Villages, Disadvantaged Regions and Transmigration Minister Eko Putro Sandjojo has said the village economy has grown by 12 percent in 2016, higher than national growth of 4.8 percent, thanks to the disbursement of village funds.
“Although the village fund was just introduced recently, the contribution from villages to national economic growth has been significant,” said Eko in a press statement on Thursday.
The government disbursed Rp 26.96 trillion (US$2.02 billion) to villages in 2016 compared to Rp 20.8 trillion in 2015.
The direct disbursement of the village fund had boosted economic activity in villages as shown by the increasing economic growth in the third quarter last year, said the minister, adding that the government were strongly committed to boosting economic activity in villages.
The government has allocated Rp 60 trillion for the fund in the 2017 state budget for 74,910 villages across the country.
He said the villages would not only be used for physical development in villages, but also to stimulate the economic capacity of their residents.
“[The fund] includes the establishment of village-owned enterprises (BUMD) to make villages more independent,” he added. (bbn)