The Implementation of Villages’ Financial System

or (SISKUDES): Case Study in Nagan Raya Regency, Aceh Province,

Indonesia

Sri Wahyu Handayani

Teuku Umar University Meulaboh, Indonesia

Keywords: Financial System, Village, Implementation.

Abstract: The implementation of village’s financial system or SISKUDES is aimed to facilitate village’s fund or Dana

Desa to be reported in transparent and accountable approach. According to Law Number 6/2014 on village,

there is the obligation that is delivered by village to be able to manage its domestic affair including financial

aspect. Therefore, it is a necessary to develop a system that can afford to build an accountability and a trust

in local level. This research aims to examine the current system that being implemented in Nagan Raya

Regency, Aceh. A qualitative method will be used to describe the implementation. There is a framework

developed by George C Edward as a policy implementation analysis. The research will be useful to policy

maker to evaluate the system. Moreover, the results of this study will indicate the implementation of the

village financial system application. There are several aspect of the implementation that will be examined

such as the communication, resources, disposition and bureaucratic structures. The use of the system will be

beneficial to monitor the fund and the link of the fund on the project in the village. Yet, the lack of skill of the

operators and hardware issues such as viruses may interrupt the system.

1 INTRODUCTION

Based on the Implementation of Law No. 6 of 2014

the National development program which was made

into the National RPJM 2015-2019 means that the

development of Indonesia from the periphery will

strengthen regions and villages in condemning the

Republic of Indonesia. In article 1 paragraph 1, the

village is a unit of the legal community that has

territorial boundaries that are entitled to regulate and

manage their own government or household affairs,

the right to adat, and the right of origin or initiative of

the community itself which is recognized and

respected in the NKRI government system . Law

Number 6 Year 2014 Article 1 paragraph 2 states that

villages have developed in various forms, so that legal

protection is needed to be stronger, independent,

advanced, and democratic in order to create a better

foundation in the implementation of governance and

development towards a prosperous, just society and

prosperous.

The implementation of village government

certainly cannot be separated from financial factors

for the continuation of government operations in the

village. Village financial management is very much

needed transparency and good accountability so that

it can surprise the transparency of the village

government so that the performance of the village

government is better. If the preparation of village

financial reports can be well made, the performance

of village governments can improve and be

independent in the management of government from

various natural resources and natural resources

owned by the village. The role of the village

government is very large along with the great

responsibility of the village apparatus, so the

government must be able to apply the principles of

transparency and accountability in managing village

finances.

Based on Law Number 6 of 2014 concerning

villages, starting in 2015 the central government

directly transfers 10% of the funds from the APBN

source to the funds directly into the village treasury

without going through intermediaries as before. In the

2015 Revised State Budget, village funds have been

allocated as much as 20.776 trillion for 74,093

villages spread throughout Indonesia, in the current

year the number of funds continues to increase even

reaching more than 1 billion for each village, in

Handayani, S.

The Implementation of Villages’ Financial System or (SISKUDES): Case Study in Nagan Raya Regency, Aceh Province, Indonesia.

DOI: 10.5220/0010011900800086

In Proceedings of the 3rd International Conference on Social and Political Development (ICOSOP 3 2019) - Social Engineering Governance for the People, Technology and Infrastructure in

Revolution Industry 4.0, pages 80-86

ISBN: 978-989-758-472-5

addition to village funds in accordance with Law

Number 6 Year 2014 concerning village article 72,

the village also manages finances sourced from

Regional Original Revenues and transfer revenues in

the form of Village Fund Allocation (ADD), Portions

from Regency/City Tax and Restrictions Results, and

financial assistance from Provincial/Regency/City

APBDs.

2 LITERATURE REVIEW

Policy implementation according to Mulyadi (2015:

12) is referring to actions to achieve the goals set in a

decision. Which decision can change into operational

patterns and try to achieve big or small changes as

previously determined. The implementation of public

policy is basically the government's effort to carry out

one of the main tasks to provide public services.

