House Members: Rural Areas Need to be Pushed Into New Economic Hubs

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Seorang anak menikmati uap di kawasan wisata pemandian air panas yang sedang dikembangkan di Desa Bora, Kabupaten Sigi, Sulawesi Tengah, Jumat (9/10/2020). ANTARAFOTO/Basri Marzuki/wsj. (ANTARA FOTO/BASRI MARZUKI)
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NUSADAILY.COM – JAKARTA – Member of Commission VII of the House of Representatives Rofik Hananto stated, rural areas need to be encouraged in order to transform into a new center of economic and industrial growth in the Archipelago.

“The village is special. The village is a huge but un-managed wealth. In the village there is clean water, clean air and healthy food,” Rofik Hananto said in a press release in Jakarta on Sunday.

According to Rofik, villages in Indonesia qualify to be the center of new economic growth that will continue to grow and as an increasingly loved destination.

Moreover, he reminded that since 2015 there has been a village fund program, in accordance with the mandate of Law No. 6 of 2014 on Villages.

Village funds are given to villages with several parameters, namely population, area and poverty.

Rofik explained that in the period 2015-2018, the village carried out planning. Where village funds are used for training, physical activities and the use of prerasana facilities, and several pilot projects.

Then in 2018-2020, the village began to show the potential of the village and pilots. In addition, empowerment activities are held and towards tourist destinations.

Meanwhile, in 2020-2025, the village is more focused on empowerment and becoming the center of economic growth.

“The village also leads to the industrialization of the village’s potential. One example of a successful village is Rumaida Village in Southeast Maluku,” he said.

MSME Are The Motor of Economic Potential Growth

He argued that MSMEs in rural areas are the motor of growth and new industries based on the economic potential of villages for MSMEs to be able to move up the class through industrialization.

Previously, the Ministry of Villages, Development of Disadvantaged Regions and Transmigration (Kemendes PDTT) recorded the distribution of village funds in 2020 has reached 99.95 percent. With the total funds disbursed amounted to Rp71.1 trillion.

“The biggest uptake was in 2020 since 2015. Its absorption reaches 99.95 percent, probably almost 100 percent,” said Mendes PDTT Abdul Halim Iskandar in a virtual reflection of the end of 2020, Jakarta, Wednesday (30/12).

The achievement, he said, was realized thanks to reform efforts in January 2020 to channel village funds directly from the State General Cash Account to the Village Cash Account.

Then, he continued, the percentage of distribution stages is also reversed to be used faster, even in 20 innovative areas accelerated only 2 stages, namely 60 percent versus 40 percent.

Based on data on the use of these funds, the Village Fund has succeeded in reducing the poverty rate in villages at the beginning of the pandemic by 0.03 percent between March 2019-2020. (lal)