Prioritising Cash Transfers From The Village Fund For COVID-19 Response

Key Messages

  • The Covid-19 pandemic not only affects health but also social conditions and every aspect of the economy, including the village economy. 
  • The Village Fund is an on-budget allocation that can be used directly to alleviate the impact of Covid-19 on households at the village level.
  • The issuance of Government Regulation in Lieu of Law (Perppu) No. 1/2020 on State Financial Policy and Financial System Stability to Counter the Coronavirus Pandemic 2019 (Covid-19) and/or In the Event of Dealing With Threats Endangering National Economy and/or Financial System Stability provides a new instrument to minimize the impact of Covid-19 on village economies.
  • Program objectives can be determined by using a community-based targeting method by prioritizing community discussions (musyawarah) and promoting village local best practices.
  • Cash transfers using the Village Fund (BLT-D)1 can be implemented immediately with more beneficiaries than the national program to minimise conflict in villages.