Village policy study in overcoming social and economic inequality in local communities

  • Talitha Wenifrida Massenga 
    Universitas Pembangunan Indonesia
    Indonesia

Abstract

Social and economic inequalities in local communities are significant challenges in achieving sustainable development, particularly in rural areas. This study aims to evaluate village policies designed to address these inequalities at the local level. A qualitative approach, combining document analysis, in-depth interviews, and field observations, was used to collect data from village development reports, policy documents, and interviews with village officials, community leaders, and residents in several regions of Indonesia, including Central Java, West Sumatra, and South Sulawesi. The data were analyzed using content analysis to assess the effectiveness of these policies and their impact on reducing inequality. The study finds that village policies such as the allocation of Village Funds (DD), community-based economic empowerment initiatives, and social protection programs have played a crucial role in alleviating social and economic disparities. For example, the implementation of the Village Fund has facilitated improvements in infrastructure, including the construction of roads, access to clean water, and educational facilities, directly enhancing the community’s quality of life. Moreover, community-driven economic programs, such as the establishment of Village-Owned Enterprises (BUMDes), have led to job creation and increased household incomes. However, the study also identifies significant challenges, including limited governance capacity at the village level, insufficient community participation, and weak supervision of policy implementation. This research concludes that while village policies have the potential to reduce inequality, their success depends on good governance, increased community involvement, and stronger oversight mechanisms. Concrete recommendations include enhancing the capacity of village governments through training in financial management and project planning, utilizing digital technology for transparent budgeting, and integrating village policies more effectively with national development programs to ensure sustainable outcomes.

