Annual Budgeting Process at the Village Government Level under Current Budgeting Policy: Implementation, Issues, and Challenges at Three Villages of Batu City, Indonesia

Fadillah Amin; Nihayatus Sholichah

doi:10.70716/ecoma.v4i3.758

Authors

Fadillah Amin Departemen of Public Administration, Universitas Brawijaya, Indonesia
Nihayatus Sholichah Department of Public Administration, DR. Soetomo University, Indonesia

DOI:

https://doi.org/10.70716/ecoma.v4i3.758

Keywords:

Budgeting Process, APBDes, Village Government, Village Annual Budget

Abstract

After issuing Law 6 of 2014 on villages, the Indonesian government released numerous technical regulations to guide village governments in processing their annual budgets. In fact, these guidelines have created problems in the village-level budgeting process. The present study intends to describe and critically analyze the annual budgeting process at village governments under current policy and to describe and analyze emerging issues and challenges found in the village budgeting process. The research was conducted between April and November 2025 at three villages under the administration of Batu City. Data were gathered through interviews, observation, and documentation, involving 4 to 7 informants in each village, plus 4 relevant officials from the Batu City government. The collected data were analyzed in three stages: condensation, data display, and conclusion. The results show that the village budgeting process comprises four main stages, namely formulation of the budget plan (RAPBDes), validation of the budget plan, execution of the annual budget, and accountability. At the budget formulation phase, the main problem was how to integrate the mid-term village development plan with the development plan set up by higher-level government. Further, at the budget execution stage, village governments are currently obligated to submit a financial application, specifically for village governments, called SISKEUDES. Implementation of SISKEUDES offers benefits but also creates difficulties that contribute to accountability problems. This study shows how data constraints at the budget formulation stage and technical obstacles at the execution stage simultaneously affect the quality of village financial management and accountability.

Downloads

Download data is not yet available.

References

Firsby, M., & Bowman, M. (1996). What we have here is a failure to communicate: The case for citizen involvement in decision making. In The future of local government: Involving citizens in community decision making (pp. A1–A5). ICMA.

Ginting, E. Z., & Wahyudi, A. (2025). Pengelolaan dan pengawasan Dana Desa dalam pembangunan infrastruktur Desa Baru. Jurnal Sosial Humaniora dan Pendidikan, 5(1), 418–426. https://doi.org/10.55606/inovasi.v5i1.5035

Gleich, H. (2003). Budget institutions and fiscal performance in Central and Eastern European countries (ECB Working Paper No. 215). European Central Bank.

Hagen, J. von. (1992). Budgeting procedures and fiscal performance in the European Communities (Economic Papers No. 96).

Hõgye, M., & McFerren, C. (2002). Local government budgeting. Open Society Institute.

Krafchik, W. (2001). Can civil society add value to budget decision-making? A description of civil society budget work. International Budget Partnership.

Krafchik, W. (2001). Transparency and participation in the budget process: South Africa: A country report. Institute for Democracy in South Africa.

Ljungman, G. (2009). Top-down budgeting: An instrument to strengthen budget management (IMF Working Paper No. WP/09/243). International Monetary Fund.

Miles, M. B., Huberman, A. M., & Saldaña, J. (2014). Qualitative data analysis: A methods sourcebook (3rd ed.). SAGE Publications. https://doi.org/10.4135/9781506333098

Muhtada, D., Diniyanto, A., & Alfana, G. Q. (2018). Model pengelolaan Dana Desa: Identifikasi problem, tantangan, dan solusi strategis. RISTEK: Jurnal Riset, Inovasi dan Teknologi Kabupaten Batang, 2(2), 29–44. https://doi.org/10.55686/ristek.v2i2.34

Peraturan Menteri Dalam Negeri Republik Indonesia Nomor 113 Tahun 2014 tentang Pengelolaan Keuangan Desa. (2014).

