Jokowi Say Village Fund to Increase Local Economy

JAKARTA - President Joko Widodo (Jokowi) said that the village fund disbursement is aimed at increasing local economy by providing jobs and assuring money circulation in regions.

    

"If that would happen, Rp187 trillion would be circulated in villages, economic growth in rural areas would increase, and consumption would increase," the president stated, at a national meeting on local and regional administrations here, on Monday.

    

Jokowi noted that local economy could be activated if development projects in villages could recruit local villagers and construction material supplies were bought from local shops.

    

The village fund should not return to cities, but it must be used to activate village economy, he added.

    

"Cash labor-intensive program should be implemented in projects using village funds. Cash labor-intensive program would employ local villagers, paid daily or weekly, thus creating a lot of jobs," Jokowi remarked.

    

The government had disbursed Rp47 trillion and Rp60 trillion of village fund in 2016 and 2017, respectively. It would disburse another Rp60 trillion of village fund in 2018.

    

The president expressed hope that the fund could be increased in 2019. He called on village administrations to use the fund for village development under public monitoring. (*)