ROSYADI, Slamet and HARSANTO, Bambang Tri and SOBANDI, Khairu Roojiqien (2015) The Decentralization System of Sustainable Rural Development: A Role of Banyumas Regency’s Local Policymakers and Local Government in Addressing Equity and Fairness Issues. In: 2015 International Conference on Public Administration (ICPA 11 th ), Universitas Padjajaran Bandung.

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Abstract

Abstract Recently, the implementation of a local government’s aid fund policy in Indonesia has expanded into village level which was formerly halted at the regency government. Corruption in the regency level of government and slow improvement of rural community’s welfare become a strong evidence to extend this policy into the village level of government. The proximity of the village administration with its citizens is expected to increase public participation in rural development. There is more equitable distribution of development outcomes, to increase the quality of development programs and public services. Therefore, to support decentralization of rural development, the central government allocates Village Fund scheme derived from 10 percent of the national development budget and expenditure. Consequently, the village governments receive a bigger budget and more autonomous to support sustainable rural development program and their operational management. However, some obstacles such as inadequate village government administrative capacity, unavailability of assistant support, and poor quality of rural development planning have affect the equity and fairness of decentralized rural development programs. The role of these two institutions becomes crucial because the village fund management process is prone to conflicts of interest. In addition, low administrative capacity of village government will trigger to bad financial governance and social conflict with rural community. Using qualitative approach and case study method, Banyumas Regency in Central Java become an example of the process of decentralized rural development. The authors argue that the role of policy makers and local government is a strategic issue in improving fairness and equity in sustainable rural development. Key words

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