Adoption of Blockchain Technology to Prevent Misuse of School Operational Assistance Funds (BOS) in Indonesia

Under the School Operational Assistance (BOS) program, the Indonesian government offers financial support to schools all throughout the country to aid in setting up classrooms. BOS funds are given to educational units, both public and private, according to the quantity of pupils they have. The purpose of school operational support is to free education costs for all students in public and private schools and to ease the burden of school operational costs for private schools. When BOS money are not used in compliance with the rules established by the government, issues occur. There are several types of BOS fund abuse, such as double counting, fictitious financing, project markups, embezzlement, and misappropriation of funds. Thus, the purpose of this research is to build a monitoring system for the use of BOS funds based on blockchain technology to increase transparency in the use of BOS funds. The concept of peer-to-peer validation on the blockchain network that will be applied to the BOS fund usage monitoring system is a concept that ensures that every stakeholder knows and validates all transactions. The research methodology examines the issues and phenomena surrounding the allocation of BOS funds using a qualitative approach and a review of the literature. A literature review is also used to study blockchain technology as the main concept for creating the proposed model. The research output is a model, activity diagram, and simulation using the Hyperledger framework.