Underfunded Potential: Financial Challenges of LPHD Dariaga Mudae amid Strong Village Growth

This study explores the financial readiness of Lembaga Pengelola Hutan Desa (LPHD) Dariaga Mudae in Darunu Village, North Minahasa, Indonesia. Although the institution was officially established in 2023 and operates in a village with significant socio-environmental potential, it has been unable to secure consistent stakeholder funding. The core issue identified is the absence of basic financial reporting systems, including bookkeeping, budget planning, and transparency mechanisms. Using a qualitative descriptive approach, data were collected through in-depth interviews, field observations, and document analysis. The findings indicate that the LPHD lacks personnel with financial expertise, has no formal financial documentation procedures, and has never submitted reports to relevant government agencies or donors. As a result, the institution remains isolated from broader funding opportunities, despite being embedded in a highly active and well-structured village environment. The study highlights the institutional disparity between LPHD and other local bodies such as BUMDes and tourism groups, which have successfully accessed financial support. It concludes that building the financial capacity of community-based forest institutions is crucial to unlock their full potential and connect them to global sustainability initiatives. The research also calls for further studies on scalable financial training models for newly formed LPHDs across Indonesia to enhance transparency, accountability, and long-term viability.