President of the Republic of Indonesia Joko Widodo advised the entire financial services industry regarding village funds that have a significant impact of economic growth in rural areas.
“The funding of this village is huge if its management is accompanied by financial industries so the money does not come back to Jakarta, it will have an impact on purchasing power, the impact of welfare, the economic impact in the village is very big,” said Jokowi in the annual meeting Financial Services Industry 2018 in Jakarta on Thursday (18/1).
The President also advised that the village funds be used for labor intensive infrastructure such as roads and irrigation. It is also used for the purchase of materials in the village.
“So the money will go on and be saved in the financial services industry in the area, in the BPR so the money will continue there, we want these small ones to jump up, too, this we will continue to connect so we will not forget the in villages, at micro enterprises in villages or in villages, “he said.
The Ministry of Rural Development, Development of Underdeveloped Regions, and Transmigration (Kemendes PDTT) will continue to promote rural economic growth by directing the use of village funds through four priority programs that are self-managed and labor-intensive.
Head of Bureau of Public Relations and Cooperation Kemendes PDTT Bonivasius Prasetya said that based on SKB 4 ministers budget allocation of village funds in 2018 did not change that is Rp 60 trillion to be spread throughout the village. From that budget, projects from village funds must be done on a self-managed basis and a 30 percent budget must be spent on community wages.
“So, the village funds are self-managed by employing the villagers and not using contractors, and they do not violate the rules anymore because the LKPP rules have been made excluded changes that are on projects using village funds done independently by not using contractors,” he said when met after attending the meeting.
On the occasion of the annual meeting, President of Indonesia Joko Widodo gave awards to three prominent insipirators who are considered meritorious in the development of financial inclusion. The three figures are Mohammad Nadjikh from Gresik East Java who has developed fishery clusters, Langgonsari Village Chief, Banyumas Rasin who have developed Village Owned Enterprises (BUMDes) and Mochammad Syaihul who have developed micro-waqf bank.
Nadjikh has inspired the fishing community in Indonesia to become a successful entrepreneur in the field of fisheries and seafood processing by establishing a business in 1994. From his efforts, Nadjikh manages 125. OOO fishermen, 600 UMKM (collectors) and accommodates about 14,000 employees.
Nadjikh chose not to expand his business on fishing using modern large ships with the aim of supporting traditional fishermen, cutting off the poverty chains of fishermen and dependence on middlemen.
Meanwhile, Rasim, who heads the village of Langgongsari, Banyumas in improving the rural economy, Rasim allocated more than 90% of Village Funds in 2017 received to support BUMDes in continuing the development of the Mental Revolution Mini Park.
The funds are used to plant durian seeds Bawor, create underpass agro location, coconut seeds, petai, sugar processing plant, biogas, cattle pen and so on.
Business managed by BUMDes Bulak Barokah is the first gait using Information Technology (IT) and become the appeal of investors.
In addition, Mochammad Syaihul Izzat from Kediri is a financial inclusion inspirator in the field of Sharia Micro Finance Institution. Syaihul is the Chairman of LKM Syariah Berkah Rizqi Lirboyo, one of ten LMK Syariah in early stage of community empowerment program through establishment of LKMS around pesantren.