PERTANIKA JOURNAL OF SOCIAL SCIENCES AND HUMANITIES

This article summarises previous studies on corruption in the rural sector after Indonesia’s Village Law was passed. It uses a non-systematic multidisciplinary survey of forty peer-reviewed social science literature from 2014–2023 in the Scopus and Google Scholar databases to explore various complex factors that lead to village fund corruption and the set of conceptually proposed intervention measures to fight it. Public officials have frequently misused the granted autonomy, as proved by the rampant corruption in recent years. Beyond direct financial motives and low salaries, inadequate information provision and institutional weaknesses emerge as additional contributors to corruption. Various tactics, including manipulation of budgets, creation of fictitious reports, hindrance of public facility construction, misappropriation through unproductive enterprises, establishment of “ghost” villages, and solicitation of bribes, are employed by corruptors. Previous authors suggested that effective village governance can prevent and address such a worst maladministration by implementing robust practices like internal control, accountability, transparency, and compliance with regulations. Other proposed solutions to combat village fund corruption are empowering village officials, using advanced technologies, intensifying external audits, getting the community more involved, and enforcing strict legal sanctions. This overview urges evidence-based policies, collaboration, and systemic efforts for inclusive development and equitable outcomes in Indonesia’s rural areas. While macro-level studies and specific effective formulas still need to be improved, we call for future research to address this gap by conducting a rigorous exploration of village corruption and producing the best ways to stop it.

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