Implementation according to Anderson's opinion in

Hariyoso (2002) is essentially related to the

functional activities of carrying out the objectives of

the public so that they are truly on target. Whereas

Griendle in Hariyoso (2002) implementation of

public policy is a complex activity or choice because

it has an administrative and political horizon.

According to Zainal Abidin in Mulyadi (2015) states

that the implementation process is related to two main

factors, internal factors and external factors. The main

internal factor is the policy to be implemented. The

second factor is external environmental conditions

and other related parties.

Policy implementation is basically a change or

transformation that is multi-organizational, in which

changes implemented through a policy

implementation strategy will link various layers of

society. Therefore, the success of a policy strategy

depends on the ability to accommodate different

views and interests in the wider community. Based on

the views of experts on the implementation of policies

it can be concluded that in the implementation of a

policy not only highlights the behavior of

administrative institutions or agencies that must be

responsible for a program in its implementation of

target groups, it should also be noted in terms of

political power, social, economic which directly or

indirectly can be affected by the behavior of various

parties involved in it, both positive and negative

impacts that are not expected by the program. Policy

experts are also fixated on several policy models for

research and analysis purposes, models used to

analyze increasingly complex policy problems, in

addition to the need for theories that are able to

explain the relationship between variables that are the

basis of the focus of analysis.

2.1 The Merilee S. Grindlee Model

Implementation according to Merilee S. Grindle in

Mulyono (2015: 66) is influenced by policy (content

of policy) and the policy environment (content of

implementation). Basically the policy is transformed

first before it can be implemented in a policy that will

be carried out. Its success can be seen from the degree

of implementability of the policy.

The results of the policy cover several things.

1. Interests that are influenced by policies

2. Types of benefits generated

3. The degree of change desired

4. Position of policy makers

5. Who is the program implementer

6. Resources mobilized

While the scope of the policy (context of

implementation):

1. The power, interests and strategies of the actors

involved

2. Characteristics of ruling institutions

3. Compliance and responsiveness

2.2 Geoge C. Edward III Model

George C. Edward III in Mulyono (2015) argues that

there are 4 (four) variables that influence the

implementation of policies such as communications,

resources, dispositions or attitudes and bureaucratic

structure. Of the four factors must be simultaneously

carried out between one and the other has a close

relationship. The aim is to increase understanding of

policy implementation.

2.2.1 Communication

Measuring the success of policy implementation

requires that the implementor knows what needs to be

done, so that the goals and objectives of the policy

can be transmitted to certain groups, thereby reducing

the distortion of implementation. If the goals and

objectives of a policy are not clear or even not known

at all by the target group then there is a possibility of

resistance from the group.

Implementation will be effective if the measures

and objectives of the policy are understood by

individuals who are capable of being responsible for

achieving policy objectives. The objectives and

policies must have proper communication with the

implementers so that the consistency and uniformity

that is the basis of the communication size with the

The Implementation of Villages’ Financial System or (SISKUDES): Case Study in Nagan Raya Regency, Aceh Province, Indonesia

implementor knows the exact size and purpose of the

policy.

Communication is needed in the organization

because it is a very complete and complicated

process. Like the process of delivering information

each person will vary in understanding or arguing in

a policy that is made, so that the implementation runs

effectively, the partiesresponsible must dare to take a

decision to be understood by those who do.

Policy implementation must be easily accepted by all

groups and easily understood clearly and accurately

about the objectives of a policy. If policy makers see

that there is no clear policy specification then they

themselves do not understand what should be directed

at the implementers. If the policy implementers feel

confused with what they have to do the results that

they will not be optimal, then one of the implementers

of communication must seriously affect a policy.

2.2.2 Resources

Resources are very influential on a policy even

though communication has been carried out clearly

and consistently, if the implementator feels lack of

resources for implementing a policy then the

implementation will not run effectively. Human

resources can be as implementator competency

resources, financial resources, and human resources

this factor is very important for the implementation of

policies to be effective. Without resources, the policy

is only as paper and documents only.

