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Jakarta Post

Ponggok, example of independent village financially

Anton Hermansyah (The Jakarta Post)
Klaten, Central Java
Thu, August 24, 2017

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Ponggok, example of independent village financially From a distance, Finance Minister Sri Mulyani talks to Ponggok village head Junaedi Mulyono at the Umbul Ponggok water park in Klaten regency, Central jakarta on Aug. 23. (Antara/File)

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mid rampant reports of alleged corruption involving the Village Fund, Ponggok in Klaten, Central Java, is an example of a financially independent village, even before it was slated to receive funds from the government program aimed at improving the welfare of Indonesia’s rural residents.

Ponggok, with a total population of 2,300 people, has its own village-owned enterprise (BUMDes) that earned a net income of Rp 10.3 billion (US$771,478) last year from various businesses, including tourism.

Village head Junaedi Mulyono said Ponggok used its share of the Village Fund, which became available in 2015, to turn Umbul Ponggok swimming pool into a modern water park, which has become an icon of the village, and to repair roads and the drainage system.

Read also: KPK, ministry 'flooded with complaints' on allegedly embezzled village funds

"The BUMDes also allowed villagers to open shops at Umbul Ponggok. Rented life jackets and other swimming equipment are also provided by villagers," Junaedi told Finance Minister Sri Mulyani Indrawati, who visited Ponggok on Wednesday.

Junaedi said he had targeted to increase the BUMDes’ net income to Rp 15 billion this year and planned to distribute its dividends among the villagers.

"All of our people have bank accounts and ATM [cards], so we can disburse the dividends through bank transfers," Junaedi added.

When the BUMDes was established, its main business was selling fishery equipment. In 2012, the firm constructed the Umbul Ponggok swimming facility by converting an old water spring into a large pool.

Sri Mulyani was impressed by Ponggok’s achievements, saying that the village served as a success story in managing village funds. (bbn)

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