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Allocation of Village Funds for BUMDES and its contribution to village own-source revenue with the management process as a moderating variable

Ambarriani Anastasia Susty, Sunarni Christina Wiwik, Budiharta Pratiwi

Annals of Computer Science and Information Systems

2022

Vol. 34

81--85

Law No. 6 of 2014 concerning villages confirms that the Government of Indonesia fully encourages the development of village social and economic independence. The COVID-19 pandemic that has occurred since 2020 has had a very significant impact on the village economy. Therefore, in 2022, the Minister of Villages, Development of Disadvantaged Regions and Transmigration issued Regulation (Permendesa) Number 7 of 2021 concerning the priority use of village funds in 2022 (https://nasional.kompas.com 14/11/2021) which consists of three main points, one of which is: national economic recovery in accordance with village authority. Opportunities to use village funds to develop Village Owned Enterprises (BUMDES) are intended to improve village own-source revenue. This study aims to test whether the amount of village fund allocation for BUMDES influences the increase village own source revenue with the moderating variable of village fund management. The results of the study revealed that the total allocation of village funds did not have a direct contribution to the increase in village own-source revenue. However, with moderated BUMDES management, the total allocation of village funds has a positive contribution to the increase village own-source revenue.