Village Bill Working Committee Agrees To Increase Village Funds By 20 Percent

The Atmosphere of the Working Committee Meeting (Panja) of the Second Amendment Bill (RUU) on Law Number 6 of 2014 concerning Villages in the Legislative Meeting Room of the DPR RI, Jakarta, Monday (3/7/2023). BETWEEN

JAKARTA - The Working Committee Meeting (Panja) of the Draft Law (RUU) for the Second Amendment to Law Number 6 of 2014 concerning Villages of the Legislation Body (Baleg) of the DPR RI approved an increase in village funds by 20 percent of regional transfer funds. "We made a decision, most (fractions) agreed (increased village funds) of 20 percent," said Chairman of the Indonesian House of Representatives Baleg Supratman Andi Agtas at the Village Law Revision Working Meeting in the Baleg Meeting Room of the DPR, Jakarta, as reported by Antara, Monday, July 3. In 2023, he said, the allocation of regional transfer funds was around Rp800 trillion, then divided into 74,000 villages, so the average village funds obtained by each village received Rp1.1 billion to Rp1.3 billion per year. From this explanation, only 8.3 percent of regional transfer funds were allocated for village funds. Supratman assessed that the increase in the amount of village funds by 20 percent would result in the parliament's desire to provide village funds to each village of around Rp. 2 billion. "Our state budget since the republic was founded has never decreased so that it becomes a better parameter for our economy," he said. Prior to making the decision, each faction expressed their opinion. Four factions proposed an increase in the allocation of village funds from regional transfer funds, namely the Gerindra Party faction, the Democratic Party faction, the PKS faction, and the PPP faction. The PKB faction proposed an increase in village funds by 30 percent. Meanwhile, the PDI-P factions, the Golkar faction, and the PAN faction assessed that the amount of village funds must be adjusted to the state's financial capacity so that it cannot be based on the percentage amount. Member of the Legislative Council of the Republic of Indonesia from the PDI-P faction, Johan Budi, believes that the Village Bill Working Committee must look at the situation and state financial conditions to propose the amount of village funds. "It could be because you want a legislative election and then propose (increased village funds) 15 percent, 20 percent, 50 percent. However, you have to look at the condition (financial) of the state, you have to discuss it with the government. Currently, village funds are 8.3 percent of regional transfer funds. If it increases by 15 percent, village funds can be IDR 2 billion to IDR 4 billion," he said. Johan emphasized that the amount of increase in village funds really depends on the government's ability.

He reminded that future economic challenges are very large, especially in global situations and conditions that affect countries.