The Government Has Distributed Rp. 97.73 Billion Village Fund In January

Minister of Finance of the Republic of Indonesia, Sri Mulyani. (Photo: Ministry of Finance)

JAKARTA - The Minister of Finance has stipulated Regulation of the Minister of Finance Number 205 / PMK.07 / 2019 concerning Village Fund Management. It is hoped that the acceleration of the distribution of village funds can accelerate village development.

First, starting in 2020, the distribution of Village Funds is carried out by means of a channeling mechanism from the State General Treasury Account (RKUN) to the Regional General Treasury Account (RKUD) and the distribution from the RKUD to the Village Cash Account (RKD) is carried out on the same date and time.

With this mechanism, it is hoped that the Village Fund will be accepted by the village more quickly, the deposition of the Village Fund in the RKUD will not occur, and it will remain recorded in the district / city APBD.

"Village Funds are distributed based on channel-worthy villages so that the Regional Government can submit requests for Village Fund distribution to the KPPN every week after completing the required documents for Village Fund distribution," said Nufransa Wira Sakti, Head of the Communication and Information Services Bureau of the Ministry of Finance, Thursday, January 30.

Second, the distribution portion of the Village Fund underwent a change in which stages I, II, and III were disbursed by 40 percent, 40 percent and 20 percent respectively.

The 2020 Village Fund distribution requirements for each stage are as follows:

a. Phase I includes: Regent / Mayor Regulation concerning the determination of details of Village Funds, Perdes APBDesa, Power of Attorney for Transfer, and Cover Letter for Required Documents.

b. Phase II includes: Absorption Realization Report and Output Achievement for Fiscal Year 2019, Absorption Realization Report up to stage I 2020 with an average of at least 50 percent, and Average Output Achievement of at least 35 percent, and Cover Letter for Requirements Documents.

c. Phase III includes: Absorption Realization Report up to stage II of 2020 with an average of at least 90 percent and an average output achievement of at least 75 percent, Stunting Prevention Convergence Report, and Cover Letter of Requirements Documents.

As of Wednesday January 29, the State Treasury Service Office (KPPN) has distributed Village Funds of Rp. 97.73 billion. This acceleration still follows the requirements of the Village Fund distribution process, which is currently being given to villages that are eligible for channeling in Madiun Regency, Gorontalo Regency, West Manggarai Regency, Balangan Regency, Pringsewu Regency, East Kolaka Regency, Natuna Regency, and Bantaeng Regency.

The Village Fund Allocation for the 2020 Fiscal Year alone is IDR 72 trillion for 74,953 villages throughout Indonesia and will be disbursed by 169 KPPNs. With this value, the average village will receive a Village Fund of IDR 960.6 million or an increase from the 2019 average of IDR 933.9 million.

In 2020, the Government appreciates the Regional Government for having a good performance predicate in the distribution of Village Funds in 2019 through the provision of rewards in the form of distributing Village Funds in 2 stages with a portion of 60 percent for stage I and 40 percent for phase II.