Government To Disburse 40 Percent Of Village Funds In September

Jakarta (Antara Bali) - Until September, the government has targeted to distribute village funds amounting to around 40 percent of the ceiling set in the Revised State Budget (APBN-P) 2015.

"The first phase of the village funds should be entirely disbursed this month," Minister of Rural Development of Disadvantaged Regions and Transmigration Marwan Jafar noted here on Monday, (September 7).

The ceiling for village funds in the APBN-P 2015 is Rp20.7 trillion, which will be distributed in three stages.

The first stage of distribution will be carried out in September 2015 and would amount to 40 percent of the ceiling stated in APBN-P 2015.

The second distribution will be conducted in October 2015, and the third will be in November 2015.

"The amount to be distributed during the second and the third stages will be 40 percent and 20 percent of the ceiling respectively," the minister stated.

Currently, the minister noted that several regulations of the mayor and sub-district head are hampering the distribution of village funds.

"The main problem was not the central government but the local administration," the minister remarked.

Therefore, the minister continues to coordinate with the mayors and sub-district heads to overcome the delay in the absorption of the funds.

"This week, we will formulate the joint ministerial decree (SKB) to revise all existing regulations," the minister stated.

He pointed out that the SKB will facilitate the disbursement of funds, which is conducted by the local government.

With regard to the legal sanctions, the minister has coordinated with the prosecutors and police.

"Matters concerning policies cannot be criminalized. I have conveyed it through the media and during a meeting with the sub-district heads," he remarked.

The minister revealed that irrigation and road development were the two priority programs for the utilization of village funds.

"The strengthening of the rural economy can vary. The local government can develop farms and crafts and help small and medium enterprises/businesses as part of its efforts to boost economy in the local regions," the minister emphasized.

Earlier, Finance Minister Bambang Brodjonegoro stated that the village funds allocated for 2015, amounting to Rp20.7 trillion, can be maximally absorbed by the end of the year.

"In the first stage, the central government has transferred 90 percent of the funds to 90 percent of the over 74 thousand villages in Indonesia," the finance minister noted. (WDY)