Background, content, implications and next steps (pnpm support facility) hans antlov

1. Law 6/2014 on Villages
Background, Content,
Implications and Next Steps
PNPM Support Facility
May 2014
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2. Law 6/2014 on Villages
• Villages have the constitutional right and authority to regulate and
manage government affairs, community interests, and customary and
traditional rights (UUD para 18b.2) – MoHA supported a separate
Village Las as part of the paradigm of villages as “self local-community”
• Compromise between village as self-governing community and lowest
level of government
• Incorporates a number of key CDD/PNPM principles, including
participatory village planning, community implementation of village-
level projects, inter-village collaboration and improved accountability
mechanisms
• Providing substantially larger direct allocations to villages (average
$110,000 per village per year), a mix of APBN/APBD
• With the Village Law in place, communities will assume greater
responsibility and control over village affairs, and be able to meet
more of their development needs.
• The Village Law will become the new master framework for village
development and community empowerment
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3. Governance
• “Village Government includes Village Head…who is assisted by Village
Apparatuses” (Para 25). Separation of powers
• “A Village Head shall have the task to run the Village Administration, execute
Village Development, provide Village guidance, and empower the Village
community” (Para 26). Similar to in the past.
• “The Village Consultative Council shall have the following functions:
– discuss and agree Draft Village Regulation together with the Village Head;
– accommodate and channel Village community aspirations; and
– conduct oversight of the Village Head’s performance)” (para 55)
• “Members of the Village Consultative Council shall be representatives of Village
residents based on territorial representation, the filling of which shall be done
democratically” (para 56). Legislative powers, and elected.
• “The Village Assembly is a consultative forum attended by Village Consultative
Council, Village Government, and Village community elements to deliberate on
strategic matters in Village Governance (para 54): including Village regulation;
Village planning; Village cooperation; Village investment plans; formation of
Village-Owned Enterprises; addition and release of Village Assets; and
extraordinary events” (para 55). Adopted from PNPM.
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4. Desain Kelembagaan Dasar Tata Kelola Desa
Musyawarah Desa
Kepala Desa BPD
Warga/Masyarakat
Perangkat
Desa
Panitia (ad-hoc)
BUMDes
Klp. Special Interest
Perwakilan Bagian
Wilayah Desa
• RPJM-Desa dan
RKP-Desa
• APB-Desa
• Peraturan Desa
• Kinerja Pemerintah
• Kerja Sama
• RPJM-Desa
• Asset Desa
• Hal-hal
Strategis
Prinsip Tata Kelola Desa
• Check and balances
antara Kepala Desa
dengan Badan
Permusyawaratan desa.
• Demokrasi perwakilan +
permusyawaran.
• Proses demokrasi
partisipatoris melalui
Musdes
Dipilih
langsung Dipilih secara
Demokratis
Lembaga
Kemasyarakatan/
Adat
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5. Financing
• “The budget allocation designated directly to the Village [from APBN] is
determined to be 10% of and outside the Regional Transfer (Transfer
Daerah] (on top), in stages” (para 72.2, elucidation)
• “Village fund allocations [from APBD] is at least 10% from the Balance
Funds received by the District/Municipality in the APBD after subtracting
Special Allocation Funds” (para 72.3)
• In 2014, 10 percent of national budget transfers to local governments will
equal Rp59 trillion and 10 percent of Balance Funds minus DAK equals
Rp45 trillion.
• If divided equally between Indonesia’s 73,000 villages, this would add up to
the equivalent of Rp1.4 billion per village per year. Equals 5.7% of APBN
• In addition, own-source revenues and 10 % of regional taxes
• Consolidated into the village budget, the APB-Desa
• No major additional functions; just funds for development purposes
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6. Provinsi
Dana
Perimbangan
Program/Hibah
RPJMDes & APBDes
Kabupaten/
Kota
Indeks
Indikator
Alokasi
&
Pemanfa
-atan
SKEMA SUMBER-
SUMBER PENDAPATAN
DESA DARI PUSAT
1. DAD: 10% dari DAU + DBH
2. 10% dari bagian dari Pajak
& Retribusi
3. HIbah
Program K/L
APBN
Dana Transfe ke Daerah KL
KEUANGAN DESA
Pendapatan
Asli Sumber Lain
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7. Planning
• “Village Expenditures shall be prioritized to fulfill the development needs
as agreed in Village Assembly and in line with priorities of the District,
Provincial and Central Government. Development needs shall include, but
are not limited to, primary needs, basic services, environment, and
Village community empowerment activities” (Para 74)
• Consolidated into a single RPJM-Desa and RKP-Desa.
