field of community empowerment to community. So that village funds can be implemented thoroughly in, various fields that include the governments field, development, community empowerment and community development.
Keywords: Village Fund; Village Community; Central Java Province; Community Empowerment; and Village Activist.
Introduction
Based on the history of the village as outlined in the rationale explanation (Pemerintah Republik Indonesia, 2014 b) mentioned that juridical village whose existence has been recognized before the Uni-
tary State of Republic of Indonesia was formed. This shows the position and village's role is increasingly important and strategic in the system of governance in Indonesia. The Ministry ofVillages, Development of Disadvantaged Regions and Transmigrations of
Republic of Indonesia abbreviated as (Kemendesa PDTT) in its book New Village Regulation, Ideas, Mission and Spirit of Village Law (2015) outlines the direction and path of change to the new village has been outlined by the Village Law. The redistribution of State money (from the state budget and Regional Expenditure Budget) to the village, which is the right of the village, is a critical and political issue accompanying the hustle and bustle of the new government under the leadership of President Joko Widodo and Muhammad Yusuf Kalla during the period 2014-2019.
According to (Manan [10]) stated that the Village Law ensures space and money for the village. Space is called as political space, which includes the space of autonomy / independence (village power) and democratic space (people's power). The autonomy space (independence) or village power includes authority, decisions, initiatives, capabilities and self-management. The democratic space asserts that power is not only a monopoly of the village head but also a people's space incarnated in openness, accountability, responsiveness, representation and deliberation. The autonomy space and democratic space cannot be implemented without the presence of community participation, it is difficult to realize if the community does not have the power and empowerment of the community is impossible to be present in the implementation of village government without the empowerment of the community itself.
Empowerment had the meaning of generating people's resources, opportunities, knowledge and skills to increase capacity in determining their future (Hardina [6]). The main concept contained in empowerment is how to provide a broad opportunity for the community to determine for itself the direction of life in its community. Empowerment puts pressure on autonomous decision-making of a community group. The application of democracy aspects and participation with a focal point on locality will be the foundation for efforts to strengthen local potential. On this principle, community empowerment
is also focused on strengthening individual community members and their institutions. The main approach in this concept of empowerment is to place society not only as an object but also as a subject.
The context of empowerment, actually contained elements of participation, namely how the community is involved in the development process, and the right to benefit from these results of development. Empowerment attaches importance to the recognition of the subject's ability or power possessed by the object. In outline, this process observes the importance of this process seeing the importance of switching individuals who were previously objects to be (Karlina, Rusli, Suryanto, & Candradewini [8]). In addition, according to (Pemerintah Republik Indonesia, 2014b) on village mention that the definition of Village Community Empowerment is an effort to develop community independence and welfare by increasing knowledge, attitudes, skills, behavior, abilities, awareness, and utilizing resources through the determination ofpolicies, programs, activities and assistance. These are in accordance with the essence of the problems and priorities of village community necessity.
Village fund as one of implementation amendment based on (Pemerintah Republik Indonesia, 2014 b) about village Budgeted by the Government annually in Regional Expenditure Budget which is part of the central transfer fund policy to regions and villages. Based on data on budget, realization, utilization and impact ofVillage Funds during 2015-2019 classify four contradictions of priority provisions for the use ofVillage Funds. The first contradiction: The Village Fund is only to finance development and empowerment, thus ignoring the government and community development. In fact, based on the description above shows that the largest Village Fund is used for development while the three main obligations that must be funded using village funds have not received the attention properly.
Second contradiction: priority (Pemerintah Republik Indonesia, 2014 a) about Village Funds
sourced from Regional Expenditure Budget colliding and contradicting village financial management arrangements (RI, 2014) on implementation regulations (Pemerintah Republik Indonesia, 2014 b) about village. In the regulation confirms that all sources ofvillage revenue are included in the Village of Regional Expenditure Budget, divided into 30% for operational expenditure (including the village government's fixed income, allowances, incentives, village government operations, BPD, and so on), while 70% is for public spending government, development, empowerment, and community. While according to (Pemerintah Republik Indonesia, 2014 a) this way directing the Village Fund only goes to the development and empowerment post in the composition of 70%. In practice in many regions and villages, where the Village Funds Allocation (ADD) is relatively small, the contradiction between the two Government Regulations causes difficulties and deviations.
