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Social Investment and the Implementation of the Village Fund

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Recently, the Government of Indonesia enacted regulations that enable special funding called the Village Fund or Dana Desa (DD) to finance their village development programs which is ultimately to increase villagers’ livelihood and welfare. To date, much attention has been devoted to how the Village fund is allocated to speed up infrastructure development in rural areas, such as roads and ponds. Nevertheless, rural communities faces multifaceted problems that could not be solved by infrastructure provision only. For instance, in some of regions in Indonesia, rural communities who relies their livelihood on agriculture are still struggling to overcome lengthy land conflict. There is still limited understanding on how the communities utilize the Village Fund to resolve land conflict as well increase rural communities’ resilience through livelihood diversification. We use qualitative approach to conduct the research. We derive the data mainly from desk study and in-depth interviews with relevant stakeholders from central government and non-governmental organizations. Content analysis is performed to analyze the data. We expect that this research results could become basis for Oxfam and its partners in formulating appropriate and innovative approach for their future empowerment programs that deal with land conflict issues. Therefore, based on the research findings, we will develop a conceptual model for increasing rural communities’ resilience by using the Village Fund as part of the resolution