The Indonesian Government has disbursed Rp468.9 trillion in village funds from 2015 to 2022, Deputy Finance Minister Suahasil Nazara has informed.

“These village funds are available in the village cash account, and we hope they are used as much as possible to improve the life quality of the village community, according to their needs,” Nazara said at a webinar entitled ‘Encouraging Rural Banking to Rescue MSMEs’, originating from here on Wednesday.

In 2021, the government has requested that at least eight percent of the village funds in each village be utilized for dealing with COVID-19, he noted adding, the government has allocated Rp72 trillion for village funds.

Meanwhile, special staff for financial services and capital markets at the Finance Ministry, Suminto, observed that the amount of village funds has continued to increase each year.

In 2015, the government had distributed village funds to the tune of Rp20.7 trillion, he noted. The quantum of village funds has increased to Rp68 trillion, and is targeted to reach 74 thousand villages in 2022, he added.

“The average village fund received by each village has tripled. In 2015, the average fund per village was around Rp280 million. This year, it has reached Rp960 million (per village),” he expounded.

Village funds would be effective in reducing poverty in villages and for building development, he informed.

Citing data from Statistics Indonesia, he said poverty rates in villages in March 2021 hit 13.20 percent.

“The village fund is expected to solve this problem and (support) other human development, including the construction of basic infrastructure in villages,” Suminto remarked.

He also hoped that Rural Banking (BPR) can help the government in optimizing the distribution of village funds.

“It is expected that BPR can also benefit from the village funds. Then, with the rise in economic activities and community welfare (of villages), banking activities will improve too, including BPR,” he added.

Source: Antara News