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"Sejak terbitnya Undang-undang tentang Desa pada tahun 2014, desa sebagai pemerintah daerah pada tingkat terendah di Indonesia, memiliki hak otonomi untuk mengatur anggarannya. Salah satu mandat dari undang-undang ini adalah lahirnya program Dana Desa. Seperti yang dinyatakan di dalam undang-undang tersebut, tujuan dari program Dana Desa adalah untuk meningkatkan kesejahteraan dan kesetaraan pembangunan desa. Penelitian ini menganalisa pengaruh Dana Desa terhadap pembangunan desa di Kabupaten Simalungun, Provinsi Sumatera Utara, yang memiliki potensi ekonomi yang cukup baik. Desain empiris pada penelitian ini adalah pendekatan difference-in-difference seta panel data untuk 386 desa dari tahun 2014 sampai 2018. Indeks Pembangunan Desa (IPD) digunakan untuk menggambarkan pembangunan desa. Hasil penelitian ini menunjukkan bahwa Dana desa secara parsial mempengaruhi status pembangunan desa dengan meningkatkan kualitas infrastruktur dan administrasi pemerintahan desa.

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Since the establishment of Indonesia’s Village Law in 2014, the village, as the lowest tier of regional government in Indonesia, has the autonomy to regulate its budget. A mandate of the Village Law is implementing the Village Fund program. As stated in the law, the objective of the Village Fund program is to improve the welfare and equity of village development. This research paper analyses the impact of the Village Fund on rural development in Simalungun District, in North Sumatera Province, which has significant economic potential. This empirical design relies on a difference-in-difference approach and panel data for 386 villages from 2014 to 2018. The Village Development index reflects rural development. The result indicates that Village Fund partially impacted the village development status by improving the quality of infrastructure and enhancing village government administration."

"ABSTRACTVillage is relatively small entity occupied by homogeneous people and tied by local norms andcustom as well. In Indonesia, village has autonomus authority to manage and to govern dailyactivities since Government of Indonesia issued Indonesian Act Number 6/2014 about Village.The law mentions that village can get, search, and spend its village budget to accelerate villagedevelopment. In practice, use of village budget is questionable due to complex issues in field.One of important things in allocating village budget is aimed to accelerate villagedevelopment. Therefore, innovation is substantial to develop village sustainably, it comprisesa newness of product or process or organization or marketing. Therein, village budget isimportant to develop fresh ideas to innovation in one or more of innovation types mentionedabove. Whereas, innovation is an invention and its commersialisation to market, by which itis promoted by social-economic interest. In Indonesia, local innovation is promoted by Law ofGovernment Number 38/2017 about Local Innovation where village is part of localgovernment. This study is a descriptive-qualitative research method using secondary data. Theanalysis is content analysis technique with focusing on substance of local innovation andvillage budget of both laws. Due to this study is literature and act review only, analysis isdeveloped through innovation policy framework. And the significant result is that both lawsare appropriate to accelerate village development in Indonesia based on innovation,eventhough capacity of human resource and administrative management at villagegovernment level are necessarily considered."