Keywords
  • Village fund
  • Community-based enterprises (BUMDes)
  • Governance challenges Social inequality
  • Economic empowerment
  • Rural development
Lisensing Information
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References
  1. Aminullah, A., Gani, A. J. A., Suryadi, S., & Hariyono, B. S. (2022). Public policy implementation effectiveness (Case study of village fund implementation in Linggo Pasuruan). Wacana Journal of Social and Humanity Studies, 25(2).
  2. Browne, E. (2014). Social protection accountability.
  3. Calderón, C., & Servén, L. (2014). Infrastructure, growth, and inequality: An overview. World Bank Policy Research Working Paper, 7034.
  4. Corral, P., Irwin, A., Krishnan, N., Mahler, D. G., & Vishwanath, T. (2020). Fragility and conflict: On the front lines of the fight against poverty. World Bank Publications.
  5. Dudley, E. (2002). The critical villager: Beyond community participation. Routledge.
  6. Ernawati, E., Tajuddin, T., & Nur, S. (2021). Does government expenditure affect regional inclusive growth? An experience of implementing village fund policy in Indonesia. Economies, 9(4), 164.
  7. Farida, A., Arifuddin, M. H., Rahimi, N., & Kamarni, N. (2022). Pengaruh pembangunan desa terhadap penanggulangan kemiskinan di Indonesia. Jurnal Samudra Ekonomi Dan Bisnis, 13(2), 191–205.
  8. Giampiccoli, A. (2020). A conceptual justification and a strategy to advance community-based tourism development. European Journal of Tourism Research, 25, 2503.
  9. Grindle, M. (2012). Good governance: The inflation of an idea. Planning Ideas That Matter, 259–282.
  10. Gupta, J., & Vegelin, C. (2016). Sustainable development goals and inclusive development. International Environmental Agreements: Politics, Law and Economics, 16, 433–448.
  11. Hakim, M. A. (2013). Good Governance in a Village and the Need for Village Autonomy in Bangladesh: An Overview. Bangladesh Journal of Public Administration, 148–170.
  12. Hilmawan, R., Aprianti, Y., Vo, D. T. H., Yudaruddin, R., Bintoro, R. F. A., Fitrianto, Y., & Wahyuningsih, N. (2023). Rural development from village funds, village-owned enterprises, and village original income. Journal of Open Innovation: Technology, Market, and Complexity, 9(4), 100159.
  13. Ika, L. A., & Donnelly, J. (2017). Success conditions for international development capacity building projects. International Journal of Project Management, 35(1), 44–63.
  14. Ilhami, R. (2022). The influence of village fund allocation policies on infrastructure development in villages. Jurnal Ekonomi, 11(03), 2138–2143.
  15. Karima, N., Alfirdaus, L. K., & Yuwono, T. (2023). The Politics Of Social Policy Of Direct Cash Assistance Of Village Funds (Blt Dd) As Poverty Reduction Effort In Pandemic Periods In Indonesia. Jurnal Education And Development, 11(1), 187–191.
  16. Manitra, R. R. M. (2025). Implementation of Village Law as A Tool for Poverty Alleviation in Lerep Tourism Village.
  17. Martínez-García, M., Vallejo, M., Hernández-Lemus, E., & Álvarez-Díaz, J. A. (2019). Novel methods of qualitative analysis for health policy research. Health Research Policy and Systems, 17, 1–13.
  18. McLean, B. L., & Borén, T. (2015). Barriers to implementing sustainability locally: A case study of policy immobilities. Local Environment, 20(12), 1489–1506.
  19. Mungyun, T. (2024). Digital Business Design and Its Implementation During Disruption Era. Journal of Current Research in Business and Economics, 3(1), 2919–2952.
  20. Nasfi, n, Aimon, H., & Ulfa Sentosa, S. (2023). Build the village economy: A systematic review on academic publication of Indonesian village-owned. Cogent Social Sciences, 9(2), 2252682.
  21. Pawitan, G., Lesmono, D., Aritonang, K., & Diyanah, M. C. (2025). Empowering Rural Communities through Strengthening Village-Owned Enterprises (BUMDes) for Sustainable Socioeconomic Development: A Case Study of Mekarsari Village, Garut Regency. Society, 13(1), 256–274.
  22. Permatasari, P., Budiarso, A., Dartanto, T., Samosir, A. P., Saputro, B., Ekayana, D., Agustono, E. D., Alim, T. E., Hartono, L., & Wahyuputri, F. W. (2024). Village fund management and reporting systems: are they accountable? Transforming Government: People, Process and Policy, 18(4), 512–528.
  23. Peters, B. G., Capano, G., Howlett, M., Mukherjee, I., Chou, M.-H., & Ravinet, P. (2018). Designing for policy effectiveness: Defining and understanding a concept. Cambridge University Press.
  24. Rahmatullah, M., & Mashdurohatun, A. (2024). Reconstruction of village fund management regulations to enhance development quality based on principles of justice.
  25. Ramzy, O., El Bedawy, R., Anwar, M., & Eldahan, O. H. (2019). Sustainable development & good governance. European Journal of Sustainable Development, 8(2), 125.
  26. Rosyadi, S., Yamin, M., Darmawan, A., Runtiko, A. G., Wijaya, S. S., Gunarto, G., Nuraini, H., Sulaiman, A. I., & Ahmad, A. A. (2024). Does Rural Development Enable Community Empowerment? Evidence from Village Fund in Indonesia. Pakistan Journal of Life & Social Sciences, 22(1).
  27. Sabet, N. S., & Khaksar, S. (2024). The performance of local government, social capital and participation of villagers in sustainable rural development. The Social Science Journal, 61(1), 1–29.
  28. Sirajuddin, T. (2020). Rural development strategies in Indonesia: Managing villages to achieve sustainable development. IOP Conference Series: Earth and Environmental Science, 447(1), 12066.
  29. Sovacool, B. K. (2018). Bamboo beating bandits: Conflict, inequality, and vulnerability in the political ecology of climate change adaptation in Bangladesh. World Development, 102, 183–194.
  30. Suharto, N. T., Ph, S., Jaedun, A., & Purwanta, H. (2020). The effectiveness of a school-based disaster risk reduction program in Indonesia: a case study in the klaten regency’S junior high schools. International Journal of Innovation, Creativity and Change, 12(12), 949–962.
  31. Sulaiman, M. Y. (2021). Impact Of Direct Cash Assistance On The Welfare Of The Community In Panrannuangku Sub-District North Polongbangkeng Takalar District. Income Journal Of Economics Development, 1(2), 90–103.
  32. Susilowati, N., Mahmud, A., Widhiastuti, R., & Rahman-ingtyas, W. (2020). Good Village Governance: Internal Control Model of Village Funds Management. KnE Social Sciences, 137–148.
  33. Thein, H. H. (2017). Analysis of the effectiveness of government policy at the local, provincial and regional levels on enabling environment for smallholder farmers in agribusiness supply chains in regions of South Sulawesi, Indonesia.
  34. Wahyuningsih, P., & Kiswanto, K. (2016). Factors Affecting The Accountability of Village Financial Management. Accounting Analysis Journal, 5(3), 139–146.
  35. Wijaya, G. G., Nuraini, H., Sulaiman, A. I., & Ahmad10, A. A. (2024). Does Rural Development Enable Community Empowerment? Evidence from Village Fund in Indonesia.

Downloads

PDF

Statistic

Abstract Views
: 434 times
PDF
: 67 times