The third contradiction, further contradictions are created by the Regulation of the Minister of Finance and Ministry ofVillages, Development of Disadvantaged Regions, and Transmigration related to the use of village funds as well as regulations on the priority of the use ofvillage funds. According to (Per-aturan Menteri Nomor 14 Tahun 2015, 2015) And its successor, the priority is still open as direction and signpost, where the village still able to determine local priorities and be decided by village deliberation. However, the Regulation of the Minister of Finance PMK No. 247 / PMK.07 / 2015 on Procedures for Allocating, Distributing, Using, Monitoring and Evaluation ofVillage Funds adds to a clause that the priorities determined by the village should obtain the approval of the Regent / Mayor. The fourth contradiction, the priority of the use ofvillage funds top down by the government is contrary to the provisions of the Village Law on village spending priority decisions by village deliberations. In accordance with the principles of recognition, subsidiarity, and democracy, as well as hybrid villages, the important things in the
implementation of the village are decided together through village deliberation.
Literature review
To explain the problem of this study, researchers explore theories that are able to support and combine explanations about the paradoxical theme of using village funds. After discussing these theories then presented and observed previous studies related to village funds as reference material and comparison with the substance of the research that will carried out by researchers. These Theories, understandings, concepts, and previous research were used as academic references to analyze the Use ofVillage Funds in Community Empowerment in Central Java Province.
Paradox's Theory
Paradoxes mean statements that seem to contradict common opinion or truth, but in reality contain truth. Based on (Merriam Webster, 2016) paradox is defined as the principle of contradiction to accept an idea or opinion. Paradoxes make us think of something outside the common custom or outside the prevailing general view. Paradoxes highlight everything that is opposite (light-dark, masculine-feminine, life-dead), which is seen as interdependent, fluid, and natural (W. K. Smith & Tracey [20]). According to (Cunha & Putnam, 2019): "A key characteristic in paradoxes is the simultaneous presence of conflicting, even mutually exclusive elements." According to (W. Smith & Lewis [21]), Paradox is also called contradiction means to contain contradictions caused by paradox and/or irony.
Contradictions/Paradoxes according to the theory from (Hargrave & Van de Ven [7]) was a central fact about everything that exists. These contradictions gave birth to a dialectical law. The law of dialectics asserts that contradiction is at the core of everything, both in nature and in human life. From some of the descriptions of the definition above, researchers define paradoxes as contradictions, opposites,
opposites between expectations and implementation. In the context of research on the use of village funds in community empowerment, this paradox is
paradoxically defined as something that does not fit between theories, concepts, goals and regulations in its implementation.
Public Administration Theory
The science of state / public administration is a science that studies the entire cooperation activities carried out by humans to achieve the goals that have been set. This cooperation activity is general and has existed since ancient times until now. This cooperation is two nature, namely cooperation to achieve personal goals (private) and cooperation to achieve public goals (society) (Caiden [2]). Therefore, the science of administration that is private is called private / commercial administration, and community-oriented is called public / state administration. Therefore, all concepts, theories and systems of administrative analysis used are also in commercial administration or state administration.
The purpose of the administrative implementation science aims to achieve effective and efficient goals. Then the activities carried out must be in accordance with what has been planned and have the best comparison between input and output. The study of administrative science is broader than other social science studies, because administrative science is a science that studies cooperation, where the cooperation is carried out by all levels of society in every activity it does every day. This extensive study has a logical consequence, which makes it difficult for us to set precise boundaries about what exactly explain in administration science (Wright [24]).
