Law 6 2014 on Villages, English (2).PDF (UU No 6 in English)

UNOFFICIAL TRANSLATION

TELAH DI KOREKSI PADA TANGGAL 17 DESEMBER 2013, OLEH :

PEMERINTAH

PIMPINAN PANSUS

REPUBLIC OF INDONESIA LAW NUMBER 6 YEAR 2014

CONCERNING VILLAGES

WITH THE BLESSING OF GOD ALMIGHTY,

THE PRESIDENT OF THE REPUBLIC OF INDONESIA,

Considering : a. that Villages have customary and traditional rights in

regulating and managing the interests of local communities and play a role in realizing the vision of independence based on the 1945 Constitution of the Republic of Indonesia;

b. that in the journey of the state administration of the Republic of Indonesia, Villages have developed in various forms so that they need to be protected and empowered in order to become strong, advanced, self-reliant, and democratic so as to create a solid foundation in administering the government and development towards a just, wealthy, and prosperous society;

c. that Villages in the order and procedures of governance and development need to be regulated specifically with a law;

d. that based on considerations as stipulated in letter a, letter b, and letter c, a Law regarding Villages needs to be established;

Recalling : Article 5, Article 18, Article 18B letter (2), Article 20, and Article

22D clause (2) of the 1945 Constitution of the Republic of Indonesia;

With the Approval of

THE HOUSE OF REPRESENTATIVES OF THE REPUBLIC OF INDONESIA

and

THE PRESIDENT OF THE REPUBLIC OF INDONESIA

DECREES:

To enact : LAW ON VILLAGES.

Disclaimer

This translation has been

commissioned by the

World Bank’s Jakarta

Office. The World Bank

cannot guarantee the

accuracy and correctness

of the translation.


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CHAPTER I

GENERAL PROVISIONS

Article 1 In this Law terms used have the following meanings: 1. Village is village and customary [adat) village or as referred to by other names, to

be further referred to as Village, which is a legal community unit that has territorial boundaries with an authority to regulate and manage government affairs, local community interests based on community initiative, customary rights, and/or traditional rights that are recognized and respected in the administrative system of the Unitary State of the Republic of Indonesia.

2. Village Administration is the governance of administrative and local community

affairs in the administrative system of the Unitary State of the Republic of Indonesia.

3. Village Government is the Village Head or as referred to by other names supported by Village apparatuses as the governing element of the Village Administration.

4. Village Consultative Council or as referred to by other names is an institution that executes the administrative function whose members are representatives of the Village population based on regional representation and established democratically.

5. Village Assembly or as referred to by other names is the consultation between the Village Consultative Council, the Village Government, and community elements organized by the Village Consultative Council to agree on matters of strategic nature.

6. Village-Owned Enterprise, to be further called VOE, is an enterprise whose capital is wholly or mostly owned by the Village through direct investment originating from the Village wealth that is separated for the purpose of managing assets, services, and other enterprises for the greatest benefit to the welfare of the Village community.

7. Village Regulation is a statutory law established by the Village Head after being discussed and agreed together with the Village Consultative Council.

8. Village Development is an effort to increase the quality of life and livelihood for the greatest benefit to the welfare of the Village community.

9. Rural Area is a zone that has the primary activity of agriculture, including management of natural resources with the disposition of zone functions as location for rural residential areas, government services, social services, and economic activities.

10. Village Finances are all rights and obligations of the Village that can be valued

monetarily and everything in the form of money and goods that pertain to the discharge of Village rights and obligations.

11. Village Assets are all Village properties originating from the Village own-source wealth, purchased or obtained levying the Village Income and Expenditure Budget or other legitimate rights acquisition.

12. Village Community Empowerment is an effort to develop self-reliance and welfare of the community by promoting knowledge, attitudes, skills, behaviors, abilities, awareness, as well as utilizing resources through establishment of policies,


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programs, activities, and facilitation that conform to the essence of problems and needs priorities of the Village community.

13. Central Government to be further referred as the Government is the President of the Republic of Indonesia who holds the administrative powers of the state of the Republic of Indonesia as stipulated in the 1945 Constitution of the Republic of Indonesia.

14. Regional Government is the Regional Government and the Regional People’s Representative Council [DPRD] that administers government affairs pursuant to the doctrine of autonomy and the assistance duties with the principle of widest possible autonomy within the system and principle of the Unitary State of the Republic of Indonesia as stipulated in the 1945 Constitution of the Republic of Indonesia.

15. The Regional Government is the Governor, Bupati [District Head], or Mayor and regional apparatuses as executive elements of the Regional Administration.

16. Minister is the minister with the Village portfolio.

Article 2 Village Government Administration, Village Development execution, Village guidance, and Village community empowerment shall be based on Pancasila, the 1945 Constitution of the Republic of Indonesia, the Unitary State of the Republic of Indonesia, and Bhinneka Tunggal Ika.

Article 3

Village Management shall be based on the principles of: a. recognition; b. subsidiarity; c. plurality; d. cohesiveness e. mutual assistance f. familyness; g. deliberation; h. democracy; i. self-reliance; j. participation; k. equality; l. empowerment; and m. Sustainability.

Article 4

Regulation of Villages shall have the purpose: a. to provide recognition and respect of existing Villages with their plurality prior to

and after the formation of the Unitary State of the Republic of Indonesia; b. provide clarity of status and legal certainty of the Village in the state administrative

system of the Republic of Indonesia for the sake of realizing justice for all people of Indonesia;

c. preserve and promote customs, tradition, and culture of Village communities; d. promote initiative, movement, and participation of Village communities for the

development of Village potentials and Assets for common welfare; e. establish professional, efficient and effective, transparent, and accountable Village

Administration;


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f. promote public services for Village community members in order to accelerate the realization of public welfare;

g. enhance sociocultural resilience of Village communities in order to realize Village communities capable of preserving the social unity as part of national resilience;

h. advance the economy of Village communities and overcome the disparities of national development; and

i. strengthen Village communities as subjects of development.

CHAPTER II SITUATION AND TYPES OF VILLAGES

Part One Location

Article 5

Villages shall be situated in the territory of a District/Municipality.

Part Two Types of Villages

Article 6 (1) Village shall include Village and Adat [Customary] Village. (2) The reference of Village or Adat Village as stipulated in clause (1) shall be

adapted to references that prevail locally.

CHAPTER III

VILLAGE ORGANIZATION

Article 7 (1) Government, Provincial Regional Government, and District/Municipality

Regional Government may perform Village organization. (2) The organization as stipulated in clause (1) shall be based on evaluations of the

progress level of Village Administration pursuant to provisions of statutory laws.

(3) The organization as stipulated in clause (1) shall have the purpose to:

a. realize effectiveness of Village Governance;

b. accelerate the promotion of welfare of Village communities;

c. accelerate the promotion of quality of public services;

d. promote the quality of Village Governance; and

e. promote Village competitiveness. (4) The organization as stipulated in clause (1) shall include:

a. formation; b. elimination; c. merger; d. status change; and e. Village establishment.


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Article 8 (1) Village Formation as stipulated in Article 7 clause (4) letter a. is an act of creating

a new Village outside of existing Villages. (2) Village Formation as stipulated in clause (1) shall be established with a

District/Municipality Regional Bylaw by considering the Village community initiative, origins, customs and traditions, sociocultural conditions of the Village community, as well as capabilities and potentials of the Village.

(3) Village Formation as stipulated in clause (1) shall meet the following conditions: a. age limit of the original Village shall be at least 5 (five) years since the

formation; b. population size, namely:

1) Java at least 6,000 (six thousand) people or 1,200 (one thousand two hundred) heads of families;

2) Bali at least 5,000 (five thousand) people or 1,000 (one thousand) heads of families;

3) Sumatra at least 4,000 (four thousand) people or 800 (eight hundred) heads of families;

4) South Sulawesi and North Sulawesi at least 3,000 (three thousand) people or 600 (six hundred) heads of families;

5) West Nusa Tenggara at least 2,500 (two thousand five hundred) people or 500 (five hundred) heads of families;

6) Central Sulawesi, West Sulawesi, Southeast Sulawesi, Gorontalo, and South Kalimantan at least 2,000 (two thousand) people or 400 (four hundred) heads of families;

7) East Kalimantan, West Kalimantan, Central Kalimantan, and North Kalimantan at least 1,500 (one thousand five hundred) people or 300 (three hundred) heads of families;

8) East Nusa Tenggara, Maluku, and North Maluku at least 1,000 (one thousand) people or 200 (two hundred) heads of families; and

9) Papua and West Papua at least 500 (five hundred) people or 100 (one hundred) heads of families.

c. working area that has interregional transportation access; d. sociocultural conditions that can create harmony of community living according

to customs and traditions of the Village; e. has potentials including natural resources, human resource, and supporting

economic resources; f. Village regional boundaries stated in the form of a Village map that has been

established in Bupati/Mayoral regulation; g. facilities and infrastructure for Village Administration and public services;

and h. availability of operational funds, permanent income, and other allowances for

Village Government apparatuses pursuant to provisions of statutory law. (4) Within the Village, territory hamlets or as referred to by other names may be

established according to the origins, customs and traditions, and sociocultural values of the Village community.

(5) Village formation as stipulated in clause (1) shall be done through preparatory Village.

(6) Preparatory Village shall be part of the original Village.


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(7) The status of the preparatory Village as stipulated in clause (5) may be elevated to become Village within 1 (one) to 3 (three) years.

(8) The status elevation as stipulated in clause (7) shall be executed pursuant to evaluation outcomes.

Article 9 A Village can be eliminated due to natural disasters and/or strategic national interests.

Article 10 Two or more adjacent Villages may be merged into a new Village based on the agreement of the Villages in questions by taking into consideration the conditions stipulated in this Law.

Article 11

(1) A Village may change status into a Ward [kelurahan] based on the initiative of the Village Government and Village Consultative Council through Village Assembly by taking into consideration suggestions and opinions of the Village community.

(2) All property and sources of income of a Village that has transformed into a Ward as stipulated in clause (1) shall become the wealth/assets of District/Municipality Regional Government that are used to promote the community welfare in the Ward and the funding of the Ward shall be levied on the District/Municipality Income and Expenditure Budget.

Article 12 (1) District/Municipality Regional Government may change the status of a Ward into

a Village based on community initiative and upon fulfillment of conditions stipulated pursuant to the provisions of statutory laws.

(2) A Ward that has changed status into a Village its facilities and infrastructure shall become the property of the Village and managed by the Village in question for the interest of the Village community.

(3) Funding for the status change of the Ward as stipulated in clause (1) shall be levied on the District/Municipality Income and Expenditure Budget.

Article 13

The Government may initiate the formation of a Village in a zone of special and strategic nature for national interests.

Article 14

Formation, elimination, merger, and/or status change of a Village into a Ward as stipulated in Article 8, Article 9, Article 10, and Article 11 or Ward into a Village as

stipulated in Article 12 shall be established in by a Regional Bylaw.

Article 15 (1) Draft Regional Bylaw regarding formation, elimination, merger, and/or status

change of Village into Ward or Ward into Village as stipulated in Article 14 that has received the joint approval of the Bupati/Mayor and the Regional People’s Representative Council shall be submitted to the Governor.

(2) The Governor shall evaluate the Draft Regional Bylaw regarding formation, elimination, merger, and/or status change of Village into Ward or Ward into


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Village as stipulated in clause (1) based on urgency, national interest, regional interest, Village community interest, and/or statutory laws.

Article 16

(1) The Governor shall state approval of the Draft Regional Bylaw as stipulated in Article 15 at the latest 20 (twenty) days since receiving the Draft Regional Bylaw.

(2) In the event that the Governor gives approval over the Draft Regional Bylaw as stipulated in clause (1), District/Municipality Regional Government shall finalize and establish the Draft into Regional Bylaw at the latest 20 (twenty) days since receiving approval .

(3) In the event that the Governor rejects giving approval over the Draft Regional Bylaw as stipulated in clause (1), the Draft Regional Bylaw cannot be passed and cannot be proposed again within 5 (five) years since the Governor’s rejection.

