International Business Management

Year: 2017
Volume: 11
Issue: 5
Page No. 1058 - 1072

Empirical Study on Implementation of Village Fund for Issue of Urbanization from West Java Province to State Capital of Jakarta

Authors : Fernandes Simangunsong and Imelda Hutasoit

Abstract: Focus of this study was on "how" to answer urgent issues of Indonesian that call for balanced development to all regions, specifically concerning urban and rural development in order to overcome to alleviate or possibly to prevent the massive urbanization (rural to urban migration). West Java province is the most populated province in Indonesia and directly adjacent with the state capital of Jakarta thus it is sometimes considered as "capital buffer region". Development in West Java province and special region of state capital of Jakarta (DKI) are basically significant but in terms of the pace, DKI is at higher pace compared to West Java. This as result, triggers massive urbanization of the population from West Java Province which is agricultural based to the state capital of Jakarta where they would strive for living in the sectors of "industry and commerce". The rapid development in Jakarta has encouraged the shift of industrial and commercial center from Jakarta to adjacent regencies/cities of West Java. This makes the work pattern of West Java people which was agricultural based to slowly shifts towards industrial growth and changes its people from Paguyuban(gemeinschaft, homogeneous community) to Patembayan (gesellschaft, heterogeneous society). This is big phenomenon of most regions in Indonesia not only between Jakarta and West Java which people who used to live in rural migrate massively to Jakarta. It is due to Indonesian government has been "neglectful" to develop villages that arouse the perception that "if you want to succeed, go conquer Jakarta". For almost 70 years, Indonesian government has never been focused on development of villages and there were already many experts, either scholars or practitioners in village development, suggesting the need of change in Indonesian development scheme. Eventually, their years of efforts are paid off after the seventh president of Indonesia, Ir. Joko Widodo, enacted the new legislation, "one village one billion" where every villages shall be given with one billion rupiahs to encourage development of the village by the villagers itself by the village way itself and for the village’s interest itself with expectation that there will be less and no more urbanization (rural-urban migration) and to trigger money velocity that benefit villages more rather than only in cities. This study is study of documentation and observation on policy of government whether central, local and district to supervise the implementation of village fund for issue of urbanization in West Java Province.

How to cite this article:

Fernandes Simangunsong and Imelda Hutasoit, 2017. Empirical Study on Implementation of Village Fund for Issue of Urbanization from West Java Province to State Capital of Jakarta. International Business Management, 11: 1058-1072.

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