The Model and Strategy Improved of Empowering Economic Community Based on Village Fund Allocation: Empirical Study in Kuala Sub District, Nagan Raya District

The Efforts to empower the economy of villagers have been pursued through a government-run program through Law No. 6 of 2014 on villages that optimize the implementation of village government. This study aims to analyze strategies and models of village community empowerment based on Village Fund Allocation (ADD). Whether through the ADD strategy can lead to the empowerment of villagers and reduce the impact of poverty on the economic welfare of the community. The method used is descriptive quantitative with a sample of seven villages in Kuala sub district of Nagan Raya district. The primary data source was obtained by going directly to the research object, while the secondary source was obtained from the Central Statistical Agency (BPS), the District Government Empowerment Agency (BPM), and the sub district, by accessing documents from the official website. Then analysis of poverty effect used panel data analysis with Random Effect Model. Dependent variable used is poverty ratio, while independent variable of village funds (DD) and ADD. The results showed that the utilization of village fund allocation to community empowerment has not been maximal. Only one village from seven villages maximized the role of BUMDes to manage village potentials and assets. While the result of the analysis of village funding behaviour on poverty has positive and significant effect with p-value 0,000, with sig-tailed assumption of α = 0.05. This means that the increased use of village funds can reduce the gap of poverty that occurs in rural communities. The government is expected to improve the community economic empowerment program proposed by the village government in the management of ADD. Similarly, it is suggested to the village government to maximize economic improvement program trhough Village ownedenterprised (BUMDes) by utilizing village potentials, Purpose and principle of utilization of ADD.