(4) In the event that the Governor does not approve or reject the Draft Regional Bylaw as stipulated in Article 15 within the time as stipulated in clause (1), the Bupati/Mayor may approve the Draft Regional Bylaw and the regional secretary shall promulgate the law in the Regional Gazette.

(5) In the event that the Bupati/Mayor does not establish the Draft Regional Bylaw that has been approved by the Governor, the Draft Regional Bylaw shall within 20 (twenty) days since the date of the Governor’s approval be automatically declared applicable.

Article 17

(1) Regional Bylaw District/Municipality regarding formation, elimination, merger, and status change of Village into Ward or Ward into Village shall be enacted after getting a registration number from the Governor and Village code from the Minister.

(2) The Regional Bylaw District/Municipality as stipulated in clause (1) shall be enclosed with the Village boundary map.

CHAPTER IV VILLAGE AUTHORITIES

Article 18

Village Authorities include authorities in the field of Village Governance, execution of Village Development, Village guidance, and Village community empowerment based on Village community initiative, origin rights, and customs and traditions.

Article 19 Village authorities shall include:

a. authorities based on origin rights; b. local Village-scale authorities; c. authorities assigned by the Government, Provincial Regional Government, or

District/Municipality Regional Government; and d. other authorities assigned by the Government, Provincial Regional Government, or

District/Municipality Regional Government pursuant to provisions of statutory laws.


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Article 20 Discharge of authorities based on origin rights and local Village-scale authorities as stipulated in Article 19 letter a and letter b shall be regulated and managed by the Village.

Article 21

Discharge of assigned authorities and discharge of other authorities from the Government, Provincial Regional Government, or District/Municipality Regional Government as stipulated in Article 19 letter c and letter d shall be managed by the Village.

Article 22 (1) Assignments from the Government and/or Regional Government to the Village

shall include Village Governance, execution of Village Development, Village guidance, and Village community empowerment.

(2) The assignments as stipulated in clause (1) shall include the costs.

CHAPTER V

VILLAGE GOVERNANCE

Article 23 Village Administration shall be governed by the Village Government.

Article 24

Village Governance shall be based on principles of: a. legal certainty; b. Governance orderliness; c. public interest orderliness; d. transparency; e. proportionality; f. professionalism; g. accountability; h. effectiveness and efficiency; i. local wisdom; j. plurality; and k. participation.

Part One

Village Government

Article 25 Village Government as stipulated in Article 23 includes Village Head or as referred to by other names and who is assisted by Village Apparatuses or as referred to by other names.


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Part Two Village Head

Article 26

(1) A Village Head shall have the task to run the Village Administration, execute Village Development, provide Village guidance, and empower the Village community.

(2) In discharging the duties as stipulated in clause (1), the Village Head shall have the authority to: a. lead Village Governance; b. appoint and discharge Village apparatuses; c. hold power in the management of Village Finances and Assets; d. establish Village Regulation; e. establish Village Revenue and Expenditure Budget; f. provide guidance of Village community life; g. maintain peace and order of the Village community; h. maintain and promote Village economy and integrate it in order to achieve

productive scale economy for the greatest benefit of Village community welfare; i. develop Village sources of revenue; j. propose and receive endowment of some state wealth in order to promote the

welfare of the Village community; k. develop Village community’s social and cultural life; l. utilize appropriate technologies; m. coordinate Village Development in a participatory manner; n. represent the Village inside and outside the court or appoint an attorney to

represent the Village pursuant to provisions of statutory laws; and o. discharge other authorities pursuant to provisions of statutory laws.

(3) In executing the tasks as stipulated in clause (1), a Village Head shall have the right to: a. propose an organizational structure and working procedures of the Village

Government; b. propose and establish Village Regulations; c. receive monthly fixed income, allowances, and other legitimate earnings, and

receive health insurance; d. get legal protection for the policies implemented; and e. delegate the mandates of discharging duties and other obligations to Village

apparatuses. (4) In discharging the duties as stipulated in clause (1), a Village Head shall have the

obligation to: a. hold firmly and practice Pancasila, implement the 1945 Constitution of the

Republic of Indonesia, as well as defend and maintain the integrity of the Unitary State of the Republic of Indonesia, and Bhinneka Tunggal Ika;

b. promote the welfare of the Village community; c. maintain peace and order of the Village community; d. comply with and uphold statutory laws; e. apply principles of democracy and gender equity; f. apply the principle of an accountable, transparent, professional, effective and

efficient, clean Village Governance, free from corruption, collusion, and nepotism;


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g. establish cooperation and coordination with all stakeholders in the Village; h. organize good governance of the Village administration; i. manage Village Finances and Assets; j. execute government affairs that are the authority of the Village; k. resolve community disputes within the Village; l. develop Village community economy; m. cultivate and preserve Village community’s sociocultural values; n. empower the community and community institutions within the Village; o. develop natural resource potentials and preserve the environment; and p. provide information to the Village community.

Article 27 In discharging the duties, authorities, rights, and obligations as stipulated in Article 26, a Village Head must: a. deliver Village Governance reports at the end of every budget year to

Bupati/Mayor; b. deliver Village Governance report at the end of official term to the Bupati/Mayor; c. provide reports regarding governance in writing to the Village Consultative

Council at the end of every budget year; and d. provide and/or disseminate information regarding governance in writing to the

Village community at the end of every budget year.

Article 28 (1) A Village Head who does not discharge the obligations as stipulated in Article 26

clause (4) and Article 27 shall be subject to administrative sanctions in the form of verbal and/or written reprimands.

(2) In the event that the administrative sanction as stipulated in clause (1) is not exercised, a temporary suspension shall be applied and can be extended to termination.

Article 29

A Village Head shall be prohibited from: a. harming public interest; b. make decisions that benefit him/herself, family members, other parties and/or

certain groups; c. abuse power, duties, rights and/or obligations; d. commit discriminatory acts towards community members and/or certain

community groups; e. commit acts that harass a Village community group; f. commit collusion, corruption, and nepotism, accept moneys, goods, and/or

services from other parties that may influence decisions or actions that he/she will execute;

g. become administrator in a political party; h. become member and/or administrator of a banned organization; i. hold dual office as head and/or member of Village Consultative Council, member of

People’s Representative Council of the Republic of Indonesia, Regional Representative Council of the Republic of Indonesia, Provincial Regional People’s Representative Council or District/Municipality Regional People’s Representative Council, and other positions that are regulated in statutory laws;


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j. participate and/or be involved in general and/or regional election campaigns; k. violate oath/pledge of office; and l. abandon the office for 30 (thirty) consecutive days without clear and accountable

reason.

Article 30 (1) A Village Head who violates prohibitions as stipulated in Article 29 shall be

subject to administrative sanctions in the form of verbal and/or written reprimands.

(2) In the event that the administrative sanction as stipulated in clause (1) is not exercised, a temporary suspension shall be applied and can be extended to termination.

Part Three

Village Head Elections

Article 31 (1) Village Head Elections shall be held simultaneously throughout the

District/Municipality territory. (2) District/Municipality Regional Administration shall establish policy for

implementing simultaneous Village Head elections as stipulated in clause (1) with a District/Municipality Regional Bylaw.

(3) Further provisions regarding simultaneous Village Head election procedures as stipulated in clause (1) and clause (2) shall be regulated in a Government Regulation.

Article 32

(1) Village Consultative Council shall inform the Village Head regarding the upcoming completion of the Village Head term of office in writing 6 (six) months prior to the completion of the office term.

(2) Village Consultative Council shall establish the Village Head election committee. (3) The Village Head election committee as stipulated in clause (2) shall be

independent and impartial. (4) The Village Head election committee as stipulated in clause (3) shall include

elements of Village apparatus, community institutions, and Village community figures.

Article 33

A Village Head candidate must meet the following criteria: a. citizen of the Republic of Indonesia; b. be pious to The One and Only God;

c. hold firmly and practice Pancasila, implement the 1945 Constitution of the Republic of Indonesia, as well as defend and preserve the integrity of the Unitary State of the Republic of Indonesia and Bhinneka Tunggal Ika;

d. have education of at least completing junior high school [SMP] or similar degree; e. at least 25 (twenty five) years old at the time of registration; f. willing to be nominated as Village Head; g. registered as resident and has maintained residence in the local Village for at

least 1 (one) year prior to registration; h. not currently serving a criminal sentence of imprisonment;


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i. has never been criminally convicted based on a court decision with permanent legal force for committing a crime punishable with at least 5 (five) years of imprisonment or more, unless 5 (five) years have passed since serving the criminal sentence and declares honestly and openly to the public that the person in question had been criminally convicted and is not a repeat criminal offender;

j. not currently having his voting rights deprived by a court decision with permanent legal force;

k. physically healthy; l. never served as Village Head for 3 (three) office terms; and m. other criteria regulated in Regional Bylaw.

Article 34

(1) Village Head shall be elected directly by Village residents. (2) Village Head elections shall be direct, public, free, confidential, honest, and fair. (3) Village Head elections shall be conducted through stages of nomination, voting,

and establishment. (4) In executing Village Head elections as stipulated in clause (2), a Village Head

elections committee shall be established. (5) The election committee as stipulated in clause (4) shall have the task to hold

networking and screening of potential candidates based on established criteria, organize voting, establish the elected Village Head candidate, and report the implementation of Village Head elections.

(6) The cost of holding Village Head elections shall be levied on the District/Municipality Revenue and Expenditure Budget.

Article 35

Village residents as stipulated in Article 34 clause (1) who on the day of the Village Head election are already 17 (seventeen) years old or are/have previously married shall be established as electors.

Article 36

(1) Potential Village Head candidates who have met the criteria as stipulated in Article 33 shall be established as Village Head candidates by the Village Head elections committee.

(2) Village Head candidates who have been established as stipulated in clause (1) shall be announced to the Village community in a public place according to the sociocultural condition of the Village community.

(3) Village Head candidates may conduct campaigns according to the sociocultural conditions of the Village community and provisions of statutory laws.

Article 37

(1) The Village Head candidate declared as elected is the candidate with the most votes. (2) Village Head election committee shall establish the elected Village Head

candidate. (3) Village Head election committee shall convey the name of the elected Village Head

candidate to the Village Consultative Council at the latest 7 (seven) days from the establishment of the elected Village Head as stipulated in clause (2).

(4) Village Consultative Council shall at the latest 7 (seven) days after receiving the election committee report convey the name of the elected Village Head candidate to the Bupati/Mayor.


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(5) The Bupati/Mayor shall validate the elected Village Head candidate as stipulated in clause (3) to become the Village Head at the latest 30 (thirty) days since the date of receiving election results from the Village Head election committee in the form of Bupati/Mayor decree.

(6) In the event that there is a dispute in the results of Village Head elections, the Bupati/Mayor shall be obligated to resolve the dispute within the time period as stipulated in clause (5).

Article 38

(1) The elected Village Head candidate shall be inaugurated by the Bupati/Mayor or an appointed official at the latest 30 (thirty) days after the issuance of the Bupati/Mayor decree.

(2) Before taking office, the Village Head elect shall take an oath/pledge. (3) The oath/pledge as stipulated in clause (2) shall be as follows:

“In the name of Allah/God, I pledge/promise that I will abide by my obligations as the Village Head as best as possible, as honestly as possible, and as just as possible; that I will always obey in practicing and defending Pancasila as the foundation of the state; and that I will uphold democratic life and the 1945 Constitution of the Republic of Indonesia and implement all statutory laws with as much rectitude as possible that apply for the Village, region, and the Unitary State of the Republic of Indonesia”.

Article 39

(1) A Village Head shall hold office for 6 (six) years beginning from the date of inauguration.

(2) The Village Head as stipulated in clause (1) may hold office at most for 3 (three) successive or non-successive office terms.

Part Four Village Head Dismissal

Article 40

(1) A Village Head shall be dismissed due to: a. death; b. own request; or c. being dismissed.