Peraturan Menteri Dalam Negeri Republik Indonesia Nomor 114 Tahun 2014 tentang Pedoman Pembangunan Desa. (2014).

Peraturan Menteri Dalam Negeri Republik Indonesia Nomor 20 Tahun 2018 tentang Pengelolaan Keuangan Desa. (2018).

Peraturan Menteri Desa, Pembangunan Daerah Tertinggal, dan Transmigrasi Republik Indonesia Nomor 7 Tahun 2023 tentang Rincian Prioritas Penggunaan Dana Desa Tahun 2024. (2023). Kementerian Desa, Pembangunan Daerah Tertinggal, dan Transmigrasi Republik Indonesia.

Republik Indonesia. (2014). Undang-Undang Nomor 6 Tahun 2014 tentang Desa.

Reza, M. K., Dashela, T., Safitri, S. D. A., & Mustika, Y. (2026). Analisis pengelolaan anggaran Dana Desa dalam meningkatkan kesejahteraan Desa Parit Baru. EKOMA: Jurnal Ekonomi, Manajemen, Akuntansi, 5(4), 5236–5266. https://doi.org/10.56799/ekoma.v5i4.16677

Reza, F., Yunus, A. H., Solihin, F., Pagalu, M. F., Muttalib, S. R., & ZM, D. M. L. (2026). Implementasi program bantuan sosial dan Dana Desa di wilayah lokal (Studi pada Desa Bora, Kecamatan Sigi Biromaru, Kabupaten Sigi). Jurnal Administrator, 8(1), 96–105. https://doi.org/10.55100/administrator.v8i1.122

Santiso, C. (2004). Legislatures and budget oversight in Latin America: Strengthening public finance accountability in emerging economies. OECD Journal on Budgeting, 4(2), 47–76. https://doi.org/10.1787/budget-v4-art9-en

Saputra. (2025). Village fund management model in supporting the economy. Jurnal Economina, 4, 237–243. https://doi.org/10.55681/economina.v4i1.1353

Simbolon, G., & Lewowerang, Y. (2022). Implementation of village fund management and apparatus human resource challenges. Education for All Journal.

Thurmaier, K. (2007). Local budget execution. In A. Shah (Ed.), Local budgeting (pp. 269–304). The World Bank. https://doi.org/10.1596/978-0-8213-6945-6

Wardani, R., & Wicaksono, A. (2018). Transparency of village fund management and community participation. Jurnal Riset Akuntansi Terapan Indonesia.

Wehner, J. (2001). Reconciling accountability and fiscal prudence: A case study of the budgetary role and impact of the German Parliament. The Journal of Legislative Studies, 7(2), 58–80. https://doi.org/10.1080/714003876

World Bank. (2007). Spending for development: Making the most of Indonesia's new opportunities: Indonesia public expenditure review 2007. World Bank Office Jakarta.

Yabbar, R., & Hamzah, A. (2016). Tata kelola pemerintahan desa: Dari peraturan di desa hingga pengelolaan Badan Usaha Milik Desa (Edisi revisi). Pustaka Radja.

Yläoutinen, S. (2004). Fiscal frameworks in the Central and Eastern European countries (Discussion Paper No. 72). Ministry of Finance, Finland.

Zein, A. W., Riski, M., Zahra, A., & Nasution, P. (2025). Efisiensi penggunaan anggaran publik dalam meningkatkan kesejahteraan sosial. Jurnal Ilmiah Ekonomi Akuntansi dan Pajak, 2(2), 109–118. https://doi.org/10.61132/jieap.v2i2.1027

Zein, A. W., Sembiring, D. S., & Ningsih, E. J. (2025). Peran strategis Dana Desa dalam APBN: Meningkatkan kesejahteraan masyarakat desa. Anggaran: Jurnal Publikasi Ekonomi dan Akuntansi, 3(2), 204–213. https://doi.org/10.61132/anggaran.v3i2.1425