THE SHIFTING PARADIGM ON THE VILLAGE DEVELOPMENT IN INDONESIAAnwar SanusiGeneral Secretary of Ministry of Village, Development of Disadvantaged Areas and Transmigration

The Village in National Development Context

MAP OF VILLAGES IN EACH PROVINCE(According to Permendagri No.39/2015)

Aceh 6474

Sumut 5389

Sumbar

880

Bengkulu 1341

Kepri 275

Jambi1398

Riau 1592

Babel 309

Sumsel 2817

Lampung 2435

Banten 1238

Jateng 7809

Jabar 5319

DIY 392

Jatim7723

Bali634

NTB995

NTT2931

Kalbar1908

Kalteng1434

Kalsel1864

Kaltim833

Kaltara 447

Gorontalo657

Sulut1491

Sulteng1838

Sulbar576

Sulsel2253

Sultra1820

Malut1064

Maluku1191

Papua5090

PaBar1628

Number of Villages74.093

CONDITIONS OF VILLAGES IN EACH PROVINCE #2

NO PROVINCE DISADVANTAGED VILLAGES

DEVELOPING VILLAGES

DEVELOPED VILLAGES

1 ACEH 1.997 4.391 862 SUMUT 2.002 3.299 883 SUMBAR 56 739 854 RIAU 281 1.271 405 JAMBI 191 1.176 316 SUMSEL 656 2.134 277 BENGKULU 344 992 58 LAMPUNG 348 2.010 779 KEP.BABEL 12 288 9

10 KEP. RIAU 95 176 411 JAWA

BARAT 97 4.621 60112 JAWA

TENGAH 123 7.021 66513 D.I.Y 266 12614 JAWA

TIMUR 207 6.823 69315 BANTEN 158 1.021 5916 BALI 6 530 10017 NTB 36 917 42

NO PROVINCE DISADVANTAGED VILLAGES

DEVELOPING VILLAGES

DEVELOPED VILLAGES

18 NTT 1.546 1.402 219 KALBAR 965 920 2320 KALTENG 586 838 1021 KALSEL 390 1.457 1722 KALTIM 193 619 2123 KALUT 318 126 324 SULUT 275 1.203 1225 SULTENG 500 1.330 926 SULSEL 285 1.936 3227 SULTRA 685 1.133 228 GORONTAL

O 103 545 929 SULBAR 215 359 230 MALUKU 736 441 1431 MALUKU

UTARA 630 429 432 PAPUA

BARAT 1.441 186 133 P A P U A 4.698 415 5

NASIONAL 20.175 51.014 2.904

MAP OF VILLAGES’ CONDITIONS ACCORDING TO VILLAGE DEVELOPING INDEX (IPD)IN THE YEAR OF 2014 #3

Disadvantaged Rural AreasDeveloping Rural Areas

Provincial Boundary

Region of PAPUA:Disadvantaged Villages: 91.00%Developing Villages: 8.91%Developed Villages: 0.09%

Region of MALUKU:Disadvantaged Villages: 60,60%Developing Villages: 38,60%Developed Villages: 0.80%

Region of SULAWESI:Disadvantaged Villages: 23,89%Developing Villages: 75,34%Developed Villages: 0,77%

Region of KALIMANTAN:Disadvantaged Villages: 37,80%Developing Villages: 61,05%Developed Villages: 1,15%

Region of NUSA TENGGARA:Disadvantaged Villages: 40,10%Developing Villages: 58,78%Developed Villages: 1,12%

Region of JAWA-BALI:Disadvantaged Villages: 2,56%Developing Villages: 87,74%Developed Villages: 9,70%

Region of SUMATERA:Disadvantaged Villages: 26,11%Developing Villages: 71,92%Developed Villages: 1,97%

Sources: Potensi Desa in 2014 (processed) & Permendagri 39/2014 (number of villages)

Developed Rural Areas Total:•Disadvantaged: 20.175 (27,23%)•Developing: 51.014(68,85%)•Developed: 2.904 (3,92%)

