REVIEW OF VILLAGE DECENTRALIZATION IN INDONESIA: REFORMULATION OF VILLAGE BUDGETING 2017 AND 2018

• Main Author: Brian Rosandi, Vely
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/40544
• Institution: Institut Teknologi Bandung

This study aims to review the decentralization of villages in Indonesia related to the village budgeting formula for 2017-2018 and how to study the appropriate village budgeting reformulation. To achieve this goal, in addition to looking at the general characteristics of village budgeting conditions for 2017 and 2018, researchers also analyzed several models of village funds and variables used in determining village funds 2017-2018. The variables used are derived from the elaboration of Government Regulations, Ministerial Regulations, and Legislation governing village budgeting 2017-2018. which includes Basic Allocation (Number of Villages), Allocation of Formulas (Population, Poor Population, Area, Construction Expansion Index), and Affirmation Allocation (Disadvantaged Villages and Very Disadvantaged Villages. Then for the village fund model used comes from the description in Lewis Research (2015) which includes Village Fiscal Needs, Original Village Funds, Actual Village Funds, Ideal Village Funds, and Allocation Mistakes, and related to the formulation of village funds 2017-2018 using optimization scenarios through optimization of weights and alpha. From all the results of the study it was concluded that village budgeting for the year 2017-2018 still causes injustice and misallocation which is not in accordance with the ideal fiscal needs of the village. So that reformulation of village funds using optimization scenarios can answer according to the ideal fiscal needs of the village and reduce the allocation errors that occur.