The Impact of Village Fund Allocation on the Economy of Lhokseumawe City

Abstract

This study aims to investigate the impact of Village Fund allocation on the economy of Lhokseumawe City, Aceh Province, Indonesia. Using both quantitative and qualitative approaches, this research analyzes trends in Village Fund allocation over the past few years through secondary data, and conducts in-depth interviews with relevant stakeholders, such as local government officials, community leaders, and local entrepreneurs. The results of the study indicate that the Village Fund has made a significant contribution to local economic growth, including increasing people's purchasing power, creating new job opportunities, and stimulating investment in certain economic sectors. The Village Fund also promotes the development of basic infrastructure such as roads, irrigation systems, and healthcare facilities, which enhance accessibility and the quality of life for the community. However, this research also identifies challenges in the management and utilization of the Village Fund, such as issues of transparency, accountability, and the sustainability of fund usage. Policy recommendations are needed to improve the effectiveness of Village Fund allocation and ensure its benefits are equitably distributed among all residents of Lhokseumawe City.