ABSTRACT

Every year, the government has budgeted a fund for villages. This fund is used to improve the quality of villagers’ life. The data show that this village fund decreased rural equality from 0.34 in 2014 to 0.32 in 2017. With a good fund management system, this achievement is predicted to continually increase in the forthcoming years. The key to success in developing the village is a good relationship between the community in a village and its local government apparatus. The apparatus, here, should have the ability to manage the affairs of the village, including the fund given by the government. The fact shows that most such apparatuses do not have this ability. Therefore, it is necessary to make a capacity-building model for these apparatuses in managing sustainable, transparent, and accountable village funds, so that villagers’ welfare can be protected.