Administration is defined as a process or activity, business in the scope of government or state administration where experts give various statements as follows: (Siagian [19]) explained that Administration is the entire process of cooperation between two or more people based on a particular rationality to achieve a specific or predetermined goal. The second category group based on theory from (Raczynska [16]), where they argued that administration is a neat and systematic written business activity carried out by humans to make relations between human
beings in the form of agreements, and others. The third category group based on (Bryson & George [1]) where these experts argued that administration is an activity carried out by government agencies / State either low or high levels to achieve the goals of each of these government institutions.
The state administration has no identity and its uniqueness in limiting some of its larger concepts. It is one of a problem in the scope of administrative science. Although there were no universal principles in the science of administration (Thompson [23]) gave a strength reason to choose administrative science as the paradigm of commercial administration i.e. all organizations and managerial methodologies in general have certain patterns, characteristics and weaknesses. In this paradigm, the principles of management that were once popular are developed scientifically and deeply. The focus is organizational behavior, management analysis, and more.
Public Management Theory
Public management or also be called government management in general is an effort by the government in meeting public needs by using available facilities and infrastructure. The element of management is currently an important element in the organization, both organizations in the private sector and in the public sector such as government organizations. Management in the public sector appointed from private sector management does not make the orientation of objectives and implementation in public sector organizations similarly as the private sector. In the approach of managerial, strategic functions such as strategy formulation, strategic planning, and program making are things that should be execute by public managers. Public sector managerial oriented towards the fulfillment of objectives, the achievement of the vision and mission of organizations whose nature is long-term fulfillment (Raczkowski [15]).
To realize change towards a public management system that is oriented to the public interest and more flexible, (Teisman & Klijn 2008) identified at least three management functions
that generally apply in both the public and private sectors, namely:
1. Strategy functions, including: a) Setting organizational goals and priorities; b) creating an operational plan to achieve the objectives
2. Internal component management functions, including: a) Organizing and staffing; b) directing and management of human resources; c) performance control.
3. External constituent management functions, including: a) Relationship with external units of the organization; b) Relationships with other organizations; c) Relationship with the press and public.
Village Theory and Village Government
Etymologically the word "village" comes from Sanskrit, deca that means homeland, land of origin, or land of birth. From a geographical perspective, village is defined as "a group of houses or shops in country area, smaller than town". Village is a unitary legal community that has the authority to take care of its own household based on the right of origin and customs recognized by the National Government and located in the Regency area. In the Great Dictionary of The Indonesian Language, a village is an area inhabited by a number of families that have their own system of government (headed by a village chief) or the village is a group of houses outside the city that is a unity (Dilahur [4]).
Moreover (Dilahur [4]) explained that Village in everyday life or in general is often termed as a village, which is an area that is located far from the hustle of the city, which is inhabited by groups of people whose livelihoods are mostly farmers. Administratively, a village is a region consisting of one or more hamlets that are combined to become a stand-alone area or govern their own household, which in the implementation of government we know by the term autonomy. In the implementation of government in the village, the authority to organize government affairs in the village is handed over to the village government, based on village regulations established by the village head together with the Village Consulta-
tive Agency (BPD) by involving the village community elements.
The definition of village according to (Pemerin-tah Republik Indonesia, 2014 b) stated Traditional villages and villages or what is called by other names, hereinafter referred to as Villages. A unitary legal community has territorial boundaries that are authorized to regulate and manage government affairs, the interests of local communities based on community initiatives, origin rights as well as traditional rights that are recognized and respected in the system of government of the Unitary State of the Republic of Indonesia. The regulation is expected to change many things in life of the Village Government and The Village Community is a regulation that regulates the source of village's income.
