Monday, 18 January 2016


The Minister of Development for Less Developed Regions and Transmigration Narwan Jafa started that bottleneck in pipelining of village fund was not at Central Government but at Regency level. He said the Government had distributed village fund to Regencies and Towns but they had not passed the fund on the fund to the villages.

Marwan reckoned that slow distribution of village fund was due to requirements by Regent’s Regulations to be fulfilled by the respective villages. President Joko Widodo had commanded the fund liquidation process be accelerated. For that matter the Ministry has fostered coordination with Regents, Moyors and local leaders. 

Accordingly the Ministry they had amended the Rural Law to simplify the rules. This week we already had made Joint declaration by 3 Ministries. The Ministry of PDT the Ministry of Internal Affairs and the Ministry of Finance to revise all existing regulations so there is only one Umbrella Law for all. The objective was to ease fund liquidation and make it easy for Village Heads to obey the Existing Regulations” Marwan said while quoting 3 point in the Joint Declaration on the procedures of pipelining of village fund, utilization easier.

Furthermore Marwan stated there were two prioritized programs recommended by the Governments to Village Heads for the utilization of the fund, i.e. to build roads and irrigations. If the Villages progressed and irrigations were well managed, Marwan said , the third alternative was economic strengthening like developing livestock farm, UMKM small business, handicrafts etc. “The target is that all funds be liquids this month so Phase Two supposedly in September or hopefully early October. For the first stage the villages being prioritized were 40% of Rp.20 trillion, phase two 40% of 20 trillion and phase there for three for the rest” he said. (SS)

Business New - September 11, 2015

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