How village funds influence economic development in South Papua, Indonesia


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This quantitative study aims to determine the elements that influence the efficiency of village funds in terms of social and economic empowerment. Individualized solutions based on the demographics of the village, including financial support, business partners and markets, human resources, sociocultural ecology, and natural resources, are required for economic development. By collecting data from 179 village heads in South Papua province, Indonesia, this study determines that several elements substantially impact the economic empowerment of communities. However, these factors have not been fully optimized to attain economic independence of villages. With the assistance of regular support from the district government, most village heads are graduates who can effectively plan and implement programs. The distinctive qualities of a community are considered in sociocultural development programs. The development of natural resources and tourism are continuing processes that require market access and infrastructure improvement. Human resources are promising, and sociocultural initiatives align with community requirements. Therefore, addressing the problems associated with market access and resource development is vital. Village funds should promote the use of resources in a sustainable manner; however, there are still obstacles to engaging corporate land users, which calls for further investigation.

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    • Figure 1. Research model
    • Table 1. Respondent demographic
    • Table 2. Statistic summary
    • Table 3. Confirmatory factor analysis results
    • Table 4. F-test of Model 1 and Model 2
    • Table 5. Normality test
    • Table 6. Multicollinearity test of Model 1 and Model 2
    • Table 7. Heteroscedasticity test of Model 1 and Model 2
    • Table 8. Multiple correlation of Model 1 and Model 2
    • Table 9. Output of determination of Model 1 and Model 2
    • Conceptualization
      Inez Phoek, Amiya Bhaumik, Osama Isaac
    • Data curation
      Inez Phoek
    • Formal Analysis
      Inez Phoek, Osama Isaac
    • Funding acquisition
      Inez Phoek, Alexander Tjilen
    • Investigation
      Inez Phoek
    • Methodology
      Inez Phoek, Osama Isaac, Alexander Tjilen
    • Resources
      Inez Phoek, Alexander Tjilen
    • Software
      Inez Phoek, Osama Isaac
    • Visualization
      Inez Phoek
    • Writing – original draft
      Inez Phoek, Osama Isaac
    • Writing – review & editing
      Inez Phoek, Amiya Bhaumik, Alexander Tjilen
    • Project administration
      Amiya Bhaumik, Alexander Tjilen
    • Supervision
      Amiya Bhaumik, Osama Isaac, Alexander Tjilen
    • Validation
      Amiya Bhaumik, Osama Isaac, Alexander Tjilen