These sources of income, especially transfer funds, namely Village Funds (DD), Villag e Fund Allocation (ADD) and Regional Tax Revenue Sharing and Regional Levy (PDRD) are the recognition role of the Central Government to the existence of villages. These are executed by providing financing sources and this in particular village funds will be studied in more detail in the perspective implementation of priority policies for the use of village funds in the field of village community empowerment in Central Java Province. Villages in Indonesian state system are regulated in the amendment 1945 Constitution, at the same time showing the relationship between the State, village and residents is a very basic thing in the discussion of the Law on Villages. The initial construction that appeared in the discussion of the academic text prepared by the Directorate General ofVillage Community Development of the Ministry of Home Affairs in 2007 that the village is part of the area because decentralization only stops in districts / cities and villages receive the delegation of authority from districts / cities. Although the principle of recognition has been outlined in the academic text as a basis for placing a different village position according to its district.
Research method
In this study, the authors used descriptive research methods intended for exploration and clarification of phenomena or social realities. In answering the previous study, the aspect of "depth" became an important consideration in choosing and implementing research strategies. Referring to this problem, the right type of research is qualitative research. This research is a type of descriptive research that contains a picture of situations and events, or includes ongoing processes and the effects of existing phenomena (Hale [5]).
The method used is a qualitative descriptive method intended as a problem-solving procedure that is investigated by describing the state of the subject or object of the research (institution, society etc.) in the present day based on facts that appear or as a reality. To describe the facts at an early stage is to attempt to present the symptoms in full in the aspects investigated, so that the circumstances or conditions are clear (Salaria [18]).
The research locations are villages in Central Java Province by sampling. The location of the village selected as the specific location of the study was selected based on the highest and lowest grades of Building Village Index (IDM). After determined the location based on IDM of the highest and lowest sub-district, then from the sub-district selected again 4 (four) villages that can represent the sub-district, which has the category of Independent, Developed, Developing, and Lagging combined with data on the Number of Poverty People (JPM) in Central Java Province. In this study, informants that we can use as a source of information to obtain data and conduct interviews, in addition to documents that can support this research are policy actors (stakeholders) and village activists that have knowledge about the priority of using village funds used to empower communities in Central Java Province. While the data collection technique done through observation, interview, questionnaire, and documentation as well as a combination of these fourth aspects.
Result and discussion
Based on data from Rural Community Empowerment Office, Population, and Civil Records of Central Java Province show that village funds transferred in 2015 amounted to 2.23 trillion Rupiah in a year or on average 285.43 million Rupiah per village. Then in 2019, experienced significant increases amount 7.89 trillion Rupiah or 1.009 billion Rupiah in a year. The amount ofvillage funds transfer in central Java Province is directed to improve the welfare of rural communities through several fields, namely government, development, empowerment ofvillage communities and communities. In addition, village funds are transferred to Central Java Province as an allocation ofvillage governments to increase the village building index.
The allocation of village funds is not only for the construction of physical infrastructure or physical development. In addition, the transfer of village funds is used for the field of community empowerment to community. So that village funds can be implemented thoroughly in various fields. The use of villages includes the field of government, development, community empowerment and community. The categories ofvillages are dividing into four, namely villages left behind, developing villages, advanced villages and independent villages. The village category is measured based on the Building Village Index. The higher index of villages building is the more categories of villages concerned.
Central Java Province during the period 20152019 has village funds with a total of 26.6 Trillion Rupiah. With the absorption is amount 98% to 100% annually. This condition shows that Central Java Province can use funds optimally. The use of village funds during the period 2015-2019 emphasizes two things, namely supporting the economic activity of the community and supporting the life's quality of the village community. In detail, supporting economic activities in the community is done through building village roads, building bridges, building markets, building Village-Owned Enterprises, building boat
moorings, building convex, building irrigation and building land anchoring. Then in detail supporting the quality of life of the community is done with several things, among others: the construction of sports facilities, the provision of clean water, the development of public rest room, the development of Village Maternity Clinic, drainage development, the development of Early Childhood Education and Devel-
opment, the development of Integrated Healthcare Centre and wells.
The majority dominance of the use of village funds is physical development. While village funds not only stop at physical development, but also need community empowerment. The description of village fund distribution can be illustrated in the table below.