Strategic Issue of Developing Villages

1. High isolation of rural areas;2. Limited supply of public services and minimum basic services in

rural areas;3. Low supply of supporting infrastructure for rural productivity;4. Poverty, high rate of unemployment, and economic vulnerability

of rural communities;5. Development Village Index (IPD) classifies the type of Villages

into three, i.e. Disadvantaged Villages, Developing Villages, and Developed Villages. Nationally, the Distribution Pattern of Villages are:◦ Disadvantaged Villages which are 19.944 villages (26,92%); ◦ Developing Villages which are 51.127 (69%) villages; and◦ Developed Villages which are 3.022 villages (4,08%)

9. By total of 74 093 villages in accordance with Permendagri 39/2014 Target to achieve in 2019 are a reduction of 5000 Disadvantaged Villages and an increase in the amount of 5000 Developed Villages.

THE HUMAN RESOURCES CAPACITY IN THE VILLAGE

Human Resources (HR) in the village can be seen from the Education, gender and age of the village administrators.

UneducatedNot completed primary school/

equivalent

Primary school graduated/ equivalent

Secondary School

graduated/ equivalent

High School graduated/ equivalent

Associate Degree Bachelor Degree Master

DegreeDoctoral Degree

829 979 2093 11240 45137 2320 14488 1634 16

Gender of the Village Chief The average age of the Village Administrators

Male Female The average age of the Village Chief (years of age)

The average age of the Village Secretary(years of age)

74,251.00 4,485.00 44.79 43.00

1. The highest education level achieved by the Village Chief

2. Gender and the average age of the Village Chief

The essence of the New Law on Village (UU No 6/2014)

1. Governance system with New Law on Village (recognition to the indigenous tradition and values)

2. Planning Develompent Mechanism

3. The Village Budget

4. The Responsible Ministries on Village Affairs and Funds

GOVERNANCE SYSTEM ON VILLAGES

Village Meetings (Musdes)

(Clause 54)

Head of Village(Clause 25 – 53)

Village Consultative Institution (BPD) (Clause 55

-65)

Rural Society

Village Institutions (Services)

The Committee (Ad-hoc)

Rural Community Affairs (BUMDes)

Community of Special Interest

Representatives of Regional Area

• Village Medium Term Development Plan (RPJM) and Village Government Work Plan (RKP)

• Villagel Budget• Village Regulation• Government Performance• Cooperation

• Rural Medium Term Plan

• Rural Assets• Strategic Affairs

Governance Principles• Check and balances between the Head of

Village and the Village Consultative Institution

• Democracy of Representative + Consultative

• The process of participatory democracy through village meetings (Musdes)

Direct Election

Democratic Election

Indigenous Affairs

Village meetings: Digging the indigenous values and customs

Pulakek adalah salah satu jorong di Solok Selatan. Di sana Terkenal dengan 1000 Rumah Gadang dan banyak wisata alam yang indah. Jum’at Malam adalah hari pertemuan warga Pulakek di mana melibatkan pemerintah nagari,

(Musdes pembagian air pada kelompok tani di Desa Mandirancan Kec. Kebasen –

Banyumas)

The Village Development Planning Mechanism

Village Government

VILLAGE MEETINGS

Village Consultative Bodies (BPD)

Village Community/Societies

Village Medium Term

Dev. Plan (RPJMDes)

Program/Activities

Village Budget

Village Government

Work Plan (RKP Desa)

Central Government

(Ministries/Non Ministrial Agencies)

The Ministrial/Non are incorporated to RPJM Desa

Activities Financing Activities

Accompaniment

THE VILLAGE BUDGET

Village Funding

National Budget Allocation

DISTRICT/ CITY

Rural RPJM & Rural Budget

(1) Net income, assets, self-help and participation,

mutual aid, and other income of the village

PROVINCE

(7) Other legal

incomes

Financial Support from the Provincial Budget

(3) Minimal 10 % of the local taxes

and retributions

(4) Minimal 10% Balance Fund after deducting the Special

Allocation Fund (DAK)