(2) The dismissal of Village Head as stipulated in clause (1) letter c shall be due to: a. conclusion of the office term; b. no longer can discharge the duties sustainably or permanently absent for

consecutive 6 (six) months; c. no longer meets the criteria as Village Head candidate; or

d. violated the prohibitions as Village Head.

(3) The dismissal of Village Head as stipulated in clause (1) shall be established by the Bupati/Mayor.

(4) Further provisions regarding termination of the Village Head as stipulated in clause (1) shall be regulated in Government Regulation.


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Article 41 A Village Head shall be temporarily suspended by the Bupati/Mayor after being declared as a defendant charged with a criminal imprisonment of at least 5 (five) years according to court case register.

Article 42

A Village Head shall be temporarily suspended by the Bupati/Mayor after being established as a suspect in criminal case of corruption, terrorism, treason, and/or crimes against the security of the state.

Article 43

A Village Head who is temporarily suspended as stipulated in Article 41 and Article 42 may be dismissed by the Bupati/Mayor after being declared as a convict pursuant to a court decision with permanent legal force.

Article 44

(1) A Village Head who is temporarily suspended as stipulated in Article 41 and Article 42 after going through a court process who are later proven not guilty based on a court decision that has permanent legal force, at the latest 30 (thirty) days since the court decision is received by the Village Head, Bupati/Mayor shall rehabilitate and reactivate the Village Head in question as the Village Head until the end of his/her office term.

(2) In the event that the office term of the Village Head who is temporarily suspended as stipulated in clause (1) has ended, the Bupati/Mayor must rehabilitate the good name of the Village Head in question.

Article 45

In the event that Village Head is temporarily suspended as stipulated in Article 41 and Article 42, the Village secretary shall discharge the duties and obligations of the Village Head until there is a court decision with permanent legal force.

Article 46

(1) In the event that the remaining term of office of the dismissed Village Head as stipulated in Article 43 is no more than 1 (one) year, the Bupati/Mayor shall appoint a civil servant from the District/Municipality Regional Government as caretaker Village Head officer until the election of a new Village Head.

(2) The caretaker Village Head officer shall discharge the duties, authorities, obligations, and rights of a Village Head as stipulated in Article 26.

Article 47

(1) In the event that the remaining term of office of the dismissed Village Head as

stipulated in Article 43 is more than 1 (one) year, the Bupati/Mayor shall appoint a civil servant from the District/Municipality Regional Government as the caretaker Village Head officer.

(2) The caretaker Village Head officer as stipulated in clause (1) shall discharge the duties, authorities, obligations, and rights of the Village Head as stipulated in Article 26 until the establishment of a new Village Head.

(3) The Village Head as stipulated in clause (2) shall be elected through Village Assembly that meet the criteria as stipulated in Article 33.


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(4) The Village Assembly as stipulated in clause (3) shall be conducted at the latest 6 (six) months since the dismissal of the Village Head.

(5) A Village Head elected through Village Assembly as stipulated in clause (3) shall discharge the tasks of a Village Head until the conclusion of the remaining term of office of the dismissed Village Head.

(6) Further provisions regarding Village Assembly as stipulated in clause (3) shall be regulated in Government Regulation.

Part Five

Village Apparatuses

Article 48 Village Apparatuses shall comprise of: a. Village secretariat; b. territorial executive; and c. technical executive.

Article 49

(1) The Village Apparatuses as stipulated in Article 48 shall have the duty to assist the Village Head in the discharge of his/her duties and authorities.

(2) The Village Apparatuses as stipulated in clause (1) shall be appointed by the Village Head after consulting with Camat acting on behalf of the Bupati/Mayor.

(3) In discharging the duties and authorities, the Village Apparatuses as stipulated in clause (1) shall report to the Village Head.

Article 50

(1) The Village Apparatuses as stipulated in Article 48 shall be appointed from Village community members who meet the following criteria: a. have at least middle school or comparable education; b. are at least 20 (twenty) years old until 42 (forty two) years old; c. registered as resident of the Village and has maintained residence in the

Village at least 1 (one) year prior to the registration; and d. other criteria determined in District/Municipality Regional Bylaw.

(2) Further provisions regarding Village Apparatuses as stipulated in Article 48, Article 49, and Article 50 clause (1) shall be regulated in District/Municipality Regional Bylaw pursuant to Government Regulation.

Article 51

Village Apparatuses shall be prohibited from: a. harming public interest; b. make decisions that benefit him/herself, family members, other parties and/or

certain groups; c. abuse authorities, duties, rights and/or obligations; d. commit discriminatory acts towards community members and/or certain

community groups; e. commit acts that harass a Village community group;


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f. commit collusion, corruption, and nepotism, accept money, goods, and/or services from other parties that may influence decisions or actions that he/she will execute;

g. become political party administrator; h. become member and/or administrator of a banned organization; i. hold dual office as head and/or member of Village Consultative Council, member of

People’s Representative Council of the Republic of Indonesia, Regional Representative Council of the Republic of Indonesia, Provincial Regional People’s Representative Council or District/Municipality Regional People’s Representative Council, and other positions regulated in statutory laws;

j. participate and/or be involved in general and/or regional election campaigns; k. violate oath/pledge of office; and l. abandon office for 60 (sixty) consecutive days without clear and accountable

reason(s).

Article 52

(1) Village Apparatuses who violate prohibitions as stipulated in Article 51 shall be subject to administrative sanctions in the form of verbal and/or written reprimands.

(3) In the event that the administrative sanctions as stipulated in clause (1) is not exercised, a temporary suspension shall be applied and can be extended to termination.

Article 53

(1) A Village Apparatus shall be dismissed due to: a. death; b. own request; or c. being dismissed.

(2) A Village Apparatus who is dismissed as stipulated in clause (1) letter c due to:

a. age reaching 60 (sixty) years old; b. permanently absent; c. no longer meets the criteria as Village Apparatus; or d. has violated prohibitions as Village Apparatus.

(3) Dismissal of a Village Apparatus as stipulated in clause (1) shall be established by the Village Head after consulting with Camat acting on behalf of the Bupati/Mayor.

(4) Further provisions regarding dismissal of a Village Apparatus as stipulated in clause (3) shall be regulated in Government Regulation.

Part Six Village Assembly

Article 54

(1) Village Assembly are a consultative forum attended by Village Consultative Council, Village Government, and Village community elements to deliberate on strategic matters in Village Governance.


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(2) Strategic matters as stipulated in clause (1) shall include: a. Village regulation; b. Village planning; c. Village cooperation; d. Village incoming investment plans; e. formation of Village-Owned Enterprises; f. addition and release of Village Assets; and g. extraordinary events.

(3) Village Assembly as stipulated in clause (1) shall be conducted at least once in 1 (one) year.

(4) Village Assembly as stipulated in clause (1) shall be funded from the Village Revenue and Expenditure Budget.

Part Seven Village Consultative Council

Article 55

A Village Consultative Council shall have the following functions: a. discuss and agree Draft Village Regulation together with the Village Head; b. accommodate and channel Village community aspirations; and c. conduct oversight of the Village Head’s performance.

Article 56

(1) Members of the Village Consultative Council shall be representatives of Village residents based on territorial representation, the filling of which shall be done democratically.

(2) Membership period of the Village Consultative Council shall be 6 (six) years starting from the date of the pronouncement of the oath/pledge.

(3) Members of the Village Consultative Council as stipulated in clause (1) may be elected for a membership period of at most 3 (three) successive or non-successive terms.

Article 57 Criteria for candidacy as member of Village Consultative Council shall be: a. be pious to the One and Only God; b. hold firmly and practice Pancasila, implement the 1945 Constitution of the

Republic of Indonesia, and defend and preserve the integrity of the Unitary State of the Republic of Indonesia and Bhinneka Tunggal Ika;

c. at least 20 (twenty five) years old or have been married; d. education of at least completing junior high school or similar degree;

e. not a Village Government Apparatus; f. willing to be nominated as member of Village Consultative Council; and g. representative of Village residents elected democratically.

Article 58

(1) The number of Village Consultative Council members shall be established with an odd number, at least 5 (five) persons and at most 9 (nine) persons, by considering regions, women, population, and the capacity of Village Finances.


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(2) Inauguration of Village Consultative Council members as stipulated in clause (1) shall be established by Bupati/Mayor decree.

(3) Members of the Village Consultative Council before holding office shall take oath/pledge together before the community and guided by Bupati/Mayor or appointed official.

(4) The words of the oath/pledge of members of the Village Consultative Council shall be as follows: “In the name of Allah/God, I pledge/promise that I will abide by my obligation as member of the Village Consultative Council as best as possible, as honestly as possible, and as just as possible; that I will always obey in practicing and defending Pancasila as the foundation of the state; and that I will uphold democratic life and the 1945 Constitution of the Republic of Indonesia and implement all statutory laws with as much rectitude as possible that apply for the Village, region, and the Unitary State of the Republic of Indonesia”.

Article 59

(1) Leadership of the Village Consultative Council shall comprise of 1 (one) head, 1 (one) vice head, and 1 (one) secretary.

(2) The Leadership of the Village Consultative Council as stipulated in clause (1) shall be elected from and by members of the Village Consultative Council directly in the Village Consultative Council meeting held specifically.

(3) The meeting of the Village Consultative Council to elect the leadership for the first time shall be led by the eldest member and assisted by the youngest member.

Article 60

Village Consultative Council shall draft the Village Consultative Council rules of procedures.

Article 61 A Village Consultative Council shall have the right to: a. oversee and solicit information regarding Village Governance to the Village

government; b. state opinions regarding Village Governance, execution of Village Development,

Village guidance, and Village community empowerment; and c. receive operational funds for the discharge of duties and functions from the

Village Revenue and Expenditure Budget.

Article 62 Members of the Village Consultative Council shall have the right to: a. propose draft Village Regulation;

b. pose questions; c. convey suggestions and/or opinions; d. to elect and be elected; and e. receive allowances from the Village Revenue and Expenditure Budget.

Article 63

Members of the Village Consultative Council shall be obligated to:


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a. hold firmly and practice Pancasila, implement the 1945 Constitution of the Republic of Indonesia, as well as defend and preserve the integrity of the Unitary State of the Republic of Indonesia and Bhinneka Tunggal Ika;

b. exercise a democratic life with gender equity in Village Governance; c. absorb, accommodate, gather, and act on Village community aspirations; d. prioritize public interest above personal, group, and/or class interest; e. respect the sociocultural values and customs and traditions of the Village

community; and f. preserve norms and ethics in working relations with Village community

institutions.

Article 64 Members of the Village Consultative Council shall be prohibited from:

a. harming public interest, harass a Village community group, and discriminate against members or groups in the Village community;

b. commit collusion, corruption, and nepotism, accept moneys, goods, and/or services from other parties that may influence decisions or actions that he/she will execute

c. abuse power;

d. violate oath/pledge of office;

e. hold dual office as Village Head and Village Apparatus;

f. hold dual office as member of People’s Representative Council of the Republic of Indonesia, Regional Representative Council of the Republic of Indonesia, Provincial Regional People’s Representative Council or District/Municipality Regional People’s Representative Council, and other positions that are regulated in statutory laws

g. implement Village projects;

h. become political party administrator; and/or

i. become member and/or administrator of a banned organization.

Article 65 (1) Mechanism for Village Consultative Council Deliberations shall be as follows:

a. Village Consultative Council Deliberations shall be led by the head of the Village Consultative Council;

b. Village Consultative Council Deliberations shall be declared valid if attended by at least 2/3 (two thirds) of Village Consultative Council members;

c. decision-making shall be done by way of deliberations to achieve consensus;

d. if consensus cannot be achieved, decision-making shall be done by the ballot;

e. balloting as stipulated in letter d shall be declared valid if it is agreed by at least ½ (one half) plus 1 (one) of present Village Consultative Council members; and

f. results of the Village Consultative Council Deliberations shall be established by the decision of the Village Consultative Council and enclosed with the minutes of the deliberations prepared by the secretary of the Village Consultative Council.

