Village Funds, Local Politics, and the Limits of Decentralized Governance in Banten, Indonesia
DOI:
https://doi.org/10.46507/jclp.v4i2.772Keywords:
Village governance, Decentralization, Village Funds, Accountability, Local PoliticsAbstract
This article analyzes the political dynamics and governance that shape the implementation of Indonesia's Village Fund Program based on Law No. 6 of 2014, with a focus on a qualitative case study in Banten Province. Although this program is urgent as a leading decentralization instrument that allocates significant public resources to the village level, evidence on how village governance actually operates—and why performance varies—remains uneven. Drawing on a synthesis of literature, official reports, and village-level data, this study shows that improvements in rural infrastructure and basic services go hand in hand with persistent governance deficits. Limited administrative and financial capacity among village officials, weak and procedural accountability practices, and increasingly intense local political pressures limit the democratization and development goals promoted by the law. Transparency and oversight mechanisms often function as formal compliance rather than effective control, while community participation in planning and monitoring tends to be low, facilitating patronage networks and increasing the risk of abuse of authority and corruption. The uniqueness of this article lies in its linking of decentralization outcomes to the micro-politics of village administration and the implementation of accountability. This article provides implementable policy directions such as capacity building, stronger oversight architecture, participatory guarantees, and targeted anti-corruption measures to strengthen transparency, accountability, and citizen control in the governance of Village Funds.
References
Alfirdaus, L. K., Kushandajani, & Harsasto, P. (2021). Pemberdayaan Perempuan dalam Implementasi Undang-undang No. 6 Tahun 2016 di Desa Lerep, Kabupaten Semarang. Jurnal Pengabdian Vokasi, 2(1), 27. https://doi.org/doi.org/10.14710/jpv.2021.11174
Antlöv, H. (2024). Community Development and the Third Wave of Decentralisation in Indonesia: The Politics of the 2014 Village Law. Kritisk Etnografi: Swedish Journal of Anthropology, 2(1–2), 17–31. https://doi.org/10.33063/diva-409759
Antlöv, H., Wetterberg, A., & Dharmawan, L. (2016). Village Governance, Community Life, and the 2014 Village Law in Indonesia. Bulletin of Indonesian Economic Studies, 52(2), 161–183. https://doi.org/10.1080/00074918.2015.1129047
Ardiputra, S., Milyan, M., Akhmad, Z., Sulthan, M., & Ardiputra, M. A. (2025). Optimizing budget policy in village fund allocation (ADD): a governance and public administration perspective on rural development. Frontiers in Political Science, 7, 1581806. https://doi.org/10.3389/fpos.2025.1581806
Aspinall, E., & Rohman, N. (2017). Village head elections in Java: Money politics and brokerage in the remaking of Indonesia’s rural elite. Journal of Southeast Asian Studies, 48(1), 31–52. https://doi.org/10.1017/S0022463416000461
Bebbington, A., Dharmawan, L., Fahmi, E., & Guggenheim, S. (2006). Local Capacity, Village Governance, and the Political Economy of Rural Development in Indonesia. World Development, 34(11), 1958–1976. https://doi.org/10.1016/j.worlddev.2005.11.025
Brooks, D. B. (2002). Local-level management. Ottawa: International Development Research Center.
Chugh, S., & Malik, C. S. (2022). Community Participation in the Framework of Decentralization Move towards Local Self-Governance. In Politics of Education in India: A Perspective from Below (pp. 17–30). Routledge India. https://doi.org/10.4324/9780429285523-4
Cresswell, J. (2016). A concise introduction to mixed methods research. SAGE publications.
Erowati, D., & Astuti, P. (2025). Political Dynamics in Village Head Elections. In Bridging Innovation And Technology Social Cultural Contexts. Deepublish.
Foster, A. D., & Rosenzweig, M. R. (2022). Democratization, Elite, Capture, and Economic Development (Issue 0). National Bureau of Economic Research. https://doi.org/10.3386/w29797
Gautam, D. R. (2023). Local-Self Governance in Federal Nepal: Practice, Prospects and Limitations. Pragnya Sarathi, 21(1), 60–66. https://dmcjournal.edu.np/index.php/ps/article/view/7
Kamalasiri, V., & Ramasamy, R. (2025). Local Self-Government in Sri Lanka: Democratic Decentralization or Recentralization? In Making Democratic Decentralization Work in South Asia (pp. 45–63). Springer. https://doi.org/10.1007/978-3-031-94468-0_3
Kertati, I., Jenita, J., & Mee, L. C. (2023). Synergity Of Human Resources Proficiency With Financial Management As A Policy In Guaranteing The Quality Of Government Welfare. Multicultural Education, 9(1), 74–88.