• “Village Development planning shall be organized by involving the Village
community. The Village Government shall be obligated to hold Village
Development Planning Consultations.” (para 80)
• “Local Village-scale development shall be implemented by the Village
itself. Implementation of sectoral programs that enter the Village shall be
informed to the Village Government in order to be integrated with Village
Development” (para 81)
• “Desa Membangun” and “Membangun Desa”
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8. Accountability
• Upwards accountability
– Annual Governance Implementation Report to Bupati
– But still very weak upwards accountability - no mention of audits
• Sideways accountability
– Separation of powers – BPD not part of government
– Annual Governance Implementation Information Report to BPD
– BPD can oversee (but not xx), but some way to go make it effective
• Downwards Accountability
– “Village community shall have the right to conduct monitoring of the
implementation of Village Development… including the right to obtain information
regarding the plan and implementation of Village Development.” (para 82:1-2)
– “The Village community shall participate in Village Assembly to respond to the
Village Development implementation report” (para 82:5)
• “Village community empowerment shall be conducted with facilitation in
planning, implementation, and supervision of Village and Rural Area
Development” – Importance of facilitators/pendamping
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9. Other Major Issues
• Rural development and inter-village projects to be funded by
district and provinces, through coordination with villages
• Improved rules for establishing new villages, including
(varying) minimum size of villages
• Customary villages recognized (Desa Adat), with their own
governance arrangements. Mapping done by Pemda;
regulated by Perda.
• Salary to all village officials. Village secretary no longer civil
servant,. 3*6 years period for village head and BPD members
• Responsible Ministry is “Ministry in charge of Villages”, not
necessarily MoHA
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10. Transformational Potential
1. An evolution of PNPM in rural areas to a village development
platform that addresses key GoI and community priorities, such as
basic education and health targets, social inclusion, DRM,
infrastructure, climate change, and rural livelihoods
2. Strengthen links between community and LG planning
3. Advancing a process of local government reform by allowing
villages to be responsible for planning, implementation, monitoring,
and outcomes of village-scale infrastructure and basic services
4. Improved PFM through performance grants to villages
5. Mainstreaming a model where facilitation and technical assistance
from private sector and communities work in partnership with
government for village development and delivery of public services

11. Risks and Challenges in
Implementation
1. The PPs are not in-line with the UU
2. Corruption and poor quality of outputs
3. Elite capture, social exclusions and community conflicts
4. Huge variation in capacity and size of villages in
Indonesia
5. Sectors and SKPD are crowded out and withdraw from
village development
6. Changing the role of 15,000 facilitators from project staff
to pendamping desa
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12. What’s Happening Now:
Implementation
• Government regulations (PP) by May 2014
– PP on general village governance (by PMD)
– PP on village financing (by DJPK)
• Implementing guidelines (Permen) by Dec 2014
• Limited roll-out in 2015, full implementation in 2016
• Design of a national strategy for village capacity development
and support system (incl. facilitators)
• Draft presidential regulation on Community Empowerment-
based Poverty Alleviation Programs (PKPM, future PNPM?)
• New implementing arrangements for the Village Law and
PKPM
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13. Implications for the Donor
Community
• Possible substantial consequences for sectoral
projects
– Realignment of support – must coordinate with village
government
– Support key line ministries in village-level interventions
– Coordinating with TNP2K to incorporate poverty lens
• Opportunities
– Existing tools in sectoral and governance incorporated into
the PP
– Links to primary health care and education – performance-
based village grants?
– Rural to urban linkages and agricultural livelihoods
– Climate change responses, NRM & Environmental
mainstreaming
– CDD-based post disaster reconstruction
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14. National Village Forum
Magelang, 8 February 2014
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