A System Dynamics Analysis of Policy Interventions for Enhancing Village Government Self-Sufficiency in Indonesia

Abstract

One of the mandates of Law No. 6 of 2014, concerning villages, is to realise village self-sufficiency as a foundation for achieving rural community welfare. However, to date, village governments have not been able to achieve village self-sufficiency because policies from central and regional governments are often partial in nature and have not yet had an impact on improving village self-sufficiency. This study explores and analyses the structure and determines the leverage points of the village's self-sufficiency system using a system dynamics approach, which is an appropriate method for addressing problems characterised by dynamic complexity. Data collection was conducted through interviews, observations, and focus group discussions. The findings of this research identify leverage points in the village self-sufficiency system through interventions in the public service subsystem, village-generated revenue, and the economic dimension. The strategy for implementing policies involves collaboration among related stakeholders, as village governments have limited authority in terms of regulation, human resources, and financial aspects.