Management Model of Village Fund Allocation in Enhancing the Village¡¯s Productive Economic Activities

The study aims to elaborate the management and allocation of village fund from the central and local governments and to formulate management model and documents of strategic plans in the implementation of the fund in the second year as a follow-up development. The research involved village heads and officers in Regional Government of Bone Bolango regency, local public figures, and residents receiving financial support from the village fund. The descriptive qualitative study employed Milles and Huberman analysis method and conducted focus group discussions to obtain the data. The result shows that the implementation of the management model is successful to empower the community, as overviewed from achievements by the Regional Government of Bone Bolango regency. The government¡¯s achievement inspires the central government to allocate more fund to the village in the next year. The village fund of IDR 122,344,494,000 is distributed as follows: 30% of the fund is allocated for the operational budget of the village government and the Village Consultative Body (Badan Permusyawaratan Desa, BPD); moreover, 70% of the fund is distributed for empowerment of the community and enhancement of the village government¡¯s capacity. Henceforth, it is proven that the village fund is optimally conducted as economic leverage for the village to progress and as a helping hand to boost the community¡¯s welfare in Bone Bolango regency.