Abstract

Ipik Permana, Sri Wulandari, Acep Komara.

Since 2015, the Indonesian government has been rolling a scheme of transfer called “village fund.” The fund was allocated from the state budget and targeted at providing financial support for the village government to develop their village, reduce poverty, and increase village prosperity. While the fund has been proven to be effective in reducing the poverty rate and developing thousands of facilities and infrastructures in villages, it is also vulnerable to being misused and corrupted. Between 2015-2018, there were 264 corruption cases – all of them have been in inkracht status. Although the number of corruption cases is relatively small compared to the number of villages in Indonesia, the corruption cases are worrisome because the spread of corruption also followed the distribution of the fund to the village level. The cases of village fund corruption are increasing. Therefore, any initiatives intended to prevent the fund from being corrupted should be taken – one of which is implementing good village governance.