(2) Further provisions regarding the Village Consultative Council shall be regulated in District/Municipality Regional Bylaw.


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Part Eight Village Government Income

Article 66

(1) Village Head and Village Apparatuses receive a fixed income every month.

(2) The fixed income of the Village Head and Village Apparatuses as stipulated in clause (1) shall originate from the Balance Funds [Dana Perimbangan] in the State Revenue and Expenditure Budget received by the District/Municipality and established in the District/Municipality Revenue and Expenditure Budget.

(3) Aside from the fixed income as stipulated in clause (1), a Village Head and Village Apparatuses receive allowances originating from the Village Revenue and Expenditure Budget.

(4) Aside from the fixed income as stipulated in clause (1), a Village Head and Village Apparatuses receive health insurance and may receive other legitimate wages.

(5) Further provisions regarding the amount of fixed income as stipulated in clause (1) and allowances as stipulated in clause (3) and other legitimate wages as stipulated in clause (4) shall be regulated in Government Regulation.

CHAPTER VI RIGHTS and OBLIGATIONS of the VILLAGE and VILLAGE COMMUNITY

Article 67

(1) A Village shall have the right to:

a. regulate and manage community interests based on the origin right, customs and traditions, and sociocultural values of the Village community;

b. establish and manage Village institutions; and

c. receive sources of income.

(2) A Village shall have the obligation to: a. protect and maintain the union, unity, and harmony of the Village

community in the context of national harmony and integrity of the Unitary State of the Republic of Indonesia;

b. promote the quality of life of the Village community; c. cultivate democratic life; d. foster Village community empowerment; and e. provide and promote services to Village community.

Article 68

(1) The Village community shall have the right to: a. solicit and receive information from the Village Government and oversee the

activities of Village Governance, Village Development implementation, Village guidance, and Village community empowerment;

b. receive equal and equitable services; c. convey aspirations, suggestions, and opinions verbally or in writing in a

responsible manner regarding the activities of Village governance, Village Development implementation, Village guidance, and Village community empowerment;

d. elect, be elected, and/or established as: 1. Village Head;


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2. Village Apparatus; 3. member of the Village Consultative Council; or 4. member of Village community institutions.

e. receive providence and protection from disturbances to peace and order in the Village.

(2) Village community shall have the obligation to: a. develop itself and preserve the Village environment; b. encourage the realization of activities of good Village Governance, Village

Development implementation, Village guidance, and Village community empowerment;

c. encourage the realization of a safe, comfortable, and peaceful situation in the Village;

d. nurture and develop values of deliberations, consensus, familyness, and mutual assistance in the Village; and

e. participate in various activities in the Village.

CHAPTER VII

VILLAGE REGULATIONS

Article 69

(1) Types of regulations in the Village include Village Regulation, joint Village Head regulation, and Village Head Regulation.

(2) The Regulations as stipulated in clause (1) shall not contravene public interests and/or provisions of higher statutory laws.

(3) Village Regulations shall be established by the Village Head after being discussed and agreed together with the Village Consultative Council.

(4) Draft Village Regulation regarding Village Revenue and Expenditure Budget, levies, spatial planning, and Village Government organization must receive evaluation from Bupati/Mayor before being established as Village Regulation.

(5) Evaluation of outcomes as stipulated in clause (4) shall be submitted by Bupati/Mayor at the latest 20 (twenty) working days since receiving the draft regulation in question by Bupati/Mayor.

(6) In the event that the Bupati/Mayor has given the evaluation results as stipulated in clause (5), the Village Head shall be obligated to improve the draft regulation.

(7) Village Head shall be given time at most 20 (twenty) days since the receipt of evaluation results to be corrected.

(8) In the event that the Bupati/Mayor does not provide evaluation results within the time limit as stipulated in clause (5), the Village Regulation shall automatically apply.

(9) Draft Village Regulations must be consulted with the Village community.

(10) The Village community shall have the right to provide input with respect to the Draft Village Regulation.

(11) Village Regulations and Village Head Regulations shall be promulgated in the Village News and Village Gazette by the Village secretary.

(12) In the implementation of the Village Regulation as stipulated in clause (1), Village Head shall establish the Village Head Regulation as the implementing regulation.


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Article 70

(1) Joint Village Head Regulation is a regulation established by Village Heads from 2 (two) or more Villages that establish inter-Village cooperation.

(2) Joint Village Head Regulation as stipulated in clause (1) shall be the integration of interests of each Village in the inter-Village cooperation.

CHAPTER VIII VILLAGE FINANCES and VILLAGE ASSETS

Part One

Village Finances

Article 71

(1) Village Finances are all rights and obligations of the Village that can be valued with money and everything in the form of money and goods that pertain to the discharge of rights and obligations of the Village.

(2) The rights and obligations as stipulated in clause (1) shall give rise to revenues, expenditure, financing, and management of Village Finances.

Article 72

(1) Village revenues as stipulated in Article 71 clause (2) shall originate from: a. Village’s own-source revenues including enterprise outcome, asset outcomes,

own and participating initiatives, mutual assistance and other Village own-source revenues;

b. State Revenue and Expenditure Budget allocation; c. part of regional taxation and regional levies of the District/Municipality; d. Village funds allocation that is part of Balance Funds [Dana Perimbangan]

received by the District/Municipality; e. financial assistance from Provincial Regional Revenue and Expenditure

Budget and District/Municipal Regional Revenue and Expenditure Budget; f. non-binding grants and donations from third parties; and g. other legitimate Village revenues.

(2) Budget allocation as stipulated in clause (1) letter b shall originate from Central Government Expenditures by making Village-based programs more effective in an even and equitable manner.

(3) Part of regional taxes and regional District/Municipality levies as stipulated in clause (1) letter c at least 10% (ten percent) of the regional taxes and levies.

(4) Village fund allocations as stipulated in clause (1) letter d at least 10% (ten percent) from the balance funds received by the District/Municipality in the Regional Revenue and Expenditure Budget [APBD] after subtracting Special Allocation Funds.

(5) In managing Village Finances, the Village Head may delegate some of his/her authorities to appointed Village Apparatuses.

(6) For Regencies/Municipalities that do not provide Village fund allocation as stipulated in clause (4), the Government may exercise a postponement and/or cut in the amount of balance funds allocation after subtracting Special Allocation Funds that should have been transferred to the Village.


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Article 73

(1) Village Revenue and Expenditure Budget comprises of Village revenue, expenditure, and financing.

(2) Draft Village Revenue and Expenditure Budget shall be proposed by the Village Head and consulted together with the Village Consultative Council.

(3) Pursuant to deliberation results as stipulated in clause (2), the Village Head shall establish the Village Revenue and Expenditure Budget annually with a Village Regulation.

Article 74

(1) Village Expenditure shall be prioritized to fulfill the development needs as agreed in Village Assembly and in line with priorities of the District/Municipality Regional Government, Provincial Regional Government, and the Government.

(2) Development needs as stipulated in clause (1) shall include, but are not limited to, primary needs, basic services, environment, and Village community empowerment activities.

Article 75

(1) The Village Head is the holder of Village Financial management authority.

(2) In discharging the authority as stipulated in clause (1), the Village Head delegates some of his authorities to the Village Apparatuses.

(3) Further provisions regarding Village finances shall be regulated in a Government Regulation.

Part Two

Village Assets

Article 76

(1) Village Assets may be in the form of Village land assets, customary land, Village market, animal market, boat moorings, Village buildings, fish auction, agriculture produce auction, Village-owned forest, Village-owned springs, public baths, and other Village-owned assets.

(2) Other Village-owned assets as stipulated in clause (1) include: a. Village wealth purchased or obtained on the levy of State Revenue and

Expenditure Budget, Regional Revenue and Expenditure Budget, as well as Village Revenue and Expenditure Budget;

b. Village wealth obtained from grants and donations or similar; c. Village wealth obtained as an implementation of agreements/contract and others

according to provisions of statutory laws; d. Results of Village cooperation; and e. Village wealth originating from other legitimate acquisitions.

(3) The ownership of Government-owned and Regional Government-owned wealth of Village local scale that is present in the Village may be granted to the Village.

(4) Village-owned wealth in the form of land shall be certified in the name of the Village Government.


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(5) Village-owned wealth that has been taken over by District/Municipality Regional Government shall be returned to the Village, unless already used for public facility.

(6) Village-owned buildings must be furnished with proof of ownership status and administered properly.

Article 77

(1) Management of Village-owned wealth shall be conducted based on principles of public interest, functional, legal certainty, transparency, efficiency, effectiveness, accountability, and certainty of economic value.

(2) Management of Village-owned wealth shall be done to promote welfare and living standards of the Village community and to increase Village revenue.

(3) Management of Village-owned wealth as stipulated in clause (2) shall be discussed by Village Head together with the Village Consultative Council

according to management procedures of Village-owned assets as regulated in Government Regulation.

CHAPTER IX VILLAGE DEVELOPMENT and RURAL AREA DEVELOPMENT

Part One

Village Development

Article 78

(1) Village Development shall have the purpose to promote the welfare of Village communities and human quality of life as well as to alleviate poverty through the fulfillment of basic needs, building of Village facilities and infrastructure, developing local economic potentials, as well as utilization of natural and environmental resources in a sustainable manner.

(2) Village Development shall include planning, implementation, and supervision phases.

(3) Village Development as stipulated in clause (2) shall prioritize cohesiveness, familyness, and mutual assistance in order to realize the mainstreaming of peace and social justice.

Paragraph 1

Planning

Article 79

(1) Village Government shall prepare Village Development planning according to its authority by referring to District/Municipality development planning.

(2) The Village Development planning as stipulated in clause (1) shall be prepared periodically to include: a. Village Medium-Term Development Plan for a 6 (six) year period; and b. Village Annual Development Plan or what is called the Village Government

Working Plan, an elaboration of the Village Medium-Term Development Plan for a period of 1 (one) year.


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(3) The Village Medium-Term Development Plan and Village Government Work Plan as stipulated in clause (2) shall be established with a Village Regulation.

(4) Village Regulation regarding Village Medium-Term Development Plan and Village Government Work Plan shall be the sole planning document in the Village.

(5) Village Medium-Term Development Plan and Village Government Work Plan shall serve as guidelines in preparing the Village Revenue and Expenditure Budget as regulated in a Government Regulation.

(6) The implementation of Government and/or Regional Government programs of local Village scale shall be coordinated and/or delegated to the Village.

(7) The Village Development planning as stipulated in clause (1) shall be one source of input in District/Municipality development planning.

Article 80

(1) Village Development planning as stipulated in Article 79 shall be organized by

involving the Village community.

(2) In preparing the Village Development planning as stipulated in clause (1), the Village Government shall be obligated to hold Village Development Planning Consultations.

(3) Village Development Planning Consultations shall establish priorities, programs, activities, and needs of the Village Development funded by the Village Revenue and Expenditure Budget, Village community own funds, and/or District/Municipality Regional Revenue and Expenditure Budget.

(4) Priorities, program, activities, and needs of Village Development as stipulated in clause (3) shall be formulated based on assessment of Village community needs that include: a. promote quality and access to basic services; b. development and maintenance of infrastructure and the environment

according to technical capacity and available local resources; c. development of productive-scale agricultural economy; d. development and utilization of appropriate technologies for economic

progress; and e. increasing the quality of order and peace of the Village Community based on

the needs of the Village community.

Paragraph 2 Implementation

Article 81

(1) Village Development shall be implemented according to Village Government Working Plan.

(2) The Village Development as stipulated in clause (1) shall be implemented by the Village Government by involving the entire Village community in the spirit of mutual assistance.

(3) The implementation of Village Development as stipulated in clause (1) shall be conducted by employing local wisdoms and natural resources of the Village.

(4) Local Village-scale development shall be implemented by the Village itself. (5) Implementation of sectoral programs that enter the Village shall be informed to

the Village Government in order to be integrated with Village Development.


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Paragraph 3 Monitoring and Supervision of Village Development

Article 82

(1) Village community shall have the right to obtain information regarding the plan and implementation of Village Development.