It does not matter if the clarity and consistency of

the implementation of the program how it can be

accurate in a communication sent. If the personnel

responsible for implementing the program feel that

there is a lack of resources in an agency, such as staff,

expertise of the implementers, irrelevant and

insufficient information to implement the policy and

fulfillment of the resources involved in the

implementation program, there must be authority that

can guarantee that the program can be directed how

expected, fulfilled supporting facilities that can be

used to carry out both the funds and infrastructure

programs.

Human resources which are inadequate will have

an impact on the implementation of a program

perfectly then it will not be able to be properly

monitored, if the number of policy implementing staff

is limited then things that must be done improve the

skills / abilities of the implementers to carry out the

program, for that there must be an HR management

both in order to improve program performance. The

reality in the field is that the central level does not

know the needs that are needed by the implementers

in the field, such as lack of information or knowledge

on how to implement the policy has direct

consequences such as implementers who have no

responsibility so that it creates inefficiencies.

Implementation of the policy really requires

compliance from individuals and organizations to a

policy made by the existing government. From other

sources also need the authority to determine how the

program is implemented, such as the authority to

spend or manage finances either the provision of

money, the procurement of staff, and the procurement

of supervisors. The facilities provided must also

suffer so as not to obstruct the implementation of

policies or programs that must be met such as offices,

equipment, and funds that must be available, without

these facilities the program will not run effectively.

2.2.3 Disposition

Disposition is the character possessed by the

implementor, such as commitment, honesty,

democratic nature. If the implementer has a good

disposition, then he can run a policy properly and as

desired by policy makers, then the process of policy

implementation becomes effective. Factors that

influence the effectiveness of policy implementation

can be seen from the attitude of policy implementers

if they agree with parts of the contents of the policy it

will be happy to carry out, if their views differ from

policy makers, the implementation process will

become a lot of problems. There are three indicators

that must be owned by the implementor, namely the

form of attitude/response, direction or direction to the

program, whether or not to accept it.

A leader greatly influences the implementation of

programs to achieve goals effectively and efficiently.

The support of a leader in a policy becomes a program

priority, the placement of implementers with people

who support the program must also look at the

balance of the region, religion, ethnicity, gender and

other demographic characteristics. A leader must

support the total set of programs in government.

2.2.4 Bureaucratic Structure

The organizational structure in implementing a policy

has a very significant influence on the

implementation of policies from the important

structural aspects of each truck in the presence of

standard operating procedures (SOP). SOP which is a

guideline for an implementor in acting in every

organization, organizational bias that is too long will

tend to weaken in the supervision system. Complex

and complex bureaucratic procedures cause

organizational activities to become inflexible. The

executing agency of the policy cannot be separated

ICOSOP 3 2019 - International Conference on Social Political Development (ICOSOP) 3

from the organizational structure, characteristics,

norms, and patterns of relationships that occur within

the executive bodies who have both potential and real

relationships with them running in policy. Policy

variables relate to objectives that are explored with

available resources, such as implementing agencies

including formal and informal groups, while

communication between organizations and activities

related to the political system environment with the

target group, which is a concern of the attitude of the

implementers must be orientation in operating

programs in the field. This picture is about model of

implementation Edward III:

Figure 1: Model of Implementation (Edward III, 1980).

2.3 Model of Donald S. Van Meter and

Carl E. Van Horn

The policy implementation model developed by Van

Meter and Van Horn in their theory about an

argument about differences in the implementation

process will greatly affect the nature of the policy to

be carried out. Furthermore, the approach that

connects the issue of policy with implementation in a

conceptual model with work performance

(performance). The second also suggests a way to

connect between policies of separate work

performance by the number of independent variables

that are interrelated.

Van meter and van horn analyze the

implementation of top-level policy decisions.

1. Acting officials towards the implementation of

the policy.

2. Consistency of groups to decisions in a policy.

3. The extent to which the objectives to be achieved

against the policy.

