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The Effect of the Utilization of Village Fund on Family Welfare in Buleleng District, Bali

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The Effect of the Utilization of Village Fund on Family Welfare in Buleleng District, Bali Advances in Social Science, Education and Humanities Research, volume 556 Proceedings of the 2nd Annual Conference on Education and Social Science (ACCESS 2020) The Effect of The Utilization of Village Fund on Family Welfare in Buleleng District, Bali I Putu Gede Diatmika* N. Djinar Setiawina Faculty of Economics Faculty of Economics and Business Ganesha Education University Udayana University Singaraja, Indonesia Denpasar, Indonesia [email protected] IGW Murjana Yasa Ida Bagus Putu Purbadharmaja Faculty of Economics and Business Faculty of Economics and Business Udayana University Udayana University Denpasar, Indonesia Denpasar, Indonesia Abstract—Development in the village is a participatory development can be addressed by various efforts to guide development model, which is a joint development management families from various aspects of life including the health system, which is planned, implemented, and evaluated through aspect. Purwadinata [1] has shown an inequality in income deliberation, consensus, and cooperation. The objectives of this distribution between urban and rural areas. This imbalance study are first to analyze the direct effect of community indicates that the people's welfare is not evenly distributed. participation, intellectual capital, the role of the government on The income distribution gap has implications for the high the use of village funds, village economic performance, and rate of poverty in rural areas, especially in the Buleleng family welfare, second to analyze the direct effect of the use of Regency. village funds and village economic performance on family welfare. This study also applies the indirect effect of Several factors influence the low family welfare in rural community participation, intellectual capital, the role of areas. For example, a largely rural area with a large government through mediating the use of village funds and population, low levels of income, education, and health, village economic performance on family welfare; analyzing the lack of accessibility to productive factors such as funds and indirect effect of the use of village funds mediated by the economic performance of the village on family welfare. Data investment, and insufficient access to information. There is analysis techniques using SEM-PLS with the help of Smart a social and economic gap between urban and rural areas, PLS 3.0 software, it was found that direct community this condition is not much different in Buleleng Regency. participation, intellectual capital, and the role of government Swara and Jember [2] state that development policies have a positive and significant effect on the use of village funds, should be adapted to local conditions. village economic performance, and family welfare; directly the use of village funds and village economic performance has a The development plan between top-down-bottom-up is positive and significant effect on family welfare, which shows implemented in stages and development should be focused that all variables or exogenous constructs have a direct effect on programs related to people's lives, especially in on endogenous variables with P values less than 0.05 or with t- alleviating poverty, starting from human resources, natural count greater than ± 1.96. The results of this study also found resources, and funds owned. The key to success for the that, indirectly, community participation, intellectual capital, welfare of the community in building the village is the and the role of government had a significant effect mediated by strong touch of initiation, innovation, creation, and the use of village funds on village economic performance; collaboration between village officials and the community indirectly community participation, intellectual capital and the role of the government have a significant effect mediated by in realizing common goals. Village development cannot be the use of village funds and village economic performance on carried out by village officials alone, but it requires family welfare; Indirectly, the use of village funds is mediated support, initiative, and an active role from the community. by the economic performance of the village which has a Planning for Village Funds in Buleleng Regency still needs significant effect on family welfare. improvement. All components of the community are tasked with planning, managing, and overseeing the Village Fund. Keywords—community participation, village funds, welfare The government strives to make Village Funds more pro-poor. In addition, the drafted regulations also produce I. INTRODUCTION an effective, efficient, and accountable Village Fund Community development depends on family life as part management system, so that the government's objectives of society. The family has a strategic value in national through the allocation of Village Funds can be realized. For development and becomes the foundation for the this reason, in Buleleng Regency, it is necessary to development of the whole human being. The problem is that strengthen institutional capacity and human resources, both many Indonesian families are still in an underprivileged village government officials, communities, and village condition. This is the obligation of all parties to improve welfare to achieve a prosperous family. The purpose of this assistants as well as improving transparency, accountability, and supervision in the management of Copyright © 2021 The Authors. Published by Atlantis Press SARL. This is an open access article distributed under the CC BY-NC 4.0 license -http://creativecommons.org/licenses/by-nc/4.0/. 18 Advances in Social Science, Education and Humanities Research, volume 556 Village Funds and Village finances. The number of Village Funds as a source of village income are Villages that will be targeted by the Village Fund in Bali managed within the framework of Village Financial Province is a total of 636 villages spread over nine districts management. Village finances are managed based on in Bali. Tabanan Regency has the greatest number of transparent, accountable, participatory principles, and are villages, namely 133 villages followed by Buleleng carried out with the utmost and discipline. In Indonesia, it Regency with 129 villages, and Denpasar City having the has begun to implement the application of economic least number of villages, namely 27 villages. Of the total improvement from a centralized policy to a policy of village funds, Buleleng Regency receives village funds building from the periphery by reforming the rural amounting to 20 percent. The distribution of the Village institutional structure. A concentration that supports rural Fund is expected to increase the empowerment of the local development, wants output which is economic growth in economy, create local transparency access to the region, rural areas with an institutional structure that is built and and accelerate the fulfillment of basic infrastructure. The accompanied by the concept of macroeconomic growth at purpose of distributing the Village Fund is to create the level of politeness, high savings, the investment that community independence and sustainability that has social, supports economic development that supports rural economic, and ecological resilience, as well as economic development. Utilization of Village Funds in strengthening the linkages of urban-rural economic Buleleng Regency can be regulated, in rural economic activities. institutions that do not support the use of village funds properly, they cannot produce output that is significant for Village Fund users in Buleleng Regency need to pay rural economic growth. The efficient use of Funds is slowly attention to the principles of using Village Funds. There are creating a market that is in favor of the rural economy. A 6 principles for setting priorities for the use of Village market that refers to a balance of demand and supply that Funds, consisting of (1) Justice Principle, prioritizing the can serve specialists in the distribution of the rural rights and interests of all Village residents without economic pie that boosts productivity and ultimately discrimination, (2) Priority Needs Principle, prioritizing creates good rural economic performance. urgent Village interests, (3) Village Authority Principle, prioritizing the authority of origin rights and village-scale The failure of various rural development programs can local authority, (4) Participatory Principles, prioritizing be caused, among others, due to the preparation, Community initiative and creativity, (5) Self-management implementation, and evaluation of rural development and village resource-based principles, implementing programs that do not involve community participation, independently with the utilization of Village natural development is carried out without being aspirational and resources, prioritizing energy, thoughts, and skills Village participative. The development policy process puts forward residents and local wisdom, (6) Village Typology, taking a centralized political paradigm and the dominant role of the into account the circumstances and realities of the typical state in the mainstream of social life. As a result of this non- geographical, sociological, anthropological, economic and aspirational and less participatory development planning ecological characteristics of the Village, as well as changes mechanism, the results of planning and development or developments and progress of the Village. processes, especially at the village level, are often unsustainable. Law Number 32 of 2004
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