Minister: Villages Thrive During Pandemic

TheIndonesia.id - The Ministry of Village, Development of Disadvantage Region, and Transmigration said villages in Indonesia have thrived significantly during the pandemic and are able to become the backbone of national economy in the last two years.

According to Minister Abdul Halim Iskandar, the verdict is made after several positive achievements were found in the Ministry’s study.

“It must be acknowledged that village economy during the COVID-19 pandemic has been able to become a buffer for national economy. This statement isn’t merely empty words but is supported by measurable indicators,” Iskandar said in a statement on Thursday, December 30.

Increased per capita income, controlled open unemployment rate, and the considerably maintained fluctuation in poverty at village level are among some of the factors taken into account by the Ministry.

Village fund is considered as one of the factors that helped driving economic resilience in villages. Allocated by central government, village fund significantly adds to village budget which is utilized for the development of village.

In 2014, before the establishment of village fund, on average, village budget was at US$23,500 per village. However, after village fund was introduced, the average village budget was US$50,000.

And in 2021, the average figure exceeded US$114,000 per village.

The high budget, in return, allows economic stimulation, and its success can be seen from the increased per capita income in villages despite contractions caused by the pandemic. The average monthly income for each family is now at US$69, increasing slightly from US$63.

“This increase is due to the cash intensive work programs. Besides, there are a number of infrastructure projects which is independently managed within the village where the workers are locals, and the budget is also spent on local businesses,” the Minister explained.

Meanwhile, open unemployment rate, though increasing, is still considerably controlled as it’s lower compared to the figures in cities. It increased from 3.92 percent to 4.71 percent, while the rate rose from 6.29 percent to 8.98 percent in cities.

Lastly, the Gini coefficient, which measures economic inequality, declined slightly in villages – from 0.320 in 2019 to 0.315 in 2021, the Ministry confirmed.

Iskandar is optimistic that villages will only continue to grow in the coming years, especially if his office manages to realize the 2022 technological transformation that will reduce the number of villages without or with poor internet connection.