(5) Financial Support from the Regional Budget

Program of the

Institution

Village Decree No.6 Tahun 2014

Village has a greater authority in planning, budgeting, and implementation of rural development based on the principle of Recognition and Subsidiaryimplication

(6) Grants and donations are not

binding

Development of Village

Clause 81 (5): Sectoral program is

informed to the Village Government

to be integrated within

Transferrable Funds

Program of the

Institution(2) Village funds from the state budget (10% of the gradual transfer of funds Regions) is transferred through Regional Budget

Part of the Fund Balance

Clause 72 (1 a)

Clause 72 (1 b)

Clause 72 (1 c)

Clause 72 (1 d) Clause 72 (1 e)

Clause 72 (1 e)

Clause 72 (1 f)

Clause 72 (1 g)

Clause 79 (6)Programs of the Central Government and / or the Local Government which its implementation is coordinated and / or delegated to village

The Village Revenues (UU 6/2014)

Allocation Sources CalculationAPBN Allocation (Art 72:1b), that coming from National spending by effecting all the programs based on villages equaly and fair. Village Funding (Dana Desa, Art. 72:2)

10% of Local Transfer Fund that will be transfer gradually.

Village Funding Allocation (ADD), apart of the balance fund that received by the local government (Art 72:1d)

10% of the balance fund of local government – Special Allocation Fund (DAK)

Apart of Local and Retributiobn TaxAt least 10 % of the total tax and retribution on Local Budget

Other sources could be from village revenues (PADes), Grant from District and municipalities, and unbinding donations

Village Revenues Plan 2015 (Perpres N0 36/2015)

No. Allocation Sources Calculation

A. State Budget (APBN)• Transfer Funding• Village Fund

643,8 T20,7 T

B. Local Budget (APBD)• Balance Fund – DAK• Village Fund Allocation

462,9 T46,3 T

C Apart from Local Tax and distribution

At least 10 %

D Grant from District/Municipal

Total A and B 66.9 T

Village Funding Disbursment Progress from APBN (July 8, 2015)

Total Village Funding (Rp)

APBN 9,006 T

APBN-P 20,766 T

434 Kab/Kota

8,1 T

From 8, 31 T First Phase Disbursment

97.44 %

434 Kab/Kota

Disbursement Plan: 40 % (1), 40% (2), and 20% (3)

Division of Authority in the Management of Village Funds

MINISTRY OF FINANCE

MINISTRY OF HOME AFFAIRS

MINISTRY OF VILLAGE, DISADVANTAGED AREA AND

TRANSMIGRATION

Alocate Village Fund on the National Budget

Facilitate on the regulation on the distribution of Village fund

Establish the general guidelines and priorities for the use of the Village Fund (prioritas penggunaan dana desa)

Determine the amount of funding allocation for each district/city

Strengthen the capacity of village officials (aparat desa)

Village Fund assistance at the district, sub-district and local region of village

Disburse the funds in each district/city

Facilitate on the management of Village Fund

Enhance the assistance capacity

ARRANGEMENT OF THE POLICIES TO VILLAGE FUND IMPLEMENTATION

MONITORING, REPORTING AND EVALUATION

VILLAGE AS THE FUTURE OF INDONESIA:

Future Paradigm of Village Development

1. Limited infrastructure of basic services (education, health and economy);

2. Limited livelihood, mostly Agriculture;

3. Fillers Urbanization-the Big City;Disadvantaged compared to the City;

4. Lack of human resource capacity;

5. Requires support from the higher authority;

6. Limited fund to develop the village, through Budget 2013: 1,600 T Budget, the village only received 2.6% with the details of the total state budget for 72 944 village = 42 T, indirectly to the village = 32 T, and direct to the village = 10 T through PNPM;.