No. Sub-Districts Villages YEARS
2015 2016 2017 2018 2019
1. Cilacap 284 - - 1.416.881.900 1.699.055.200 525.965.900
2. Banyumas 331 - - 2.427.485.013 2.142.324.601 4.392.816.042
3. Purbalingga 239 - - 1.143.413.250 1.826.459.900 2.732.624.273
4. Banjarnegara 278 - - 12.987.500 966.976.554 658.576.300
5. Kebumen 460 - - 3.767.664.010 1.632.487.350 1.098.019.900
6. Purwerejo 494 - - 705.876.790 2.532.526.000 1.721.252.920
7. Wonosobo 265 - - 574.579.000 349.900.000 1.051.623.250
8. Magelang 372 - - 2.443.912.250 3.584.842.713 1.678.989.494
9. Boyolali 267 - - 1.112.869.266 987.989.581 3.151.055.318
10. Klaten 401 - - 4.616.859.350 3.639.503.979 2.206.221.146
11. Sukoharjo 167 - - 50.000.000 213.391.500 539.336.900
12. Wonogiri 294 - - 931.686.000 1.398.776.013 2.308.417.604
13. Karanganyar 177 - - 1.439.262.400 868.485.500 224.991.700
14. Sragen 208 - - 2.072.753.116 1.224.773.500 431.068.200
15. Grobogan 280 - - 457.880.000 1.357.923.400 3.072.010.500
16. Blora 295 - - 320.293.000 2.081.623.400 34.500.000
17. Rembang 294 - - 1.165.836.050 864.215.000 1.136.685.900
18. Pati 406 - - 1.872.251.700 9.672.320.840 14.705.389.290
19. Kudus 132 - - 1.003.805.861 194.242.000 29.736.250
20. Jepara 195 - - 813.589.000 1.040.169.933 327.628.697
21. Demak 249 - - 872.679.800 250.392.300 141.654.000
22. Semarang 235 - - 503.502.000 1.073.118.300 327.929.000
23. Temanggung 289 - - 2.687.705.670 4.365.596.847 2.495.908.360
24. Kendal 286 - - 1.555.326.831 692.470.025 321.565.500
25. Batang 248 - - 605.593.235 538.515.876 190.030.200
26. Pekalongan 285 - - 65.190.000 1.555.949.800 977.661.736
27. Pemalang 222 - - 1.537.319.591 5.939.000.000 1.239.524.600
28. Tegal 287 - - 1.982.206.251 1.017.141.716 308.597.932
29. Brebes 297 - - 1.416.881.900 1.295.439.300 632.248.500
TOTAL 7.809 - 39.576.290.734 55.005.611.128 48.662.029.412
Source: Regional Guidance Consultant IV of Central Java 2021
Table 1.- Budget for Improving the Economic Welfare of Rural Communities
The use of village funds is aimed at improving the welfare of the community. The term empowerment in general as an effort to fulfill the needs of individuals, groups and the wider community so that they have the ability to make choices and control their environment in order to fulfill their desires, including their accessibility, to work-related resources, social activities and others. In line with that, empowerment can be interpreted as an effort to improve the ability of the community (Poverty, Marginalized) to express their opinions and necessity, choice, participate, negotiate, influence and manage the institutions of their society responsibly for the betterment of their lives.
The improvement is implemented through the policy of using village funds, several things including as follows:
1. Economic improvement, especially food;
2. Improvement of social welfare (education and health);
3. Independence from all forms of oppression;
4. Guaranteed security;
5. Guaranteed human rights free from fear and worry.
On the other hand, empowerment is a way for people, communities, and organizations, directed to control or rule over their lives (Mamu, Rakhmat, Yu-nus & Allorante [9]). Community empowerment is an effort to improve the dignity and layers of society that in the present condition are unable to escape in the device of poverty and backwardness. The use of village funds for the development of rural communities in Central Java Province is described and analyzed through three factors, namely creating an atmosphere (Enabling), increasing capacity (Empowerment), and protecting the community interests (Protecting).
