1. THE SHIFTING PARADIGM ON THE VILLAGE DEVELOPMENT IN INDONESIA Anwar Sanusi General Secretary of Ministry of Village, Development of Disadvantaged Areas and Transmigration

2. The Village in National Development Context

3. MAP OF VILLAGES IN EACH PROVINCE (According to Permendagri No.39/2015) Aceh 6474 Sumut 5389 Sumbar 880 Bengkulu 1341 Kepri 275 Jambi 1398 Riau 1592 Babel 309 Sumsel 2817 Lampung 2435 Banten 1238 Jateng 7809 Jabar 5319 DIY 392 Jatim 7723 Bali 634 NTB 995 NTT 2931 Kalbar 1908 Kalteng 1434 Kalsel 1864 Kaltim 833 Kaltara 447 Gorontalo 657 Sulut 1491 Sulteng 1838 Sulbar 576 Sulsel 2253 Sultra 1820 Malut 1064 Maluku 1191 Papua 5090 PaBar 1628 Number of Villages 74.093 Number of Villages 74.093

4. CONDITIONS OF VILLAGES IN EACH PROVINCE #2 NOPROVINCEDISADVANTAGED VILLAGES DEVELOPING VILLAGES DEVELOPED VILLAGES 1 ACEH 1.9974.39186 2 SUMUT 2.0023.29988 3 SUMBAR 5673985 4 RIAU 2811.27140 5 JAMBI 1911.17631 6 SUMSEL 6562.13427 7 BENGKULU 3449925 8 LAMPUNG 3482.01077 9 KEP.BABEL 122889 10 KEP. RIAU 951764 11 JAWA BARAT 974.621601 12 JAWA TENGAH 1237.021665 13 D.I.Y 266126 14 JAWA TIMUR 2076.823693 15 BANTEN 1581.02159 16 BALI 6530100 17 NTB 3691742 NOPROVINCEDISADVANTAGED VILLAGES DEVELOPING VILLAGES DEVELOPED VILLAGES 18 NTT 1.5461.4022 19 KALBAR 96592023 20 KALTENG 58683810 21 KALSEL 3901.45717 22 KALTIM 19361921 23 KALUT 3181263 24 SULUT 2751.20312 25 SULTENG 5001.3309 26 SULSEL 2851.93632 27 SULTRA 6851.1332 28 GORONTAL O1035459 29 SULBAR 2153592 30 MALUKU 73644114 31 MALUKU UTARA6304294 32 PAPUA BARAT1.4411861 33 P A P U A 4.6984155 NASIONAL 20.17551.0142.904

5. MAP OF VILLAGES’ CONDITIONS ACCORDING TO VILLAGE DEVELOPING INDEX (IPD) IN THE YEAR OF 2014 #3 Disadvantaged Rural Areas Developing Rural Areas Provincial Boundary Region of PAPUA: Disadvantaged Villages: 91.00% Developing Villages: 8.91% Developed Villages: 0.09% Region of MALUKU: Disadvantaged Villages: 60,60% Developing Villages: 38,60% Developed Villages: 0.80% Region of SULAWESI: Disadvantaged Villages: 23,89% Developing Villages: 75,34% Developed Villages: 0,77% Region of KALIMANTAN: Disadvantaged Villages: 37,80% Developing Villages: 61,05% Developed Villages: 1,15% Region of NUSA TENGGARA: Disadvantaged Villages: 40,10% Developing Villages: 58,78% Developed Villages: 1,12% Region of JAWA-BALI: Disadvantaged Villages: 2,56% Developing Villages: 87,74% Developed Villages: 9,70% Region of SUMATERA: Disadvantaged Villages: 26,11% Developing Villages: 71,92% Developed Villages: 1,97% Sources: Potensi Desa in 2014 (processed) & Permendagri 39/2014 (number of villages) Developed Rural Areas Total: Disadvantaged: 20.175 (27,23%) Developing: 51.014(68,85%) Developed: 2.904 (3,92%)

