Village fund corruption mode: an anti-corruption perspective in Indonesia
| Date | 02 August 2024 |
| Pages | 444-455 |
| DOI | https://doi.org/10.1108/JFC-01-2024-0042 |
| Published date | 02 August 2024 |
| Author | Taofik Hidajat |
Village fund corruption mode:
an anti-corruption perspective
in Indonesia
Taofik Hidajat
Department of Management, Sekolah Tinggi Ilmu Ekonomi Bank BPD Jateng,
Semarang, Indonesia and Fakultas Ekonomi dan Bisnis, Universitas Padjadjaran,
Bandung, Indonesia
Abstract
Purpose –This paper aims to highlight the corruption mode of village funds in Indonesia and provide
recommendationsto reduce such crime.
Design/methodology/approach –This paper uses Diamond Fraud theoryto explain why the mode of
corruptioncontinues, using secondary data from journal articles, researchreports and websites.
Findings –Corruption mode is carried out through fund misuse, cover-up, fictional reports, fictitious
activitiesand projects and budget markup.
Practical implications –Prevention and detection of fraud can be more effective when considering
pressure,opportunities, rationalization and individualabilities.
Originality/value –The novelty of this paperis to provide a more comprehensive view of the factors that
can lead tofraud or corruption using the Fraud DiamondTheory.
Keywords Village fund, Village fund corruption, Indonesia corruption, Corruption mode,
Diamond fraud
Paper type Viewpoint
Remember, aid cannot achieve the end of poverty. Only homegrown development base on the
dynamism of individuals and firms in free markets can do that.
William Easterly –The White Man’s Burden (2006)
1. Introduction
The Indonesian Government spent a lot of money on building the village. Since 2015, the
village funds have continued to rise. However, the increase in the village’s funds was also
accompanied by an increasein cases of fund abuse (Anandya and Easter, 2023;Ash-shidiqqi
and Wibisono, 2018). During that period, therewere many cases with no small state losses.
What mode did the perpetrators use and why did the corruption cases of the village fund
continue?
Village self-planning,a concept of village development, refers to village planning that the
village itself establishesand decides upon, with community participation. The village funds
are estimated annually in the national expenditure income budget and are given to the
village as one of its sourcesof income.
The allocation of village fundscontinues to rise from IDR20.8tn (2015), IDR46.7tn (2016),
IDR59.8tn (2017), IDD59.9tn (2018), IDR69.8tn (2019), IDR71.1tn (2020), IDD71.9tn (2021),
JFC
32,2
444
Journalof Financial Crime
Vol.32 No. 2, 2025
pp. 444-455
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-01-2024-0042
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1359-0790.htm
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