How village funds influence economic development in South Papua, Indonesia

Abstract

This quantitative study aims to determine the elements that influence the efficiency of village funds in terms of social and economic empowerment. Individualized solutions based on the demographics of the village, including financial support, business partners and markets, human resources, sociocultural ecology, and natural resources, are required for economic development. By collecting data from 179 village heads in South Papua province, Indonesia, this study determines that several elements substantially impact the economic empowerment of communities. However, these factors have not been fully optimized to attain economic independence of villages. With the assistance of regular support from the district government, most village heads are graduates who can effectively plan and implement programs. The distinctive qualities of a community are considered in sociocultural development programs. The development of natural resources and tourism are continuing processes that require market access and infrastructure improvement. Human resources are promising, and sociocultural initiatives align with community requirements. Therefore, addressing the problems associated with market access and resource development is vital. Village funds should promote the use of resources in a sustainable manner; however, there are still obstacles to engaging corporate land users, which calls for further investigation.

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