4. The main factors that influence the outcome of

relevant and official policies in accordance with

the objectives.

5. Policies must be in accordance with what has been

formulated from time to time based on existing

experience. (Hill and Hupe 2002). And this

bellow is model of Van Meter and Van Hord

Implementation Policy:

Figure 2: The Policy Implementation Process

2.4 Implementation Model According

to Brian W. Hogwood and Lewis A.

Gunn

This model is often referred to as the top down

approach. Perfect implementation of state policy has

certain conditions (Wahab, 2016).

1. External conditions faced by implementing

agencies cannot cause serious obstacles.

2. Implementation of the program with sufficient time

and resources

3. The resources needed must really be there

4. Policy implementation has a reliable causality

relationship

5. Causality relationships are direct

6. The relationship of interdependence must be

small

7. Understanding must be deep towards the policy

objectives

8. Tasks must be detailed in the right place

9. Communication must have coordination

10. The party that has the power of authority has high

compliance

2.5 Model of Implementation of Daniel

Mazmanian and Paul A. Sabatier

The implementation of the policy identifies the

formal objectives of the implementation process.

Communication

Implementation

Resources

Bureaucratic

Structure

Disposition

The Implementation of Villages’ Financial System or (SISKUDES): Case Study in Nagan Raya Regency, Aceh Province, Indonesia

According to Wahab (2016) there are several

variables as follows:

1. Easily or whether a problem is addressed

2. Policy decisions must be structured properly in

the implementation process.

3. The influence of political variables in policy

decision objectives

Implementation of policies in different positions

names in principle every public policy must be

followed up with policy implementation. The form of

policy implementation at the main stage is crucial in

the policy process. As stated Edwards III that without

implementation it will not be effective and successful

2.6 Overview of the Village

According to Kansil (1983) the village is a legal entity

area where the people in power hold their own

government. According to article 1 chapter 1 of Law

number 6 of 2014 Village is an area that has the

authority to regulate and manage government affairs

in the village, both the interests of the local

community, original rights and traditional rights

which are recognized and respected in the Indonesian

government system. Based on the concept of the

village of an area occupied by a number of

communities has the authority to regulate their own

households based on the customs of the candidate

recognized by the indosesia government and district

government.

2.7 Overview of the Village Financial

System

Based on Law No. 6 of 2014 concerning villages

given the opportunity to take care of their own

household and governance, including managing their

own finances and development to improve the

welfare, quality of life of rural communities. The

village government must have the principle of

transparency, accountability to the community in

managing village finances.

2.8 Village Financial Management

Process

1. Planning:

a. The alignment of RPJM and RKP Desa

planning with the central government

program.

b. DPD participation rate

c. Village RKP Quality

2. Budgeting:

a. Village Budget Arrangement

b. Harmonization of Village Heads & BPD

c. Evaluation of Village APB

3. Implementation:

a. Goods/services procurement

b. Tax obligation

c. The authority of the village head

4. Administration:

a. Bookkeeping Administration

b. How to SPJ

c. Recording village wealth

d. The concept of capital expenditure is still

ambiguous

5. Reporting and responsibility:

a. Number of reports to be made

b. Reporting Standards

6. Supervision:

a. Effectiveness of supervision

b. Readiness of the supervisory apparatus,

especially APIP districts and cities.

3 METHOD

This study was conducted using a qualitative

approach with descriptive analysis that refers to the

theory of Van Matter and Van Horn theory. The

location of the study will be carried out in Nagan

Raya Regency, Aceh Province. Simeulue has 10 sub-

districts that have the potential to be developed and

have 222 villages, moreover the area is one of the

areas that is called Baru Pemekaran in Aceh Province.

The purpose of research is to determine the way

research in analyzing solving problems that exist.

Research type, research focus, type of research, type

of research, type of data, data collection techniques,

data management techniques, data analysis

techniques and data validation techniques. According

to Raco (2010) research defines scientific activities

that are planned, structured, systematic and have

specific goals theoretically and practically.

