Modeling for rural poverty reduction by utilizing village funds in maluku province of Indonesia

The poverty rate in Maluku Province has remained consistently high, ranking fourth nationally, despite the significant allocation of Village Funds since 2015. This indicates persistent structural and implementation challenges in village-based poverty alleviation programs. This study aims to identify the key factors contributing to the persistence of rural poverty and to develop a locally grounded poverty reduction policy model utilizing Village Funds in Maluku Province, Indonesia. A qualitative research design was employed in three purposively selected villages within West Seram Regency. Data collection methods included in-depth interviews with village government officials and farmers, document analysis, and field observations. The findings revealed various interrelated issues, such as inaccurate poverty targeting data, inadequate participation of village governments in the poverty data collection process, and the absence of integrated, community-oriented intervention strategies. Additionally, socio-economic vulnerabilities, limited access to productive resources, and the weak institutional capacity of village governments further exacerbate the challenges. Based on these findings, the study proposed a five-year village-based poverty reduction model emphasizing inclusive and sustainable economic development, targeted social protection programs, enhanced essential services (education, health, and sanitation), and institutional strengthening at the village level. The model also highlights the importance of participatory planning, transparency, and accountability in managing Village Funds. The role of village governments is deemed crucial in initiating, coordinating, and monitoring economic empowerment programs tailored to the needs of vulnerable groups such as smallholder farmers, women, and informal workers. The study concludes that reducing rural poverty requires a collaborative and multisectoral approach involving synergy between government institutions, village authorities, and community members. Empowering poor households through capacity-building and sustainable livelihood initiatives is essential to improving their living standards and fostering long-term resilience. Future studies are recommended to test and refine the model's applicability and effectiveness across diverse rural contexts in Indonesia, particularly in regions with high poverty incidence and low development indicators.