6. Strategic Issue of Developing Villages 1. High isolation of rural areas; 2.Limited supply of public services and minimum basic services in rural areas; 3.Low supply of supporting infrastructure for rural productivity; 4.Poverty, high rate of unemployment, and economic vulnerability of rural communities; 5.Development Village Index (IPD) classifies the type of Villages into three, i.e. Disadvantaged Villages, Developing Villages, and Developed Villages. Nationally, the Distribution Pattern of Villages are: ◦ Disadvantaged Villages which are 19.944 villages (26,92%); ◦ Developing Villages which are 51.127 (69%) villages; and ◦ Developed Villages which are 3.022 villages (4,08%) 9. By total of 74 093 villages in accordance with Permendagri 39/2014 Target to achieve in 2019 are a reduction of 5000 Disadvantaged Villages and an increase in the amount of 5000 Developed Villages.

7. THE HUMAN RESOURCES CAPACITY IN THE VILLAGE Human Resources (HR) in the village can be seen from the Education, gender and age of the village administrators. Uneducated Not completed primary school/ equivalent Primary school graduated/ equivalent Secondary School graduated/ equivalent High School graduated/ equivalent Associate Degree Bachelor Degree Master Degree Doctoral Degree 82997920931124045137232014488163416 Gender of the Village Chief The average age of the Village Administrators MaleFemale The average age of the Village Chief (years of age) The average age of the Village Secretary (years of age) 74,251.00 4,485.00 44.79 43.00 1. The highest education level achieved by the Village Chief 2. Gender and the average age of the Village Chief

8. The essence of the New Law on Village (UU No 6/2014) 1.Governance system with New Law on Village (recognition to the indigenous tradition and values) 2.Planning Develompent Mechanism 3.The Village Budget 4.The Responsible Ministries on Village Affairs and Funds

9. GOVERNANCE SYSTEM ON VILLAGES Village Meetings (Musdes) (Clause 54) Head of Village (Clause 25 – 53) Village Consultative Institution (BPD) (Clause 55 -65) Rural Society Village Institutions (Services) The Committee (Ad-hoc) Rural Community Affairs (BUMDes) Community of Special Interest Representatives of Regional Area Village Medium Term Development Plan (RPJM) and Village Government Work Plan (RKP) Villagel Budget Village Regulation Government Performance Cooperation Village Medium Term Development Plan (RPJM) and Village Government Work Plan (RKP) Villagel Budget Village Regulation Government Performance Cooperation Rural Medium Term Plan Rural Assets Strategic Affairs Rural Medium Term Plan Rural Assets Strategic Affairs Governance Principles Check and balances between the Head of Village and the Village Consultative Institution Democracy of Representative + Consultative The process of participatory democracy through village meetings (Musdes) Direct Election Democratic Election Indigenous Affairs

10. Village meetings: Digging the indigenous values and customs Pulakek adalah salah satu jorong di Solok Selatan. Di sana Terkenal dengan 1000 Rumah Gadang dan banyak wisata alam yang indah. Jum’at Malam adalah hari pertemuan warga Pulakek di mana melibatkan pemerintah nagari, (Musdes pembagian air pada kelompok tani di Desa Mandirancan Kec. Kebasen – Banyumas)

11. The Village Development Planning Mechanism Village Government VILLAGE MEETINGS Village Consultative Bodies (BPD) Village Community/ Societies Village Medium Term Dev. Plan (RPJMDes) Program/Activ ities Village Budget Village Government Work Plan (RKP Desa) Central Government (Ministries/Non Ministrial Agencies) The Ministrial/Non are incorporated to RPJM Desa Activities Financing Activities Accompan iment

