The Role of Leadership and Local Capital on Village Fund Management

Abstract

The enactment of Law no. 6/2014 in Indonesia has raised complex issues regarding the management of Village Fund. On one hand, Village Fund (local term: Dana Desa) gives hope for a more meaningful development in the village, but on the other hand the unpreparedness of human resources to manage the Village Fund has caused some problem. Therefore, the role of leadership and local capacity are parts of the solution to village fund management. Several important findings in the management of Village Fund were obtained using quantitative method as the main method in this research. First, the role of leader has a strong influence on planning, implementation, and performance of the program. Second, local leaders are required to have strong characters which can be a role model, fulfill promises, and work hard, and actively encourage ideas as well as providing social solutions for the community. Third, social capital as part of local capacity in the form of mutual cooperation (local term: gotong royong), caring, and mutual trust is able to survive in the village as part of the solution for Village Fund management.