The success ofvillage fund management is largely determined by how the village strengthens the village community and democratic institutions in the village first. In this case, the village community should no longer rely solely on the role of certain
institutions, such as Village Management Agency abbreviated as BPD, but on the development of overall community participation and collective supervision of the village community to ensure the accountable and legitimate management of the village (widely accepted by all villagers). Some of them observe the need to change the approach so that it really leads to democratization and education of the village.
This fact goes hand in hand with the allocation of billions rupiah funds that enter the village so far is still very small which is directed at its use for community empowerment, strengthening village capacity, institutions and village communities, but instead more are allocated for infrastructure development activities. The lack of use of funds for community empowerment and on the other hand there is a dominance realization of the use of funds in infrastructure is actually not in accordance with the government's own policy that outlines the use of village funds prioritized in the field of development and community empowerment.
The development implementation in the village requires (needs to be accompanied) with the construction of village communities and the empowerment ofvillage communities. Thus, here the position of central democracy and the process becomes appreciated because democracy becomes the basis, values, system, and governance so that it is expected to encourage the formation of participatory democracy and communal work. In the agenda of democracy and village autonomy the problem is how we can regrow and connect the confidence and courage of the villagers to express aspirations for their interests that are carried out simultaneously with efforts to encourage people to independently start designing, deciding, and implementing as well as fulfilling everything that is considered as their needs and interests. The goal can only be achieved through democratic principles that emphasize the importance aspects of "collectivity" in the decision-making process, in addition to the element of "settlement" as the basis for the decision of a policy choice.
Furthermore, no less important is the involvement of the community in village development in Central Java Province through communal work activities. Development execute through community participation is one of the efforts to empower the potential community in planning development related to the potential oflocal resources based on deliberation studies. It is namely increasing aspirations in the form of real wants and needs around community, increasing motivation and participation of community groups in the development process, and increasing the sense of belonging in community groups to the program activities that have been prepared.
Substantively, community participation covers three things. First, Voice: Citizens have the right and space to express their voice in the village program process. The government, instead, accommodates every voice that develops in society, which is then used as a basis for planning. Second, access, that is, every citizen has the opportunity to access or influence the planning of village government programs. Third, control, that is, every citizen or elements of the community has the opportunity and right to exercise supervision (control) on the implementation of village government programs.
Conclusion
Based on the research results above, it shows that the Disbursement of Village Funds 2015-2019 with significant results, both in terms of allocation mechanisms and their impact. In 2018, the government began to fix the allocation ofVillage Funds with improvements to the proportion of funds divided equally. It is known as basic allocations, and funds divided based on a formula, as known as Formula Allocation, in the following ways. They are classified into 1) giving affir-
mations to disadvantaged and very lagging villages that still have a high number of poverty people; 2) giving a greater focus on poverty alleviation and inequality, namely by adjusting the variable weight ofthe number of poverty community and the area of its region.
The target of the use of village funds becomes important in protecting the interests of the community (Protecting). Village Funds are expected to be able to improve the welfare of the community through various fields such as development, community empowerment to community activities. Villages in particular in Central Java Province are expected to be able to innovate village programs. Especially in the field of community empowerment, do not let the use of village funds only as a development project. Empowerment program becomes a concern of the village government so that it can continue to stimulate community skilled and being independent. In addition, the next term has an impact on the economy of the village community.
The largest proportion in Regional Avenue Budget comes from the Village Fund. The proportion increased sharply from 44.23 percent (2015) to 67.20 percent (2019) of State Revenue Budget. The number will potentially continue to increase considering that the Village Fund budget has not reached 10 percent of the state budget. This condition illustrates the central government is late in responding to the village. While the village geopolitically having a strategic power in Indonesia. Local-based development and empowerment if it can be optimized through the Village Fund, over time will strengthen Political Ideology of Socio-Cultural Economy of Defense and Security conditions macro in Indonesia, although starting from the micro level of the village.
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