Future Construction

of Village

Being advanced, developed,

and prosperous

without losing their identity

THE PURPOSE OF VILLAGE DEVELOPMENT

RURAL DEVELOPMENT

Improve Rural Community WELFARE

Improve the QUALITY OF LIFE

POVERTY REDUCTION

through

Compliance of Basic Needs

Development ofVillage’s Facilities

Development ofVillage’s Infrastructure

Development of Potential Local Economy

Utilization of Natural Resources and Sustainable

Environment(Clause 78 UU Desa)

SUSTAINABLE DEVELOPMENT OF VILLAGESTRONG, ADVANCED,

DEVELOPED, AND DEMOCRATIC VILLAGE

Phases:•Plan•Implementation•Supervision

Emphasizes togetherness, Kinship, mutual cooperation in order to

realize Mainstreaming of Peace & Social Justice

SUPPORTING THE NATIONAL PROGRAM OF DEVELOPING VILLAGE(by Kemendesa according to RPJMN Tahun 2015-2019)

1. Launch the “SELF-DEVELOPED VILLAGE MOVEMENT” on 3.500 villages in 2015;

2. MENTORING and STRENGTHENING the capacity of institutions and apparatus of the 3.500 villages in 2015;

3. ESTABLISH and develop the 5,000 Village Enterprises (BUMDes);

4. REVITALIZE rural market in 5.000 villages/rural areas;

5. DEVELOP the infrastructure of village and rural roads to support rural priority commodities in 3.500 self-develop villages;

6. PREPARE the implementation of incremental allocation of village funds of the maximum of Rp. 1.4 billion per village;

7. DELIVER capital assistance for cooperatives in 5.000 villages;

8. Pilot Project on public services system by online network on 3.500 villages

9. ”save villages” in the border and outer islands area.

SoftwareLocal Government

Capacity: Institutional, Financial, and

Officlal

HardwareInfrastructure and Facilities

Integration Scheme of Central-Regional-and Village Government

in terms of Public Service

Central Government Competence

Lack of monitoring, evaluation, reward and punishment

Related regulations have not been

aligned with the planning and

budgeting SPM in the area

lack of socialization and regulations

concerning Management Control

System (SPM)

Operational guidelines and

technical guidelines of

the institution can not be

applied in the area

Regional Government Competence

Financial management and funding by local

governments are still low

Low commitment to

the region in implementing

SPM

The capacity of local government officials

are still low

SPM has not been integrated

in the local development plan (Village RPJM, RKP,

strategic plan)

Village Government Competence

Financial management and funding by local

governments are still low

Low commitment to

the region in implementing

SPM

The capacity of local government officials

are still low

SPM in Village RPJM and

Village Budget

DESIGN OF RURAL DEVELOPMENTTO BE A SUSTAINED VILLAGE AND ABLE TO FORM A NEW URBAN AREA

High Self Resilient Village

• Socio-economic resilience and mechanisms to survive for themselves and the people in the surrounding villages.

• Developed in everything: food, energy, water, electricity, etc.

Resillient VillageEconomically have the resilience and resistance mechanisms that are built to survive the economic crisis, social and living environment for all residents of the village.

Vulnerable Village•Able to only survive for its own region•Vulnerable to Social-Economy and Environment Shock

Advanced Sustainable Village• Able to drive the economy for

the area / surrounding regions

• If it has urban function it can be a new urban area

Sustainable Village

New Urban Area

Pengembangan Desa Secara Sosial, Ekonomi Dan Ekologi

The Current observation on Village Fund Disbursement

Most of the villages that has been received the Village Fund on Phase I, by condition:

a) The head of village has not use yet the village funds due to inavailability of the technical guidance that shuld be provided by the local government;

b) Some head of villages that has disbursed and used the village fund without follow the mechanism as stated on Village Law

Why still very Low?

1. Multi interpretation on some ministerial regulation;

2. The document for disbursement consider too administrative and complicated;

3. Duplication in the village fund accountability report (Permendagri dan PMK);

4. Unavailability on the procurement for the good and services in villages;

5. The limitation for the village companion (currently 1 village companion serves 3 villages).

25

Thank You

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