The Minister of Villages, Development of Disadvantaged Regions, and Transmigration, Yandri Susanto, recently highlighted that as of 2024, there are still around 10,463 underdeveloped and severely underdeveloped villages in Indonesia.
These villages are primarily located in regions like Papua, Papua Highlands, Central Papua, West Papua, and Southwest Papua.
To address this, the Ministry of Villages is actively encouraging private sector involvement in rural development. This initiative aims not only to harness local natural resources but also to engage private companies in uplifting these communities.
“There are still over 10,000 underdeveloped villages, even as we approach 80 years of independence,” said Yandri, quoting kabarbursa.com, in a Working Meeting with Commission V of the Indonesian House of Representatives (DPR) at the Parliament Complex in Senayan, Jakarta, Thursday (11/7/2024).
In these underdeveloped villages, many residents lack access to basic needs, including electricity and essential infrastructure. Currently, 36 districts in Indonesia are classified as underdeveloped villages.
To gain a clearer understanding of the issues hindering development in these areas, Yandri plans to conduct field visits, stating his commitment to finding the issues comprehensively, in line with President Prabowo Subianto’s directives.
“I want to get to the bottom of what’s causing these challenges. I’m prepared to stay in remote areas if needed to see the issues firsthand,” he emphasized.
Meanwhile, Commission V Chairman Lasarus reminded all stakeholders that communities in these areas should also benefit from the local natural resources.
“For example, in mining areas, the forest and mineral resources are utilized, but the villages often only experience the side effects. It’s essential that we address this,” he stressed, quoting antaranews.com.
Yandri emphasized this by stating that future village development will involve private parties who are considered competent. He also admitted that he had firmly reminded the private sector to help with village development for the development and benefit of underdeveloped villages.
Involvement of 400 Companies Through CSR
According to the official website of the Directorate General of Fiscal Balance, Ministry of Finance, the amount of village funds for 2025 has been determined based on Law (UU) Number 62 of 2024 concerning the State Revenue and Expenditure Budget (APBN) for Fiscal Year 2025.
In the APBN Law, village funds for the 2025 budget year are set at IDR 71 trillion, consisting of IDR 69 trillion calculated in the budget year before the current budget year and IDR 2 trillion calculated in the current budget year. The determination of the details of the Village Fund for each village is regulated by the Minister of Finance Regulation (PMK).
Yet Yandri acknowledged that government funds alone are insufficient for optimizing rural development. To bridge this gap, Yandri is advocating for stronger collaboration between the government and the private sector.
He confirmed that a forum has been established to engage around 400 companies through Corporate Social Responsibility (CSR) programs, specifically targeting underdeveloped areas.
During a recent visit to Kamojing Village in Karawang, West Java, Yandri praised the involvement of companies like PT Pupuk Kujang and PT Mandala in developing local economic potential, such as the village’s lake project.
“Relying solely on village funds won’t be enough; collaboration is essential,” he noted.
Lasarus added, he believes that the Ministry of Villages and PDT can require the private sector to contribute to village development through coordination with related ministries, such as the Ministry of Forestry and the Ministry of Energy and Mineral Resources (ESDM).
He emphasized the importance of synergy among these ministries to ensure that private sector engagement in rural development is comprehensive and impactful.
Source: AntaraNews.com, KabarBursa.com
Image : Antaranews
