Uncovering Problem Situations in the Management of Village Funds Through System Models

Abstract

Village autonomy has generated optimism to accelerate rural development in Indonesia. However, their authority to manage funds raises complex problems. This study aims to find the tools for probe village financial management's dynamics and complexities. This paper proposed using Soft Systems Methodology (SSM) as a systems thinking designed to examine complex problem situations. SSM is a research perspective to analyze unstructured problem situations into problem situations structured in a conceptual model appropriate to the existing situation. The findings reveal that the SSM tool's implementation is limited community participation, low capacity and competence of village officials, limited community supervision, and village government accountability. Furthermore, the analysis proposed the models, a system model to increase community participation in village financial management, a system model for strengthening village officials' capacity and competence, and a system model to improve village government accountability and village community supervision in village financial management.