Empowered by Village Funds

Kemiren village formerly only served as a route for tourists to cross over to Mount Ijen. Village funds have turned Kemiren into a tourist destination at the foot of Ijen.

KOMPAS/ANGGER PUTRANTO

Diners enjoy traditional Osing food and drinks at Pesantogan Kemangi in Kemiren village, Banyuwangi, East Java, on Monday (2/12/2019). Pesantogan Kemangi is a collection of traditional food stalls that gets working capital from the Village Fund and its management is under the auspices of a village-owned company, BUMDes Jolo Sutro.

The first village fund was enjoyed by Kemiren village, Glagah district, Banyuwangi, East Java, in 2015. At the time, a total of Rp50 million was allocated to build a food stall based on a traditional concept, going by the name of Pesantongan Kemangi.

Pesantongan is the Osing (ethnic Banyuwangi) language for a stopover spot. It was certainly hoped that tourists would not only pass through Kemiren but also take a break in the village.

When it was first opened in 2015, Pesantongan Kemangi was managed by the neighborhood youth association. Kemiren’s Village-Owned Enterprise (BUMDes) had not been established. Only a year later was BUMDes Jolo Sutro set up to manage the business unit with village fund capital investment.

“The village fund capital investment in Pesantongan Kemangi was realized only once to start the business. Later the business unit was capable of growing independently. Today it can produce Rp2.5 million in net profit monthly,” said chairman of BUMDes Jolo Sutro in Kemiren, Meiris Kurniawan, last week.

The village fund capital investment in Pesantongan Kemangi was realized only once to start the business.

People living in Kemiren have benefited from the region’s booming tourism to build their village economy. Since the annual allocation of village funds, they now own 55 homestays, offer tourism packages and arts and culture educational facilities.

Meanwhile, in Malang, East Java, village funds have converted Pujon Kidul village in Pujon district, Malang regency, into a new tourist center. With village funds as their capital, residents and the Pujon Kidul village head built a café in the middle of paddy fields. The café records an annual income of Rp1.8 billion.

KOMPAS/DEFRI WERDIONO

The atmosphere of Sawah Cafe in Pujon Kidul Village, Pujon District, Malang Regency, East Java, Monday (12/12/2019).

Café Sawah is known for its diverse selfie points that are attractive and Instagramable, with gardens and predominantly bamboo traditional buildings as their backgrounds. This café also offers various kinds of cuisine with village farm and livestock products as their main ingredients.

“When I visited here for the first time, there were just a small number of stalls. Now there are many more, spread over a wide area,” said Berta, a tourist from Lumajang, East Java.

Café Sawah has the capacity to absorb up to 700 workers, all from Pujon Kidul. Of the total, 167 people are BUMDes employees managing the café.

Village funds have not only set the economy in motion but also made social and cultural contributions.

Pujon Kidul village head Udi Hartoko said this year that Café Sawah and tourist parking lots had contributed village revenue of Rp1.8 billion, larger than the amount in 2018, which was still Rp1.3 billion, and in 2017, only Rp167 million.

“It’s the net income earned by the village. If combined with that going to the public, the total is even bigger. Café Sawah’s turnover in 2018 reached Rp13 -14 billion under village management,” he added.

Village funds have not only set the economy in motion but also made social and cultural contributions. In Malang, since 2018, several villages have initiated the allocation of part of their funds to help finance the transportation of students and teachers of a pilot school in Ngantru village, Malang regency. The educational funds are allocated by Ngantru village, Banjarejo village and Banturejo village.

With the funds, children with special needs from disadvantaged groups can continue to receive schooling. They don’t have to go to far-off cities to attend school.

KOMPAS/DEFRI WERDIONO

The view of Sawah Cafe in Pujon Kidul Village, Pujon District, Malang Regency, East Java, Monday (12/12/2019).

Potential problem

When village funds were allotted for the first time in 2015, it was not without any problems. Locals, village administrations and regencies were staggered. The village administration, for instance, did not yet fully understand how to draw up the village budget of income and expenditure. The high value also induced vulnerability to deviation.

Banyuwangi Regent Abdullah Azwar Anas in the first year of village fund disbursement opened a village fund clinic at the Village Community Empowerment Office. This clinic offered 24-hour consultations about village fund utilization and accountability.

While village funds have empowered communities in a number of villages in Banyuwangi and Malang, this has not been the case in Konawe, Southeast Sulawesi. In Konawe, irregularities have allegedly occurred. Nonetheless, village funds in Konawe continue to be utilized for village development, such as that in Arombu Utama village, Latoma district. The funds are spent on repairs of residents’ homes and the drainage system. Former Acting Arombu Utama Village head Murad Barahima said his village obtained in 2017 Rp748 million, which was used to add zinc sheets to the roofs of residents’ houses and build water drains 600 meters long as well as roads for farm businesses.

Secretary-general of the Villages, Disadvantaged Regions and Transmigration Ministry, Anwar Sanusi, said the program for village fund distribution was meant to support development from the regional periphery and promote people’s welfare. (JAL/BKY/ILO/KEL)