VILLAGE AUTHORITY AND LOCAL INNOVATION TO ACCELERATE RURAL DEVELOPMENT IN INDONESIA: REVIEW OF INDONESIAN ACT NUMBER 6/2014 AND LAW OF GOVERNMENT NUMBER 38/2017

Abstract

Village is relatively small entity occupied by homogeneous people and tied by local norms and custom as well. In Indonesia, village has autonomus authority to manage and to govern daily activities 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 village development. 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 village development. Therefore, innovation is substantial to develop village sustainably, it comprises a newness of product or process or organization or marketing. Therein, village budget is important to develop fresh ideas to innovation in one or more of innovation types mentioned above. Whereas, innovation is an invention and its commersialisation to market, by which it is promoted by social-economic interest. In Indonesia, local innovation is promoted by Law of Government Number 38/2017 about Local Innovation where village is part of local government. This study is a descriptive-qualitative research method using secondary data. The analysis is content analysis technique with focusing on substance of local innovation and village budget of both laws. Due to this study is literature and act review only, analysis is developed through innovation policy framework. And the significant result is that both laws are appropriate to accelerate village development in Indonesia based on innovation, eventhough capacity of human resource and administrative management at village government level are necessarily considered.