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Improving the Village Cash for Work (PKT) Policy

Tags   Dana Desa

The policy of cash for work (Padat Karya Tunai or PKT) in the village which began in 2018 to tackle poverty, unemployment and malnutrition in the villages raises several problems. This relates to some of the provisions in the PKT technical guidelines (i) causing budget inefficiencies, (ii) the risk of reducing the quality of work results, and (iii) not being equipped with clear reference criteria to establish PKT goals.

This policy note recommends that (i) the government does not set a minimum of 30% of the budget for development activities originating from the Village Fund (Dana Desa or DD) for labor costs; it is already sufficient for the government to push the village to carry out development by involving more marginal citizens; (ii) PKT activities are opened only for the position of workers, while the position of skilled laborers continues to use villagers who have the expertise/experience; and (iii) the government - through village facilitators - facilitates village government in identifying and setting PKT targets through village meetings.


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Lembaga Penelitian SMERU