EFFICIENCY OF VILLAGE FUNDS TOWARDS DEVELOPING VILLAGE INDEX IN INDONESIA

• Main Author: Mayang Febriana, Salsabila
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/64561
• Institution: Institut Teknologi Bandung

This research aims to assess the efficiency of the transfer of village funds from the central government in different amounts for each local government of region in Indonesia, by comparing efficiency results of 434 regencies between its allocation of village funds towards its Developing Village Index. Using input-oriented Variable Return to Scale (VRS) Data Envelopment Analysis (DEA) approach during 2015-2019, the results show that seven regencies always be positioned as efficient in managing the village funds in national level, namely: Kota Sabang, Kota Prabumulih, Kota Banjar, Kota Batu, Kota Kotamobagu, Kab. Badung and Kota Denpasar. Furthermore, this research also provides benchmarks of efficient local governments based on province, amount of village funds, and overall village status on average. Malmquist index is also used to indicate improvement of efficiency for the most efficient regencies at national level, except Kota Batu, Kab. Badung and Kota Denpasar still maintain stable efficiency. Around 3% of 434 regencies show a decline in efficiency, meanwhile almost 1% show stable or no improvement in efficiency level. Later on, it is expected that the result can be a recommendation to local government policy to improve their ability in managing resources.