Impact Analysis of the Village Fund Allocation (ADD) Toward Economic Community (Case Study on the Rural District of Namlea Siahoni), Buru Regency

Abstract

Rural development is the subject of development, as the movement of people in carrying out development based on the awareness to improve life better, given more than 60% of Indonesia's population lives in the village. The position is a strategic village a capital base that must be understood as a whole and integrated, both in terms of strengths, weaknesses, opportunities and constraints, as well as relationships with strategic environment, regional, national and international. Strategic implications of independence of the village in the welfare society is still a big question, because the village government's ability to use the budget. This study intends to investigate whether the allocation of funds village (ADD) to contribute to the economic empowerment. With institutional economics approach, the findings of this study are: Directional distribution of ADD for this can be seen from the reality that most of the village allocates its budget ADD to repair /improvement of physical roads, buildings, irrigation. Low contribution in encouraging community development and very little village which directs its budget for financing ADD more productive example BUMDes formation, Village Bank, and the Village Market. Capital revolving loan without interest for the development activities of small and medium enterprises as well.