Accelerating Village Development through Fiscal Decentralization: An Analysis of Success Determinants in the Village Development Index (VDI) in Bandung Regency Tarlani Tarlani, Nia Kurniasari, Ernady Syaodih, Kalila, Salsabila
Universitas Islam Bandung
Abstract
^Fiscal decentralization is a fundamental instrument for promoting regional autonomy. This study aims to analyze the impact of fiscal decentralization on the acceleration of village development in Bandung Regency, focusing on improvements in the Village Development Index (VDI) and identifying the key determinants of success. Using a mixed-methods approach, this research analyzes secondary VDI data from all 270 villages for the year 2025, alongside primary data from in-depth interviews with village heads. The results show a significant transformation in village status. As of 2025, 186 villages, or nearly 69%, have achieved ^Independent^ status- 82 villages, or 30%, are ^Advanced^- and only 2 villages remain in the ^Developing^ category. This acceleration shows a strong correlation with the allocation of the national Village Fund (DD) and the regional Village Fund Allocation (ADD). Qualitatively, we found that the effectiveness of these fiscal transfers is heavily determined by local governance factors. These include: first, the leadership capacity and digital adaptability of village heads- second, the quality of local human resources- third, the strategic role of professional village facilitators- and fourth, the degree of community participation in planning and oversight. In conclusion, while fiscal decentralization is an effective catalyst for village development, its impact is strongly mediated by the quality of local institutions and actors. Therefore, strengthening participatory governance is a crucial policy implication for sustainable development.
Keywords: Fiscal Decentralization, Accelerating, Village Expenditure, Digital, Governance