Koter, D. (2013). King makers: Local leaders and ethnic politics in Africa. World Politics, 65(2), 187–232. https://doi.org/10.1017/s004388711300004x
Mir, T. A., & Singh, M. (2024). Decentralization through Local Self-Governance in Pulwama, Jammu & Kashmir. In Democratic Decentralisation and the Positioning of Indigenous: From Margins to Mainstream. Concept Publishing Company.
Mulyani, Y. (2019). Village Income Per Capita Doubles Since Implementation of Village Fund. https://setkab.go.id/en/village-income-per-capita-doubles-since-implementation-of-village-fund/#:~:text=According to the President%2C since,and Rp70 trillion this year
Novitasari, A. D., & Harsasto, P. (2019). Akuntabilitas penyelenggaraan pemerintah desa dalam penerapan anggaran dana desa. Jurnal Ilmiah Ilmu Pemerintahan, 9(1), 121–130. https://ejournal3.undip.ac.id/index.php/jpgs/article/view/26345/23290
Nurjaman, R. (2018). Melawan Korupsi Dari Bawah: Strategi Penguatan Akuntabilitas Lokal Dalam Pengelolaan Keuangan Desa. Jurnal Masyarakat & Budaya, 20(1), 31–48.
Oktavia, S., & Biduri, S. (2024). Transparent Governance: Unveiling Accountability in Village Budget Management. Indonesian Journal of Law and Economics Review, 19(2), 10–21070. https://doi.org/10.21070/ijler.v19i2.1040
Rabinovych, M., Brik, T., Darkovich, A., Hatsko, V., & Savisko, M. (2025). Ukrainian decentralization under martial law: challenges for regional and local self-governance. Post-Soviet Affairs, 41(5), 411–435. https://doi.org/10.1080/1060586X.2025.2520167
Ruan, J., & Wang, P. (2023). Elite Capture and Corruption: The Influence of Elite Collusion on Village Elections and Rural Land Development in China. China Quarterly, 253, 107–122. https://doi.org/10.1017/S0305741022001217
Setiawan, P., Badaruddin, B., & Amin, M. (2022). Analisis Penggunaan Dana Desa Berdasarkan Permendesa PDTT Nomor 16 Tahun 2018 Tentang Prioritas Penggunaan Dana Desa Tahun 2019. Perspektif, 11(2), 718–734. https://doi.org/10.31289/perspektif.v11i2.6175
Sutoro. (2023). Village governance and development in indonesia. Gadjah Mada University Press.
Syah, A. A., & Soelistyo, A. (2022). Pengaruh Alokasi Dana Desa, Pengeluaran Pemerintah Sektor Pendidikan Dan Kesehatan Terhadap Indeks Pembangunan Manusia Di Provinsi Jawa Timur Tahun 2011-2020. Jurnal Ilmu Ekonomi JIE, 6(2), 203–210. https://doi.org/10.22219/jie.v6i2.20463
Tajudin, T., Hutasoit, J. A., & Andini, N. O. (2025). Accountability in the Management of Village Funds under Law No. 6 of 2014: An Analysis of Good Governance Implementation. 3(6), 195–206. https://doi.org/10.59525/rechtsvinding.v3i2.1070
Wahyudi, A., Sartika, D., Heru Wismono, F., Erinda Ramdhani, L., Rosalina, L., Kusumaningrum, M., & Zakiyah, S. (2020). Investigating Organizational and Human Resource Capacity of Village Government: A Case Study in Kutai Kartanegara Regency. Policy & Governance Review, 4(2), 99. https://doi.org/10.30589/pgr.v4i2.267
Zhang, T., & Chen, Z. (2025). Thirty years of grassroots governance: changing characteristics of village heads in China. Journal of Chinese Governance, 10(3), 339–366. https://doi.org/10.1080/23812346.2025.2517539
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Aziz Reza Randisa, Rochendi Suryadinata

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish in Journal of Contemporary Local Politics agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Attribution-ShareAlike 4.0 International (CC BY-SA 4.0) License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).


