Involve Public in Supervision

KOMPAS/SAIFUL RIJAL YUNUS

A couple poses in front of their house on Sunday (10/11/2019) in Lerehoma village of Anggaberi, Konawe, Southeast Sulawesi. Lerehoma village is inhabited by only 33 families and was established under the fictitious Konawe Regency Regulation No. 7/2011, but has been receiving billions of rupiah through the central government’s village funds scheme since 2017.

The existence of “fictitious villages” linked to the village funds shows the urgent need for institutional improvements and supervision at various levels.

The term “fictitious villages” first emerged in a working meeting between Finance Minister Sri Mulyani Indrawati and the House of Representatives Commission XI on Monday (4/11/2019). The minister said that she had received reports of fictitious villages from the ministry’s budgeting director general in a meeting at the Office of the Coordinating Economic Minister.

It is alleged that 56 fictitious villages are listed in Southeast Sulawesi. The police investigation into 23 villages in Konawe regency, which are unregistered at the Home Ministry, has found that two have no residents (Kompas, 10/11/2019).

These 56 villages, as revealed by this daily, are not listed under any regional regulation. However, all 56 are listed on the Home Ministry’s official website kemendagri.go.id. The villages also have area codes as per Regional Regulation No. 7/2011 on amendments to Konawe Regency Regulation No. 2/2002.

Another fact is that these villages, which are not registered in any regional regulations, have an administrative area, administrative structures and residents. Village head elections and inaugurations have been held, and village funds have been distributed.

KOMPAS/SAIFUL RIJAL YUNUS

Muslimin, 38, a father of four, shows his electronic ID card on Sunday (11/10/2019) at his residence in Lerehoma village of Anggaberi, Konawe, Southeast Sulawesi. He had the card made several months ago to identify him as a resident of the village, which established under Konawe Regency Regulation No. 7/2011 – a fictitious regulation that has nevertheless allowed the village to receive billions of rupiah through the central government’s village funds scheme since 2017.

Indonesia has a vast geographical area across thousands of islands. Some regions have no proper road or telecommunication infrastructure. Many villages are sometimes difficult to reach from local regency and district capitals.

Nevertheless, this is no reason for negligence; in this case is the absence of supervision that enables villages to be established without a regional regulation.

The existence of fictitious villages has gained public attention after the media reported the Finance Minister’s revelation during her working meeting with lawmakers.

The Corruption Eradication Commission (KPK) had earlier revealed the existence of fictitious villages, budget mark-ups and fictitious work programs. Solutions to this issue were also recommended, considering the huge village funds allocation in the State Budget. The 2019 State Budget allocates Rp 70 trillion (US$4.99 billion) for the village fund allocated.

The police are investigating the case of fictitious villages. If the existence of these fictitious villages is deliberate, it is an urgent warning of the abuse of power at all levels of government.

KOMPAS/SAIFUL RIJAL YUNUS

A truck passes along the road to Lerehoma village on Sunday (10/11/2019) in Anggaberi district, Konawe, Southeast Sulawesi. Lerehoma village was established under the fictitious Konawe RegencyRegulation No. 7/2011, and is part of the police investigation into “fictitious villages” that have been receiving billions through the central government’s village funds scheme.

Raghuram Rajan in The Third Pillar (2019) stressed that local communities must be involved in resources allocation and policymaking so they can develop solutions for their own problems.

Institutional reorganization must continue, including through the legal system and legitimate regulations. These institutions must be inclusive of community participation to ensure that the system is working properly, including in monitoring the political elite and the government.