Prioritising Village Fund Utilisation: Cash-For-Work To Prevent COVID-19

Key Messages 

  • The Covid-19 pandemic has impacted on many sectors, from health to social and the economy, even employment.
  • The social and economic burden on villages is increasing with people returning from cities–especially labourers/employees in construction/service industries.
  • The Village Fund is an instrument whose use should be optimised to prevent a negative socioeconomic impact in villages, particularly in terms of employment. The issuance of Government Regulation in Lieu of Law No. 1/2020 on State Financial Policy and Financial System Stability to Manage Coronavirus Disease 2010 Pandemic (Covid-19) and/or In the Event of Dealing With Threat Endangering National Economy and/or Financial System Stability provides a new instrument to minimise the impact of Covid-19 on employment issues in villages.
  • Activities should be relevant to Covid-19 pandemic management with target beneficiaries identified through a community-based program (musyawarah), that encourages local best practices, and in accordance with the needs in every village.
  • The Cash-for-Work (Padat Karya Tunai Desa: PKTD) Program has been running quite effectively since 2018. This program can be one use of the Village Fund program and can be implemented as soon as possible in accordance with existing policy. It is necessary to adjust prioritised activities using the mechanism pursuant to the prevailing regulations.