Musa Hefer Smas, Meggy Merlin Mokay, Endang Nurhayati, Margana
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Overcoming extreme poverty through the utilisation of Village Funds: A case study in Indonesia
This study examines the effectiveness of the Village Fund in reducing extreme poverty in Indonesia through a mixed methods approach with a parallel convergent design. Quantitatively, the data shows a reduction in the national poverty rate from 9.57 % to 9.03 % by 2023–2024, with the most significant impact outside Java. Qualitative data from 100 key informants and 20 villages demonstrate the benefits of the Village Fund in improving access to basic services, local economic empowerment, and productive infrastructure development. However, challenges remain, including unequal distribution of funds and varying village institutional capacity. The study recommends a “differentiated support” approach and strengthening multi-actor synergies. Findings support the community-based development model and align with SDG 1: No Poverty. As such, the Village Fund has the potential to catalyze structural transformation towards inclusive and sustainable village development.
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