12. THE VILLAGE BUDGET Village Funding National Budget Allocation DISTRICT/ CITY Rural RPJM & Rural Budget (1) Net income, assets, self- help and participation, mutual aid, and other income of the village PROVINCE (7) Other legal incomes Financial Support from the Provincial Budget (3) Minimal 10 % of the local taxes and retributions (4) Minimal 10% Balance Fund after deducting the Special Allocation Fund ( DAK) (5) Financial Support from the Regional Budget Program of the Institution Village Decree No.6 Tahun 2014 Village has a greater authority in planning, budgeting, and implementation of rural development based on the principle of Recognition and Subsidiary implication (6) Grants and donations are not binding Development of Village Clause 81 (5): Sectoral program is informed to the Village Government to be integrated within Transferrable Funds Program of the Institution (2) Village funds from the state budget (10% of the gradual transfer of funds Regions) is transferred through Regional Budget Part of the Fund Balance Clause 72 (1 a) Clause 72 (1 b) Clause 72 (1 c) Clause 72 (1 d) Clause 72 (1 e) Clause 72 (1 f) Clause 72 (1 g) Clause 79 (6) Programs of the Central Government and / or the Local Government which its implementation is coordinated and / or delegated to village

13. The Village Revenues (UU 6/2014) Allocation SourcesCalculation APBN Allocation (Art 72:1b), that coming from National spending by effecting all the programs based on villages equaly and fair. Village Funding (Dana Desa, Art. 72:2) 10% of Local Transfer Fund that will be transfer gradually. Village Funding Allocation (ADD), apart of the balance fund that received by the local government (Art 72:1d) 10% of the balance fund of local government – Special Allocation Fund (DAK) Apart of Local and Retributiobn Tax At least 10 % of the total tax and retribution on Local Budget Other sources could be from village revenues (PADes), Grant from District and municipalities, and unbinding donations

14. Village Revenues Plan 2015 (Perpres N0 36/2015) No.Allocation SourcesCalculation A.State Budget (APBN) Transfer Funding Village Fund 643,8 T 20,7 T B.Local Budget (APBD) Balance Fund – DAK Village Fund Allocation 462,9 T 46,3 T CApart from Local Tax and distributionAt least 10 % DGrant from District/Municipal Total A and B66.9 T

15. Village Funding Disbursment Progress from APBN (July 8, 2015) Total Village Funding (Rp) APBN 9,006 T APBN-P 20,766 T 434 Kab/Kota 8,1 T From 8, 31 T First Phase Disbursment 97.44 % 434 Kab/Kota Disbursement Plan: 40 % (1), 40% (2), and 20% (3)

16. Division of Authority in the Management of Village Funds MINISTRY OF FINANCE MINISTRY OF HOME AFFAIRS MINISTRY OF VILLAGE, DISADVANTAGED AREA AND TRANSMIGRATION  Alocate Village Fund on the National Budget  Facilitate on the regulation on the distribution of Village fund  Establish the general guidelines and priorities for the use of the Village Fund (prioritas penggunaan dana desa)  Determine the amount of funding allocation for each district/city  Strengthen the capacity of village officials (aparat desa)  Village Fund assistance at the district, sub-district and local region of village  Disburse the funds in each district/city  Facilitate on the management of Village Fund  Enhance the assistance capacity  ARRANGEMENT OF THE POLICIES TO VILLAGE FUND IMPLEMENTATION  MONITORING, REPORTING AND EVALUATION

17. VILLAGE AS THE FUTURE OF INDONESIA:

18. Future Paradigm of Village Development 1.Limited infrastructure of basic services (education, health and economy); 2.Limited livelihood, mostly Agriculture; 3.Fillers Urbanization-the Big City; Disadvantaged compared to the City; 4.Lack of human resource capacity; 5.Requires support from the higher authority; 6.Limited fund to develop the village, through Budget 2013: 1,600 T Budget, the village only received 2.6% with the details of the total state budget for 72 944 village = 42 T, indirectly to the village = 32 T, and direct to the village = 10 T through PNPM;. Future Construction of Village Being advanced, developed, and prosperous without losing their identity