(2) Village community shall have the right to conduct monitoring of the implementation of Village Development.

(3) Village community shall report the results of monitoring and various complaints regarding the implementation of Village Development to the Village Government and Village Consultative Council.

(4) Village Government shall be obligated to inform the planning and implementation of Village Medium-Term Development Plan, Village Government Work Plan, and Village Revenue and Expenditure Budget to the Village community through

public information services and report it in Village Assembly at least 1 (one) time annually.

(5) The Village community shall participate in Village Assembly to respond to the Village Development implementation report.

Part Two Development of Rural Areas

Article 83

(1) Development of Rural Areas is a combination of inter-Village development within 1 (one) District/Municipality.

(2) Development of Rural Areas shall be conducted in the effort to accelerate and promote the quality of services, development, and empowerment of the Village community in Rural Areas through participatory development approach.

(3) Rural Area Development shall include:

a. use and utilization of Village regions in the context of establishing development zones according to District/Municipality spatial plan;

b. services conducted to promote the welfare of rural communities;

c. infrastructure development, promotion of rural economy, and development of appropriate technologies; and

d. Village community empowerment to promote access to services and economic activities.

(4) Rural Area development draft shall be discussed together by the Government, Provincial Regional Government, District/Municipality Regional Government, and Village Government.

(5) The Rural Area development plan as stipulated in clause (4) shall be established by Bupati/Mayor according to the Regional Medium-Term Development Plan.

Article 84

(1) Rural Area development by the Government, Provincial Regional Government, District/Municipality Regional Government, and/or third parties that relate to utilization of Village Assets and Village spatial plan shall involve the Village Government.


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(2) Planning, implementation, use, and utilization of Village Assets for development of Rural Areas shall refer to outcomes of Village Assembly.

(3) Further regulation regarding planning, implementation of Rural Area development as stipulated in clause (2) shall be regulated in District/Municipality Regional Bylaw.

Article 85

(1) Rural Area Development shall be conducted by the Government, Provincial Regional Government, and District/Municipality Regional Government through regional apparatus working unit, Village Government, and/or Village-owned Enterprise by involving the Village community.

(2) The development of Rural Areas conducted by the Government, Provincial Regional Government, District/Municipality Regional Government, and third parties must utilize natural resource and human resource potentials as well as involve Village Government and Village community.

(3) The implementation of Rural Area Development with local Village scale must be handed over to the Village and/or inter-Village cooperation.

Part Three

Village Development and Rural Area Development Information System

Article 86

(1) A Village shall have the right to obtain information access through the Village Information System developed by District/Municipality Regional Government.

(2) The Government and Regional Governments must develop Village and Rural Area Development Information System.

(3) The Village Information System as stipulated in clause (1) shall include hardware and software, network facilities, as well as human resources.

(4) The Village Information System as stipulated in clause (1) shall include Village data, Village Development data, Rural Area data, as well as other information related to Village Development and Rural Area development.

(5) Village Information System as stipulated in clause (1) shall be managed by the Village Government and can be accessed by Village community and all stakeholders.

(6) District/Municipality Regional Government shall provide District/Municipality development planning information for the Village.

CHAPTER X VILLAGE-OWNED ENTERPRISE

Article 87

(1) Village may establish Village-Owned Enterprise called the BUM Desa [Village-Owned Enterprise, VOE].

(2) VOE shall be managed with the spirit of familyness and mutual assistance. (3) VOE may operate businesses in the economic and/or public service sectors

pursuant to provisions of statutory laws.


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Article 88

(1) Establishment of Village-Owned Enterprise shall be approved through Village Consultations.

(2) Establishment of Village-Owned Enterprise as stipulated in clause (1) shall be established with a Village Regulation.

Article 89

Village-Owned Enterprise business outcomes shall be used for: a. business development; and b. Village Development, Village community empowerment, and assistance for poor

communities through grants, social assistance, and revolving funds activities established in Village Revenue and Expenditure Budget.

Article 90

Government, Provincial Regional Government, District/Municipality Regional Government, and Village Government shall encourage the development of Village-Owned Enterprises by:

a. providing grants and/or access to capital;

b. conduct technical facilitation and access to markets; and

c. prioritize Village-Owned Enterprises in managing natural resources in the Village.

CHAPTER XI VILLAGE COOPERATION

Article 91

A Village may establish cooperation with other Villages and/or cooperation with third parties.

Part One

Inter-Village Cooperation

Article 92

(1) Inter-Village cooperation shall include: a. development of joint business owned by Villages to achieve competitive

economic value; b. community activities, services, development, and Inter-Village community

empowerment; and/or c. security and order sector.

(2) Inter-Village cooperation shall be elaborated in a Joint Village Head Regulation

through an Inter-Village consultation agreement.

(3) Inter-Village cooperation shall be conducted by an Inter-Village cooperation body established through a Joint Village Head Regulation.

(4) The Inter-Village Consultations as stipulated in clause (2) shall discuss matters pertaining to:

a. formation of an Inter-Village institution;

b. implementation of Government and Regional Government programs that may be implemented through Inter-Village cooperation scheme;


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c. planning, implementation, and monitoring of Inter-Village development programs;

d. budget allocation for Village, Inter-Village, and Rural Area Development;

e. input for Regional Government program where the Village is situated; and

f. other activities that may be organized through Inter-Village cooperation.

(5) In conducting Inter-Village development, the inter-Village cooperation body may establish groups/institutions according to need.

(6) In servicing Inter-Village business a Village-Owned Enterprise may be established owned by 2 (two) Villages or more.

Part Two

Cooperation with Third Parties

Article 93

(1) Village cooperation with third parties shall be conducted to accelerate and improve Village Governance, implementation of Village Development, Village guidance, and Village community empowerment.

(2) Cooperation with third parties as stipulated in clause (1) shall be consulted in Village Assembly.

CHAPTER XII VILLAGE COMMUNITY INSTITUTIONS and VILLAGE ADAT INSTITUTIONS

Part One

Village Community Institutions

Article 94

(1) A Village shall utilize the existing Village community institutions in supporting the implementation of the governance function of Village Administration, implementation of Village Development, Village guidance, and Village community empowerment.

(2) The Village community institutions as stipulated in clause (1) shall be forums for Village community participation as partners of the Village Government.

(3) Village community institutions shall have the task to conduct Village community empowerment, take part in planning and executing development, and promote Village community services.

(4) Implementation of programs and activities originating from the Government, Provincial Regional Government, District/Municipality Regional Government, and non-Government institutions shall empower and utilize existing community institutions in the Village.

Part Two

Village Adat Institutions

Article 95

(1) Village Government and Village community may establish Village adat institutions.


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(2) The Village adat institutions as stipulated in clause (1) shall be institutions that exercise the adat istiadat [customs and traditions] functions and become part of the Village’s original order that grows and develops upon the initiative of the Village community.

(3) The Village adat institutions as stipulated in clause (1) shall have the task to assist the Village Government and act as partners in empowering, conserving, and developing customs and traditions as a manifestation of the recognition of the Village community’s customs and traditions.

CHAPTER XIII SPECIAL PROVISIONS FOR ADAT VILLAGES

Part One

Adat Village Organization

Article 96 The Government, Provincial Regional Government, and District/Municipality Regional Government shall conduct the organization of the adat law community unit and established as Adat Village.

Article 97

(1) Establishment of Adat Village as stipulated in Article 96 shall meet the following criteria: a. adat law community unit along with its traditional rights is clearly still alive,

either territorially, genealogically, or functionally; b. adat law community unit along with its traditional rights is seen as

consistent with the development of society; and c. adat law community unit along with its traditional rights is consistent with

the principle of the Unitary State of the Republic of Indonesia. (2) Adat law community unit along with its traditional rights that is still alive as

stipulated in clause (1) letter a must have territory and at least meet one or a combination of the following elements of having: a. a community whose members have commonalities within the group; b. adat government institutions; c. wealth and/or adat items; and/or d. instruments of adat legal norms.

(3) Adat law community along with its traditional rights as stipulated in clause (1) letter b shall be deemed consistent with the developments of society when: a. its existence has been recognized pursuant to prevailing laws as a reflection

of development of values considered ideal in the contemporary society,

including laws of general as well as sectoral nature; and b. the substance of the traditional rights is recognized and respected by the

members of the pertinent community unit and wider society and does not contradict with human rights.

(4) An adat law community unit along with its traditional rights as stipulated in clause (1) letter c shall be considered consistent with the principle of the Unitary State of the Republic of Indonesia if the said adat law community unit does not disrupt the existence of the Unitary State of the Republic of Indonesia as a political unit and legal unit that:


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a. does not threaten the sovereignty and integrity of the Unitary State of the Republic of Indonesia; and

b. the substance of the adat legal norm is consistent and does not contravene the provisions of statutory laws.

Article 98

(1) Adat Village shall be established with District/Municipality Regional Bylaw. (2) Formation of Adat Village after the establishment of the Adat Village as

stipulated in clause (1) shall be done by taking into consideration factors of Village Governance, Village Development implementation, Village guidance, as well as Village community empowerment and supporting facilities and infrastructure.

Article 99

(1) Merger of Adat Villages may be conducted upon the initiative and agreement between Adat Villages.

(2) District/Municipality Regional Government shall facilitate the execution of the merger of Adat Villages as stipulated in clause (1).

Article 100 (1) The status of a Village may be changed into Adat Village, Ward may be changed

into Adat Village, Adat Village may be changed into Village, and Adat Village may be changed into Ward based on the initiative of the pertinent community through Village Consultations and approved by the District/Municipality Regional Government.

(2) In the event that a Village changes to become Adat Village, the wealth of the Village shall change status to become the wealth of the Adat Village, in the event that a Ward changes to become an Adat Village, the Ward’s wealth shall change status to become the wealth of the Adat Village, in the event that an Adat Village changes to become a Village, the wealth of the Adat Village shall change status to become the wealth of the Village, and in the event that an Adat Village changes to become a Ward, the wealth of the Adat Village shall change status to become the wealth of District/Municipality Regional Government.

Article 101

(1) The Government, Provincial Regional Government, and District/Municipality Regional Government may conduct organization of Adat Villages.

(2) Organization of Adat Villages as stipulated in clause (1) shall be established in Regional Bylaws.

(3) The Regional Bylaw as stipulated in clause (2) shall be equipped with regional boundary map.

Article 102 Regional Bylaw as stipulated in Article 101 clause (2) shall relate to provisions as stipulated in Article 7, Article 8, Article 14, Article 15, Article 16, and Article 17.


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Part Two Adat Village Authorities

Article 103

Authorities of the Adat Village shall be based on origin rights as stipulated in Article 19 letter a including: a. regulation and governance based on original order; b. regulation and stewardship of customary or adat territory; c. preservation of sociocultural values of Adat Village; d. resolution of adat disputes based on adat law that prevails in the Adat Village

within a region that is in harmony with the principle of human rights by prioritizing resolution by deliberations;

e. holding of peace court hearing of an Adat Village shall be pursuant to statutory laws;

f. preservation of peace and order of the Adat Village community based on adat law that prevails in the Adat Village; and

g. development of adat law living according to sociocultural conditions of the Adat community Village.

Article 104

Discharge of authorities based on origin rights and local-scale authorities of the Adat Village as stipulated in Article 19 letter a and letter b as well as Article 103 shall be regulated and managed by the Adat Village by taking into consideration the principle of plurality.

Article 105 The discharge of assigned authorities and the discharge of other duties from the Government, Provincial Regional Government, or District/Municipality Regional Government as stipulated in Article 19 letter c and letter d shall be managed by Adat Village.

Article 106 (1) The assignment from the Government and/or Regional Government to the Adat

Village shall include Adat Village Governance, implementation of Adat Village Development, supervision of Adat Village, and empowerment of Adat Village communities.

(2) The assignment as stipulated in clause (1) shall include the costs.

