ICW researcher Wana Alamsyah said there was a phenomenon it called “local elite capture” in which leaders at the village level misused village funds disbursed from the central government.

According to the report, village funds were among of the top five sectors prone to corruption. In 2016, the government allocated Rp 47 trillion (US$ 3.5 billion) for the village fund program.

The number of corruption cases at local government levels was also on the rise owing to a lack of participation from villagers and poor monitoring, Wana said.

“Villagers should be involved in the process of planning and managing the village funds to prevent corruption,” he said.

(Read also: Village economy grows by 12 percent: Minister)

Another ICW researcher, Febri Hendri, said the incompetence of village officials was also one of the reasons behind the “local elite capture” phenomenon.

"Many village officials are still lacking adequate capability in managing village funds, as they have no clear programs to develop their villages," he said. (rdi/bbs)

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