19. THE PURPOSE OF VILLAGE DEVELOPMENT RURAL DEVELOPMENT Improve Rural Community WELFARE Improve the QUALITY OF LIFE POVERTY REDUCTION through Compliance of Basic Needs Development of Village’s Facilities Development of Village’s Infrastructure Development of Potential Local Economy Utilization of Natural Resources and Sustainable Environment (Clause 78 UU Desa) SUSTAINABLE DEVELOPMENT OF VILLAGE STRONG, ADVANCED, DEVELOPED, AND DEMOCRATIC VILLAGE Phases: Plan Implementation Supervision Emphasizes togetherness, Kinship, mutual cooperation in order to realize Mainstreaming of Peace & Social Justice

20. SUPPORTING THE NATIONAL PROGRAM OF DEVELOPING VILLAGE (by Kemendesa according to RPJMN Tahun 2015-2019 ) 1.Launch the “SELF-DEVELOPED VILLAGE MOVEMENT” on 3.500 villages in 2015; 2.MENTORING and STRENGTHENING the capacity of institutions and apparatus of the 3.500 villages in 2015; 3.ESTABLISH and develop the 5,000 Village Enterprises (BUMDes); 4.REVITALIZE rural market in 5.000 villages/rural areas; 5.DEVELOP the infrastructure of village and rural roads to support rural priority commodities in 3.500 self-develop villages; 6.PREPARE the implementation of incremental allocation of village funds of the maximum of Rp. 1.4 billion per village; 7.DELIVER capital assistance for cooperatives in 5.000 villages; 8.Pilot Project on public services system by online network on 3.500 villages 9.”save villages” in the border and outer islands area.

21. Software Local Government Capacity: Institutional, Financial, and Officlal Hardware Infrastructure and Facilities Integration Scheme of Central-Regional-and Village Government in terms of Public Service Central Government Competence Lack of monitoring, evaluation, reward and punishment Related regulations have not been aligned with the planning and budgeting SPM in the area lack of socialization and regulations concerning Management Control System (SPM) Operational guidelines and technical guidelines of the institution can not be applied in the area Regional Government Competence Financial management and funding by local governments are still low Low commitment to the region in implementing SPM The capacity of local government officials are still low SPM has not been integrated in the local development plan (Village RPJM, RKP, strategic plan) Village Government Competence Financial management and funding by local governments are still low Low commitment to the region in implementing SPM The capacity of local government officials are still low SPM in Village RPJM and Village Budget

22. DESIGN OF RURAL DEVELOPMENT TO BE A SUSTAINED VILLAGE AND ABLE TO FORM A NEW URBAN AREA High Self Resilient Village Socio-economic resilience and mechanisms to survive for themselves and the people in the surrounding villages. Developed in everything: food, energy, water, electricity, etc. Resillient Village Economically have the resilience and resistance mechanisms that are built to survive the economic crisis, social and living environment for all residents of the village. Vulnerable Village Able to only survive for its own region Vulnerable to Social-Economy and Environment Shock Advanced Sustainable Village Able to drive the economy for the area / surrounding regions If it has urban function  it can be a new urban area Sustainable Village New Urban Area Pengembangan Desa Secara Sosial, Ekonomi Dan Ekologi

23. The Current observation on Village Fund Disbursement Most of the villages that has been received the Village Fund on Phase I, by condition: a)The head of village has not use yet the village funds due to inavailability of the technical guidance that shuld be provided by the local government; b)Some head of villages that has disbursed and used the village fund without follow the mechanism as stated on Village Law

24. Why still very Low? Why still very Low? 1.Multi interpretation on some ministerial regulation; 2.The document for disbursement consider too administrative and complicated; 3. Duplication in the village fund accountability report (Permendagri dan PMK); 4.Unavailability on the procurement for the good and services in villages; 5.The limitation for the village companion (currently 1 village companion serves 3 villages).

25. 25 Thank You Desa Membangun Indonesia