Part Three Adat Village Administration

Article 107 Regulation and governance of Adat Village Administration shall be implemented according to origin rights and adat law that prevails in the Adat Village that are still living and in accordance with developments in society and not in contravention to the principle of governance of Adat Village Administration within the principle of the Unitary State of the Republic of Indonesia.


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Article 108 Adat Village Administration shall discharge the consultative function and Adat Village Assembly in line with the original order of the Adat Village or shall be newly formed according to the initiative of the Adat Village community.

Article 109 The institutional order, filling of official positions, and office term of Adat Village Head based on adat law shall be established in the Provincial Regional Bylaw.

Part Four

Adat Village Regulation

Article 110 Adat Village Regulation shall be adjusted to the adat law and customary and

traditional norms that prevail in the Adat Village as long as they do not contravene the provisions of statutory laws.

Article 111 (1) The Special provisions regarding Adat Villages as stipulated in Article 96 until

Article 110 shall only apply to Adat Villages. (2) The Provisions regarding Villages shall also apply to Adat Villages so long as they

are not regulated in specific regulations regarding Adat Villages.

CHAPTER XIV

GUIDANCE and SUPERVISION

Article 112

(1) Government, Provincial Regional Government, and District/Municipality Regional Government shall provide guidance and supervise Village Governance.

(2) Government, Provincial Regional Government, and District/Municipality Regional Government may delegate the guidance and supervision to regional apparatuses.

(3) Government, Provincial Regional Government, and District/Municipality Regional Government shall empower the Village community by: a. applying the results of scientific and technological developments, appropriate

technology, and new inventions for the advancement of the economy and agriculture of the Village community;

b. promote the quality of Administration and Village community through education, training, and counseling; and

c. recognize and function the original and/or existing institutions in the Village community.

(4) Village community empowerment as stipulated in clause (3) shall be conducted with facilitation in planning, implementation, and supervision of Village and Rural Area Development.

Article 113

Guidance and supervision conducted by the Government as stipulated in Article 112 clause (1) shall include:

a. providing guidance and standards of implementation of Village Governance;


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b. providing guidelines regarding funding support from the Government, Provincial Regional Government, and District/Municipality Regional Government to the Village;

c. giving awards and guidance to Village community institutions;

d. providing guidance for preparation of participatory development planning;

e. providing guidelines regarding standards for Village Apparatus officials;

f. providing guidance, supervision, and consultation regarding governance of Village Administration, Village Consultative Council, and community institutions;

g. giving awards for the achievements conducted in the governance of Village Administration, Village Consultative Council, and Village community institutions;

h. establishing direct financial assistance for the Village;

i. conducting specific education and training for the apparatuses of Village Administration and Village Consultative Council;

j. conducting research regarding governance of Village Administration in certain Villages;

k. encouraging acceleration of rural development;

l. facilitating and conducting studies in the context of determining adat law community unit as Village; and

m. preparing and facilitating technical guidelines for VOE and Village cooperation institutions.

Article 114 The Guidance and supervision conducted by the Provincial Regional Government as stipulated in Article 112 clause (1) shall include: a. conducting guidance with respect to District/Municipality in preparing

District/Municipality Regional Bylaws that regulate the Village; b. conducting guidance of District/Municipality in providing Village funds

allocation; c. conducting guidance for capacity building of Village Head and Village

Apparatuses, Village Consultative Council, and community institutions; d. conducting guidance for Village Administration management; e. conducting guidance for effort to accelerate Village Development through

financial assistance, facilitation assistance, and technical assistance; f. providing technical guidance in specific fields that cannot be done by

District/Municipality Regional Government; g. making an inventory of Provincial authorities conducted by Villages; h. conducting guidance and supervision over the establishment of Draft

District/Municipality Revenue and Expenditure Budget in financing the Village; i. conducting guidance with respect to District/Municipality in organizing Village

territory; j. assisting the Government in determining adat law community units as Village;

and k. providing guidance and supervise establishment of District/Municipality

regulation of VOE and Inter-Village cooperation institutions.

Article 115 Guidance and supervision conducted by District/Municipality Regional Government as stipulated in Article 112 clause (1) shall include:


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a. providing guidelines for the implementation of the assignment of District/Municipality affairs implemented by the Village;

b. providing guidelines for the drafting of Village Regulation and Village Head Regulation;

c. providing guidelines for the drafting of participatory development planning;

d. conducting facilitation of Village Governance;

e. conducting evaluation and supervision of Village Regulation;

f. establishing financing of balance funds allocation for the Village;

g. supervising the management of Village Finances and utilization of Village Assets;

h. conducting guidance and supervision of Village Administration governance;

i. organizing education and training for Village Government, Village Consultative Council, community institutions, and adat institutions;

j. giving awards for achievements conducted in governance of Village Administration, Village Consultative Council, community institutions, and adat institutions;

k. conducting efforts to accelerate rural development;

l. conducting efforts to accelerate Village Development through financial assistance, facilitation assistance, and technical assistance;

m. conducting capacity building of VOE and Inter-Village cooperation institutions; and

n. imposing sanctions for irregularities committed by Village Head according to provisions of statutory laws.

CHAPTER XV

TRANSITIONAL PROVISIONS

Article 116

(1) Villages that existed prior to this Law taking effect shall still be recognized as Villages.

(2) District/Municipality Regional Government shall establish Regional Bylaws regarding establishment of Village and Adat Village in their territory.

(3) Establishment of Village and Adat Village as stipulated in clause (2) shall take at the most 1 (one) year since this Law is enacted.

(4) At most 2 (two) years since this Law takes effect, District/Municipality Regional Governments along with Village Governments shall compile an inventory of Village Assets.

Article 117

The governance of existing Village Administrations shall adjust to the provisions of this Law.

Article 118

(1) The office term of current Village Heads shall still apply until the conclusion of their term.

(2) Periodization of Village Head terms of office shall follow the provisions of this Law.

(3) Current members of the Village Consultative Council shall still serve until the end of their term.


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(4) Periodization of the membership of Village Consultative Council shall follow the provisions of this Law.

(5) Village Apparatuses who do not have the status of civil servants shall still discharge their duties until the end of their term.

(6) Village Apparatuses having the civil servant status shall still discharge their duties until their placement is established with a Government Regulation.

CHAPTER XVI CONCLUDING PROVISIONS

Article 119

All statutory law provisions that directly pertain to the Village shall base and adjust their regulation with the provisions of this Law.

Article 120 (1) All existing implementing regulation regarding the Village shall remain applicable

as long as they do not contravene with this Law. (2) Government regulations of this Law shall be established with Government

Regulations at most 2 (two) years since this Law is enacted.

Article 121 At the time this Law takes effect, Article 200 until Article 216 of Law Number 32 Year 2004 regarding Regional Administration (State Gazette of the Republic of Indonesia Year 2004 Number 125, Addition to State Gazette of the Republic of Indonesia Number 4437) as changed several times, lastly changed by Law Number 12 Year 2008 regarding Second Amendment to Law Number 32 Year 2004 regarding Regional Administration (State Gazette of the Republic of Indonesia Year 2008 Number 59, Addition to State Gazette of the Republic of Indonesia Number 4844) shall be retracted and declared invalid.

Article 122 This law shall take effect on the date it is enacted. In order that every person becomes aware, ordering the promulgation of this Law by placing it in the State Gazette of the Republic of Indonesia.

Passed in Jakarta On 15 January 2014 PRESIDENT of the REPUBLIC of INDONESIA

DR. H. SUSILO BAMBANG YUDHOYONO

Enacted in Jakarta on January 15 2014 MINISTER OF LAW and HUMAN RIGHTS of the REPUBLIC OF INDONESIA,

AMIR SYAMSUDIN


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ELUCIDATION

TO REPUBLIC OF INDONESIA LAW

NUMBER 6 YEAR 2014 REGARDING VILLAGES

I. GENERAL

1. Rationale

Village or what is called by other names have existed since before the Unitary State of the Republic of Indonesia was formed. As proof of their existence, Elucidation to Article 18 of the 1945 Constitution of the Republic of Indonesia (before amendment) specifies that “Within the territory of the State of Indonesia there are more or less 250 “Zelfbesturende landschappen” and “Volkgemeenschappen”, such as desa in Java and Bali, Nagari in Minangkabau, dusun and marga in Palembang, and so forth. These regions have Original order and as such can be considered as regions of special nature. The State of the Republic of Indonesia respects the positions of these special regions and all state regulations that pertain to these regions will recall the rights of origin [hak asal usul] of these regions”. Thus, their existence shall obligatorily be recognized and afforded guarantees of their survivability within the Unitary State of the Republic of Indonesia.

The plurality of characteristics and types of Villages, or what are called by other names, did not become an obstacle for the founding founders of this nation to opt for the unitary state form. Even though it is realized that within a unitary state there needs to be homogeneity, the Unitary State of the Republic of Indonesia still affords recognition and guarantees for the existence of legal community unit and adat legal community units along with their traditional rights.

With regard to the order and governance of Regional Administration, after the amendment to the 1945 Constitution of the Republic of Indonesia, the regulation of Villages or what are called by other names from the administrative aspect refers to provisions of Article 18 clause (7) that affirms that “The order and procedures for the governance of Regional Administration shall be regulated in a law”. This means that Article 18 clause (7) of the 1945 Constitution of the Republic of Indonesia opens the possibility of an administration order within the system of administration of Indonesia.

Through amendments of the 1945 Constitution of the Republic of Indonesia, the recognition for adat legal community units was reaffirmed through provisions in Article 18B clause (2) that specifies that “The State shall recognize and respect the adat legal community units along with their traditional rights as long as they are still alive and consistent with the developments of society and the principle of the Unitary State of the Republic of Indonesia, that are regulated in law”.

In the history of Village regulation, several regulations regarding the Village were established, including Law Number 22 of 1948 regarding Principles of Regional


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Administration, Law Number 1 of 1957 regarding Principles of Regional Administration, Law Number 18 of 1965 regarding Principles of Regional Administration, Law Number 19 of 1965 regarding Desa Praja, Law Number 5 of 1974 regarding Principles of Administration in Regions, Law Number 5 of 1979 regarding Village Administration, Law Number 22 of 1999 regarding Regional Administration, and lastly Law Number 32 of 2004 regarding Regional Administration.

In the implementation, the regulation regarding Villages is yet to accommodate all kinds of interests and needs of Village communities that to date number around 73,000 (seventy three thousand) Villages and around 8,000 (eight thousand) Wards. Besides that, the implementation of prevailing Village regulation is no longer appropriate with the developments of time, especially among others pertaining to the position of adat legal community, democratization, plurality, community participation, as well as the advances and equity of development leading to interregional disparity,

poverty, and sociocultural problems that may disrupt the integrity of the Unitary State of the Republic of Indonesia.

This Law was drafted in the spirit of applying the constitutional mandate, namely the regulation of adat legal community in line with the provisions of Article 18B clause (2) to be regulated within the administrative order in line with the provisions of Article 18 clause (7). In spite of this, the legal authority of the adat legal community unit regarding the regulation of ulayat rights [customary land] shall refer to provisions of pertinent sectoral statutory laws.

With the construct of combining the function of a self-governing community with local self government [English in original], it is expected that the adat legal community unit that thus far have been parts of the Village territory, shall be organized in such a way so as to become Village and Adat Village. Village and Adat Village basically perform almost similar duties. The difference, meanwhile, are in the implementation of hak asal usul [rights of origin], especially pertaining to social conservation of the Adat Village, regulation and stewardship of adat territory, sidang perdamaian adat [lit, adat peace assembly/court], maintenance of peace and order for adat legal community, as well as regulation of administration implementation based on original order.

Adat village has functions of administration, Village finances, Village development, and receives facilitation and patronage from the District/Municipality government. In such a position, a Village and an Adat Village are subject to the same treatment from the Government and Regional Government. Thus, in the future Villages and Adat Villages may conduct changes to the face of the Village and an effective governance of the administration, implementation of development with usefulness as well as patronage of the communities in their respective regions. Within this same status,

Village and Adat Village shall be specifically regulated in this Law.