According to Danandjaja (2012) descriptive

research aims to provide an overview of an actual

problem without drawing conclusions. This research

analyzed descriptive and tested hypothesis. The

reason for this research is to find out the extent to

which the implementation of the village financial

system in Nagan Raya district (SISKUDES) is going

well or not in accordance with the actual and

conceptual nature.

In this study the focus of researchers is how the

village financial system in Nagan Raya district. Any

activities undertaken by Nagan Raya Regency to run

the existing financial implementation system in

Nagan Raya Regency such as constraints and

ICOSOP 3 2019 - International Conference on Social Political Development (ICOSOP) 3

determination processes as well as advantages and

disadvantages in the application. In this study the

analysis uses the George C Edward III

implementation model because the variables are

simultaneously and interact with each other to help

policy implementation

According to Fathoni (2011) research objectives

must be able to represent the entire population of

informants using the sampling method as an actor and

the target group of implementing village financial

applications (SISKUDES) so that the sampling

researchers are very appropriate to be used for

research on the implementation of the village

financial system in the District Nagan Raya. One

BPM employee informant, village treasurer.

a. The primary data source is the result of an interview

with one of the speakers from BPM Nagan Raya's

office.

b. Secondary data source

This study is based on Law No. 6 of 2014

concerning villages, presidential regulation no

192 of 2014 concerning village financial

oversight bodies and development, and

pemendagri numbers 113 and 114 concerning

village financial management.

4 CONCLUSION

Conclusions that can be summarized in the

implementation of public policies, standards and

objectives should always be clearly stated in each

program. Because if there are clear standards and

objectives, the policy will be easier to implement, but

on the contrary there will often be failures if the

standards and objectives are not clear. The

performance of policy implementation can be

measured by the level of success of the standard and

policy objectives that are realistic with the socio-

cultural existing at the level of implementing the

policy.

The size and objectives of the policy in the

successful implementation of the law in Nagan Raya

Regency include:

1. Law Number 23 of 2014 concerning Regional

Government

2. Law number 6 of 2014 concerning villages

3. Nagan Raya regent regulation number 3 in 2018

concerning procedures for allocating and

determining the amount of village fund allocation

(ADD) for each village in Nagan Raya district in

2018 budget year

4. Nagan Raya regent regulation number 3 of 2019

regarding technical guidelines for the use of ADG

village fund Nagan Raya district.

In the implementation of Law Number 6 of 2014

in Nagan Raya Regency, the size and objectives of

policies in every activity/program have always been

done. The Regent of Nagan Raya succeeded in Law

number 6 of 2014 concerning villages in Nagan Raya

district so far that some regulations have been issued

to further clarify the policy objectives, for example

relating to the procedures for allocating and the

amount of the budget given to each village in Other

Nagan Raya district areas. The informant also said the

same thing:

"As a village assistant, we have been coordinating

with village officials, and companion in the

District. For each program there must always be

information relating to the objectives of the

program, the benefits of the program and how the

process to realize the program.”

Based on the informant's explanation, basically all

of them already knew about Law Number 6 of 2014

concerning villages along with the regent's

regulations on villages in Nagan Raya district area.

But sometimes the obstacle in the field is that there

are still village officials who do not stick to the

standards and objectives that have been made in

implementing the program.

1. The implementation of the village application on

the first indicator, namely communication as a

benchmark for the success of the transmission of

information clarity has not been maximized due to

lack of maximum technical training.

2. Existing human resources in the Nagan Raya

Regency, such as staff and expertise that are

marked by the presence of a PTKD team in

operating the village financial system in the

Nagan Raya Regency.

3. Disposition in the form of village government

understanding of the village financial system

program is better and universal implementers in

understanding the government and facilitating

village government performance.

4. The bureaucratic structure must be in accordance

with the village SOP at the user level, the district

admin, the user reports to the new admin at the

central level. For the village bureaucracy and the

PTKD team.

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