Human Resource Issues in Village Fund Policy for VOEs Development (Case in Yogyakarta, Indonesia)

Abstract

Objectives: This study aims to (1) determining the management of village funds policies in developing VOEs, (2) determine the level of effectiveness of village fund management policies for the development of VOEs, and (3) determine supporting and inhibiting factors for the effectiveness of village fund management for VOEs development.

Method / Analysis: This research uses qualitative methods using a case study approach. Data were collected through observations, document studies, and interviews.

Findings: The results of the study showed that First, village fund management runs smoothly, reflecting transparent and accountable village financial management. Second, the selection of VOEs business units is not optimal because it does not take village needs into consideration. Pertashop is considered environmentally friendly, but its turnover is still below target. VOEs management is also weak, especially since profits are not enough to reinvest. Third, inhibiting factors include less effective communication, human resources are not yet professional, there is no commitment from the VOEs management to the village government, and work procedures are not adequate. Meanwhile, supporting factors include village government support. It is hoped that this study can provide contributions such as strengthening village fund management policies, especially in development of VOEs as an effort to increase the welfare of village communities in a sustainable manner.