The Minister that currently handles Villages is the Minister of Home Affairs. In this position the Minister of Home Affairs establishes general regulation, technical guidelines, and facilitation regarding the governance of Village administration, implementation of Village Development, guidance of the Village, and empowerment of Village communities.


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2. Purpose and Principles of the Regulation

a. Purpose of the Regulation

The state government of the Republic of Indonesia was established to protect the entire nation of Indonesia and the entire motherland of Indonesia, promote public welfare, educate the life of the nation and take part in exercising world order on the principle of independence, eternal peace, and social justice.

Law Number 25 of 2004 regarding National Development Planning has established the National Long-Term Development Plan as an elaboration of the purposes of the formation of the state government of Indonesia. Villages that have rights of origin and traditional rights in regulating and managing the community interests have a role in realizing the vision of independence based on the 1945 Constitution of the Republic of Indonesia need to be protected and empowered in order to become strong, advanced, and democratic so they can create a solid foundation in conducting administration and development towards a just, wealthy, and prosperous society. Thereby, the goal of establishing Village regulation in this Law is a further elaboration of the provisions as meant in Article 18 clause (7) and Article 18B clause (2) of the 1945 Constitution of the Republic of Indonesia, namely:

1. provide recognition and respect for existing Villages with their plurality before and after the establishment of the Unitary State of the Republic of Indonesia;

2. provide clarity to the status and legal certainty for Villages within the state administrative system of the Republic of Indonesia for the sake of creating justice for all people of Indonesia;

3. preserve and promote customs, traditions, and culture of Village communities; 4. promote initiative, movement, and participation of Village communities in order

to develop Village potentials and Assets for common welfare; 5. establish a professional, efficient and effective, transparent, as well as

accountable Village Administration; 6. promote public services for members of Village community in order to expedite

the realization of public welfare; 7. promote sociocultural resilience of Village communities in order to realize

Village communities that are able to maintain social unity as part of national resilience;

8. promote the economy of Village communities and overcome the disparity of national development; and

9. strengthen the Village community as a subject of development.

b. Principles of the Regulation

Principles of regulation in this Law are: 1. recognition, that is the recognition to origin rights; 2. subsidiarity, that is the establishment of local-scale authority and local decision

making for the interests of Village community; 3. plurality, that is the recognition of and respect for value systems that prevail in

Village communities, but still by taking into consideration the common value system in the life as a nation and a state;


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4. cohesion, that is the spirit to play an active role and work together with the principle of mutual respect between institutions at the Village level and Village community elements in developing the Village;

5. mutual assistance, that is the habit of helping each other to build the Village; 6. familyness that is the habit of Village community members as part of a Village

community family unit; 7. consultations, that is decision-making process that pertain to Village

community interests through discussions with various parties of interest; 8. democracy, that is the system of organizing a Village community within an

administrative system conducted by the Village community or with the approval of the Village community as well as the sanctity of the honor and dignity of humans as creations of The One and Only God recognized, organized, and guaranteed;

9. self-reliance, that is a process conducted by the Village Government and Village community to conduct an activity in order to fulfill their needs with their own abilities;

10. participation, that is taking an active part in an activity; 11. equality, that is equality in status and role; 12. empowerment, that is efforts to promote quality of life and welfare of the Village

community by applying policies programs, and activities that are appropriate to the essence of problems and priorities of Village community needs; and

13. sustainability, that is a process conducted in a coordinated, integrated, and continuous manner in planning and implementing Village development programs.

14. Substance Material

This Law affirms that Village Governance, implementation of development, guidance, and community empowerment shall be based on Pancasila, the 1945 Constitution of the Republic of Indonesia, the Unitary State of the Republic of Indonesia, and Bhinneka Tunggal Ika [Sans. E Pluribus Unum].

This Law regulates materials regarding Regulation Principles, Status and Type of Villages, Village Organization, Village Authorities, Village Administration Governance, Rights and Obligations of the Village and Village community, Village Regulations, Village Finances and Village Assets, Village Development and Rural Area Development, Village-Owned Enterprise, Village Cooperation, Village Community institutions and Village Adat Institutions, as well as Patronage and Supervision. Aside from that, this Law also regulates with special provisions that only apply for Adat Villages as stipulated in Chapter XIII.

15. Village and Adat Village

A Villages or what is called by other names have characteristics that apply generally to the whole of Indonesia, whereas an Adat Village or what is called by other names has different characteristics from Villages in general, particularly due to the strong influence of adat over local administration system, management of local resources, and sociocultural life of the Village community.


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The Adat Village in principle is a legacy of local community administrative organization that has been maintained over generations that are still recognized and struggled for by the Adat Village leaders and communities in order that it can function to develop welfare and local sociocultural identity. The Adat Village have origin rights that are more dominant than the origin rights of Villages since Adat Villages were born as indigenous communities amid the society. Adat village is an adat legal community unit that historically has territorial borders and cultural identity that were formed on territorial basis with the authority to regulate and manage the interests of the Village community based on origin rights.

Basically, adat legal community units have been established based on three basic principles, namely the genealogical, territorial, and/or a combination of genealogical and territorial principles. What is regulated in this law is adat legal community that are part of genealogical and territorial principles. In that regard, the state recognizes

and respects the adat legal community unit along with their traditional rights as long as they are still alive and consistent with the developments of society and the principle of the Unitary State of the Republic of Indonesia. The implementation of adat legal community unit has been existing and living in the territory of the Unitary State of the Republic of Indonesia, such as huta/nagori in North Sumatra, gampong in Aceh, nagar in Minangkabau, marga in southern parts of Sumatra, tiuh or pekan in Lampung, desa pakraman/adat village in Bali, lembang in Toraja, banua and wanua in Kalimantan, and negeri in Maluku.

Along the way, Adat Villages have transformed to become more than 1 (one) Adat Village; 1 (one) Adat Village becoming a Village; more than 1 (one) Adat Village becoming a Village; or 1 (one) Adat Village that also functions as 1 (one) Village/Ward (kelurahan). For that reason, this Law allows a status change from Village or Ward to become Adat Village as long as it is still living and consistent with the developments of society and the principle of the Unitary State of the Republic of Indonesia upon the initiative of the community. Similarly, the status of Adat Village can change to become Village/Ward upon the initiative of the community.

The establishment of Adat Village for the first time shall be guided by the special provisions as stipulated in Chapter XIII of this Law. Establishment of a new Adat Village shall be guided by provisions as stipulated in Chapter III of this Law.

In the establishment of Adat Village as meant above, the main reference shall be the Decisions of the Constitutional Court of the Republic of Indonesia namely:

a. Decision Number 010/PUU-l/2003 regarding Examination of Law Number 11 of 2003 regarding Amendments to Law Number 53 of 1999 regarding the Establishment of Pelalawan District, Rokan Hulu District, Rokan Hilir District,

Siak District, Karimun District, Natuna District, Kuantan Singingi District, and Batam Municipality;

b. Decision Number 31/PUU-V/2007 regarding Examination of Law Number 31 of 2007 regarding Formation of Tual Municipality in Maluku Province;

c. Decision Number 6/PUU-Vl/2008 regarding Examinatino of Law Number 51 of 1999 regarding Formation of Buol District, Morowali District, and Banggai Kepulauan District; and

d. Decision Number 35/PUU–X/2012 regarding Examination of Law Number 41 of 1999 regarding Forestry.


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However, because the adat legal community unit established as Adat Village conducts the administrative function (local self government) then there is an absolute requirement, that is, of a territory with clear borders, an administration, and other apparatuses along with one of other institutions in the life of an adat legal community such as the sense of togetherness, wealth, and adat administrative institutions.

e. Village Institution

In this Law there are provisions regarding the institution of Village/Adat Village, namely the Village/Adat Village Administrative institution consisting of Village Government/Adat Village and Village/Adat Village Consultative Council, Village Social Institutios, and adat institution.

Village/Adat Village Head or as referred to by other names is the head of Village/Adat Village Administration who leads the governance or Village Administration. The Village/Adat Village Head or as referred to any other names has an important role in his position as the extension to the state who is close to the community and as leader of the community. With such a position, the principles of regulation pertaining to Village/Adat Village Head shall include:

a. reference of Village/Adat Village Head shall be adjusted to a local reference; b. Village/Adat Village head has the position as the Head of Village/Adat Village

Government and as leader of the community; c. Village Head shall be elected democratically and directly by the local

community, except for Adat Village that may use local mechanisms; and d. nomination of Village Head in direct elections shall not use political party base

so that Village Heads are prohibited from becoming political party administator. Mindful of the position, authority, and Village Finances that are getting stronger, Village Governance is expected to be more accountable that is supported by a system of oversight and balance between the Village Government and Village institution. Village institutions, especially the Village Consultative Council that in its position has an important function in preparing policies for Village Administration together with the Village Head, must have the same vision and mission as the Village Head so that the Village Consultative Council may not overthrow a Village Head democratically elected by the Village community.

e. Village Consultative Council

Village Consultative Council or as referred to by other names shall be the institution that conducts administrative functions whose members are representatives of Village residents based on territorial representation and established democratically.

The Village Consultative Council is a Consultative Council at the Village level that is involved in discussing and approving the various policies in Village Governance. In the effort to promote institutional performance at the Village level, strengthen solidarity, and promote participation and community empowerment, the Village Government and/or Village Consultative Council shall facilitate the holding of Village Assembly. Village Assembly or as referred to by other names is a consultative forum between the Village Consultative Council, Village Government, and community elements organized by the Village Consultative Council in order to deliberate and agree on strategic


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matters in the governance of Village Administration. Outcomes of the Village Assembly in the form agreements noted down in decision outcomes of the consultation shall be made as the basis by the Village Consultative Council and Village Government in establishing Village Administration policies.

f. Village Regulation

Village Regulation shall be established by the Village Head after discussing and agreeing with the Village Consultative Council and shall serve as the legal and policy framework in the governance of Village Administration and Village Development.

Establishment of Village Regulation is an elaboration of the various authorities possessed by the Village referring to provisions of higher statutory laws. As a legal product, Village Regulations cannot contradict higher regulations and cannot harm public interest, including:

a. disturbance to harmony between community members; b. disruption of access to public services; c. disturbance to peace and public order; d. disruption of economic activities to promote welfare of the Village community;

and e. discrimination of ethnicities, religion and belief, race, between groups, as well

as gender. As a political product, Village Regulations shall be processed democratically and in a participatory manner, in that the drafting process shall involve the participation of the Village community. The Village community shall have the right to propose or provide input to the Village Head and Village Consultative Council in the process of drafting Village Regulations.

The implementation of Village Regulations that regulate the Village authority based on origin rights and authority with local Village scale shall be supervised by the Village community and the Village Consultative Council. This is intended so that the implementation of Village Regulations can be consistently and sustainably supervised by members of the local Village community considering that Village Regulations are established for the interest of the Village community.

In the event that there are violations to the implementation of established Village Regulation, the Village Consultative Council shall have the obligation to remind and act upon the violation in question in line with authorities possessed. That is one of the supervisory functions possessed by the Village Consultative Council. Aside from the

Village Consultative Council, the Village community shall also have the right to conduct oversight and evaluation in a participatory manner over the implementation of Village Regulations.

The types of regulations that exist in the Village, aside from Village Regulations are Village Head Regulation and Joint Village Head Regulation.

f. Village Head Elections


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A Village Head shall be elected directly by and from Village population who are citizens of the Republic of Indonesia who meet the criteria with the office term of 6 (six) years counting from the date of the inauguration. A Village Head may hold office at most 3 (three) successive or non-successive office terms. While in the filling of office and the office term of the Adat Village Head provisions of adat law shall apply in the Adat Village as long as it is still living and consistent with the developments of society and the principle of the Unitary State of the Republic of Indonesia that is established in the District/Municipality Regional Bylaw guided by Government Regulation.

Specifically regarding Village Head elections in this Law it is regulated that it shall be held simultaneously across the territory of the District/Municipality with the purpose of avoiding negative matters in the implementation.

