Guidelines for Community Capacity Development via Village Funds

The Ministry of Villages Decree (Kepmendesa PDTT) Number 54 of 2024 serves as the official framework for utilizing Village Funds to develop community capabilities. This initiative aims to empower individuals and collectives to identify and solve problems independently while improving the knowledge, skills, and behavior required to manage local resources for increased welfare.

Legal and Regulatory Context

This decree acts as the operational guideline for Ministerial Regulation No. 7 of 2023 regarding Village Fund priorities. It aligns with Government Regulation No. 37 of 2023 on Regional Transfers, which mandates that Village Funds must be prioritized for village development and community empowerment.

According to Permendesa PDTT No. 21 of 2020, capacity development is a core component of empowerment and includes three pillars:

• Education, training, and learning.
• Counseling and outreach.
• Village mentoring and facilitation.

Objectives of Capacity Development

The utilization of Village Funds for these programs focuses on five primary goals:

1. Individual & Collective Growth: Developing the ability to perform functions and solve problems independently.
2. Resource Management: Improving the skills needed to manage human, natural, and environmental resources effectively.
3. Welfare Improvement: Transforming knowledge and attitudes into actionable outcomes for personal and group prosperity.
4. Agents of Change: Creating local leaders who drive community participation in development.
5. Efficiency & Sustainability: Ensuring that community roles in development are executed effectively and last for the long term.

Target Groups and Stakeholders

The guidelines categorize the targets of these capacity-building programs as follows:

• General Community: Residents of villages, disadvantaged areas, and transmigration zones.
• Community Elements: Traditional/religious leaders, educators, artists, and regional representatives.
• Economic & Interest Groups: Farmers, fishermen, craftsmen, and managers of economic institutions or business groups.
• Vulnerable & Specific Groups: Women’s organizations, child forums, youth groups, the poor, and people with disabilities (differently-abled).
• Empowerment Cadres: Community empowerment cadres and managers of various community organizations.

Implementation Mechanisms

As per 2025 standards, capacity development funded by Village Funds must follow these execution methods:

1. Self-Management (Swakelola)

Prioritizing Self-Management ensures that the village government, community organizations, or local groups execute the activities. Based on LKPP Regulation No. 12 of 2019, this involves a planning, preparation, execution, and reporting team to ensure accountability.

2. Inter-Village Cooperation

In cases where a single village lacks sufficient resources, activities can be conducted through the Inter-Village Cooperation Body (BKAD), following Permendagri No. 96 of 2017.

Strategic Importance for 2025

With 43.3% of Indonesia’s population residing in rural areas, the role of capacity development is central to achieving Village SDGs. This decree addresses the gap in village administrative competency, providing a transparent and accountable roadmap for Village Governments, private sectors, universities, and facilitators to collaborate effectively.

Visit the Village Regulations page for official access.