Purpose: This study analyses the implementation of the village fund program in poverty reduction related to the program approach, the problems that arise, the implementation of social principles, and its impact on the poor.
Methodology: This study used a qualitative approach, in which the study was naturalistic, and the researchers conduct their research in as natural a condition as possible — the researchers in determining research informants using snowball techniques. The snowball technique allows more informants according to data requirements. The researchers interviewed the key informants and then asked them to mention other informants who made it possible to find out the topic being discussed. Some of the techniques used in data collection were observation, in-depth interviews, focused group discussions, and document studies. Researchers analyzed data by presenting data in the form of data sorting, categorizing data, and grouping data according to the needs of the analysis.
Findings: The implementation of the village fund program applies a community approach. This approach encourages the implementation of village funds to apply the principles of accountability, transparency, participation, democracy, and others. The community approach requires the participation of villagers at each stage of the program's implementation, since the planning, implementation, supervision, and preservation of development results. Nevertheless, the implementation of the village fund program was inseparable from several problems. Problems that occur found both at the local government level, advisory assistants, and the community itself. The implementation of the village fund program has more impact on the community, especially poor households.
Implications: The results of this study provide academic contributions to improve the implementation of poverty reduction in general and the implementation of the village fund program in particular.
Novelty: The implementation of the village fund program encourages the participation of village communities in the development of their villages. The involvement of the village community enables development to be carried out in an accountable, transparent, democratic, sustainable manner, and so forth. This approach enables the development to be carried out on target, and poor household communities feel its benefits.