Simultaneous Village Head elections take into account the number of Villages and the

capacity to bear the cost of elections imposed on the District/Municipality Regional Revenue and Expenditure Budget in order to allow the implementation in waves as long as it is regulated in District/Municipality Bylaws.

As a consequence of implementing simultaneous Village Head election policy, in this Law the filling of a Village Head position dismissed before before expiration his term is also regulated. The position of the Adat Village Head shall be filled according to prevailing terms for Adat Village. In the event that there is a vacuum in the position of Adat Village Head, the District/Municipality Regional Government may establish an official coming from the Adat Village community in question.

g. Village Source of Revenue

A Village shall have a Village source of revenue that consists of own-source Village revenues, sharing of regional District/Municipality tax and levy revenues, part of central and regional finance balance funds received by the District/Municipality, budget allocation from the State Revenue and Expenditure Budget, financial assistance from the Regional Provincial Revenue and Expenditure Budget and District/Municipality Revenue and Expenditure Budget, as well as non-binding grants and donations from third parties.

Financial assistance from Provincial Regional Revenue and Expenditure Budget and District/Municipality Regional Revenue and Expenditure Budget to the Village shall be given according to the financial capacity of the Regional Government in question. Such assistance shall be aimed at accelerating Village Development. Other sources of

revenue that can be endeavored by the Village may originate from Village-Owned Enterprise, Village market management, Village-scale tourist zone management, management of non-metal mineral mining and rock mining that does not use heavy equipment, as well as other sources and are not to be bought and sold.

Part of the funds from the Balance Funds received by the District/Municipality Regional Government shall be at least 10% (ten per cent) after subtracting the Special Allocation Funds to be further called the Village Allocation Funds.


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Budget allocation for Villages sourced from the Central Expenditure shall be done in order to make effective Village-based programs in an even and equitable manner.

10. Development of Villages and Rural Areas Village Development shall be aimed to promote the welfare of the Village community and human quality of life as well as alleviate poverty through the provision fulfillment of basic needs, developing facilities and infrastructure, developing local economic potentials, as well as utilizing natural resources and the environment sustainably. For that purpose, this Law shall employ 2 (two) approaches, namely the ‘Desa membangun’ [the Village develops] and ‘membangun Desa’ [developing the Village] that are integrated in Village Development Planning. As a consequence, Villages shall prepare development planning according to their

authorities by referring to District/Municipality development planning. The Village Development plan document shall be the only planning document in the Village and serves as the basis for preparing the Village Revenue and Expenditure Budget. Village Development Planning shall be held by involving the Village community through Village Development Planning Deliberations. Village Development Planning Deliberations shall establish priorities, programs, activities, and needs of Village Development that are funded by the Village Revenue and Expenditure Budget, community-own funds, and/or District/Municipality Regional Revenue and Expenditure Budget based upon the assessment of Village community needs. Village Development shall be performed by the Village Government and Village community in the spirit of communality and by utilizing local wisdoms and Village natural resources. The implementation of sectoral programs that enter the Village shall be informed to the Village Government and integrated with the Village Development Plan. Village community shall have the right to obtain information and conduct monitoring about the plans and implementation of Village Development. In line with the demands and dynamics of national development, development of Rural Areas need to be conducted. Development of Rural Areas shall be the combination of inter-Village development in a District/Municipality as an effort to accelerate and promote the quality of services, development, and empowerment of Village communities in Rural Areas through the participatory development approach. For that reason, the Rural Area development design shall be discussed jointly by the Government, Provincial Regional Government, District/Municipality Regional Government, and Village Government.

11. Village Community institutions

Village community institutions shall be established in the Village, such as neighborhood associations [rukun tetangga], residential associations [rukun warga], family welfare patronage [pembinaan kesejahteraan keluarga], youth clubs [karang taruna], and community empowerment institutions or as referred to by other names. Village community institutions shall have the task to assist the Village Government and are partners in empowering the Village community.

Village community institutions function as a forum for Village community participation in development, administration, social activities, and empowerment that


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aim to realize democratization and transparency at the community level and creating access so that communities play a more active role in development activities.

12. Village Adat Institutions

Adat legal community units that are still living and consistent with the developments of society and the principle of Unitary State of the Republic of Indonesia shall be the center of community life of independent nature. Within adat legal community units, adat institutions that have grown and developed in the community’s life are recognized. In their existence, adat legal communities have an adat law territory and rights to the wealth contained within the adat law territory and shall have the right and authority to regulate, manage, and resolve various life problems of the Village community that pertain to prevailing customs and traditions and adat law. The Adat Village institutions shall be partners to the Village Government and other Village

institutions in empowering the Village community.

13. Special Provisions

Specifically for the Province of Aceh and the Provinces of Papua, the District/Municipality Regional Governments in establishing policies regarding Village regulation aside from minding the provisions of this Law shall also take into account:

a. Law Number 21 of 2001 regarding Special Autonomy for the Province of Papua; and

b. Law Number 11 of 2006 regarding Aceh Administration.

II. ARTICLE BY ARTICLE

Article 1 Sufficiently clear.

Article 2

Sufficiently clear. Article 3 Sufficiently clear. Article 4 Sufficiently clear. Article 5

Villages that are situated in District/Municipality territory shall be formed within the state administrative system as purported in Article 18 of the 1945 Constitution of the State of the Republic of Indonesia.

Article 6

This provision is intended to prevent overlaps in the territory, authorities, institutional duplication between Village and Adat Village in 1 (one) territory then in 1 (one) territory there shall only be a Village or an Adat Village.


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For cases where overlaps have occurred between Villages and Adat Villages within 1 (one) territory, one type of Village must be selected pursuant to provisions of this Law.

Article 7

Clause (1) Sufficiently clear.

Clause (2) Sufficiently clear. Clause (3) Sufficiently clear. Clause (4) Letter a Sufficiently clear. Letter b Sufficiently clear. Letter c Sufficiently clear. Letter d

What is meant by “status change” is a change from Village to become Ward and change of Ward to become Village as well as a change of Adat Village to become Village.

Letter e What is meant by “establishment of Adat Village” is the establishent of adat legal community unit and existing Adat Village for the first time by the District/Municipality to become Adat Village with a District/Municipality Regional Bylaw.

Article 8 Clause (1)

Formation of the Village may be in the form of: splitting from 1 (one) Village to become 2 (two) Villages or more; merging of Village parts from neighboring Villages to become 1 (one) Village; or merging of several Villages to become 1 (one) new Village.

Clause (2) Sufficiently clear. Clause (3)

Sufficiently clear. Clause (4) Sufficiently clear.

Clause (5) Sufficiently clear. Clause (6) Sufficiently clear. Clause (7) Sufficiently clear. Clause (8) Sufficiently clear.


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Article 9 What is meant by “strategic national program” includes among others programs to build reservoirs or dams that cover entire Village areas.

Article 10 Sufficiently clear. Article 11 Clause (1) Sufficiently clear. Clause (2)

What is meant by “becoming the burden of District/Municipality Regional Revenue and Expenditure Budget” shall include provision of retirement package funds for Village Heads and Village apparatuses who are terminated due to status change of Village to become Ward.


What is meant by “changing the status of Ward to become Village” is a status change of a Ward to become a Village or parts of a Ward to become a Village and parts of it remaining a Ward. This matter shall be done within a certain period of time to adapt the existence of a Ward whose community is still of rural nature.

Clause (2) Sufficiently clear. Clause (3) Sufficiently clear.

Article 13

What is meant by “zone of special and strategic nature” such as outermost zones in international border regions, transmigration program, and other programs considered as strategic.

Article 14 Sufficiently clear. Article 15 Sufficiently clear. Article 16 Sufficiently clear.

Article 17 Clause (1) Sufficiently clear. Clause (2)

Creation of Village territorial border map shall involve relevant technical agencies.


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Article 18 What is meant by origin rights and customs and traditions of the village are rights that are still living and consistent with the development of society life and the principle of the Unitary State of the Republic of Indonesia.

Article 19 Letter a

What is meant by origin rights are rights that are the living legacy and Village initiatives or Village Community initiatives in line with developments of society life, including adat community organization system, institutions, management and adat law, Village land assets, and agreements in the life of the Village community.

Letter b What is meant by “local Village-scale authority” are authorities to regulate and manage interests of the Village community that have been conducted by the Village yang or able and effectively conducted by the Village or those that appear due to Village developments and initiatives of the Village community, including boat moorings, Village markets, public baths, irrigation channels, environmental sanitation, integrated service posts, art and learning workshops, as well as Village library, Village ponds, and Village roads.

Letter c Sufficiently clear. Letter d Sufficiently clear. Article 20

Sufficiently clear. Article 21 Sufficiently clear. Article 22 Sufficiently clear. Article 23 Sufficiently clear. Article 24 Letter a

What is meant by “legal certainty” is the principle in a legal state that

prioritizes the foundation of statutory laws, propriety, and justice in every policy of Village Governance.

Letter b What is meant by “governance orderliness” is the principle that serves as the basis for orderliness, harmony, and balance in the control of Village Governance.


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Letter c What is meant by “public interest orderliness” is the principle that prioritizes public welfare in an aspiratory, accommodative, and selective manner.

Letter d What is meant by “transparency” is the principle that opens itself to the right of the public to obtain truthful, honest, and non-discriminatory information regarding Village Governance by still taking into consideration provisions of statutory laws.

Letter e What is meant by “proportionality” is the principle that prioritizes the balance between rights and obligations of Village Governance.

Letter f What is meant by “professionalism” is the principle that prioritizes merit based on codes of ethics and provisions of statutory laws.

Letter g What is meant by “accountability” is the principle that determines that every activity and outcome of activities of Village Governance must be held to account with the Village community pursuant to provisions of statutory laws.

Letter h What is meant by “effectiveness” is the principle that determines that every activity conducted must successfully achieve the goals desired by the Village community. What is meant by “efficiency” is the principle that determines that every activity conducted must be appropriate according to plan and purpose.

Letter i What is meant by “local wisdom” is the principle that stresses that every policy-making must consider the needs and interests of the Village community.

Letter j What is meant by “plurality” is Village Governance that shall not discriminate certain community groups.

Letter k What is meant by “participative” is Village Governance that involves the Village institutions and Village community elements.

Article 25

Other references to Village Head and Village apparatuses may use local naming. Article 26

Clause (1) Sufficiently clear. Clause (2) Sufficiently clear. Clause (3) Letter a Sufficiently clear. Letter b Sufficiently clear.


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Letter c Health insurance given to the Village Head shall be integrated with service assurances conducted by the Government pursuant to provisions of statutory laws.

Letter d Sufficiently clear. Letter e Sufficiently clear. Clause (4) Sufficiently clear. Article 27 Sufficiently clear. Article 28 Sufficiently clear. Article 29 Sufficiently clear. Article 30 Sufficiently clear. Article 31 Sufficiently clear. Article 32 Clause (1)

Copy of Village Consultative Council notice to Village Head regarding the expiration of the Village Head’s office term shall be delivered to the Bupati/Mayor.

Clause (2) Sufficiently clear. Clause (3) Sufficiently clear. Clause (4)

What is meant by “community figures” are religious figures, adat figures, education figures, and other community figures.


Article 34 Clause (1) Sufficiently clear. Clause (2) Sufficiently clear. Clause (3) Sufficiently clear. Clause (4)


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Sufficiently clear. Clause (5) Sufficiently clear. Clause (6)

Cost of Village Head elections that are levied on the District/Municipality Revenue and Expenditure Budget is for the procurement of ballots, ballot boxes, other equipment, honoraria of election committee, and cost of inauguration.

Article 35 Sufficiently clear. Article 36 Sufficiently clear. Article 37 Sufficiently clear. Article 38 Sufficiently clear. Article 39

What is meant by “counting from the date of inauguration” is that when someone who has been inaugurated as the Village Head then if the person in question resigns before the end of his office term he shall be considered to have served one office term of 6 (six) years. A Village Head who has served on office term based on Law Number 32 of 2004 shall be given the opportunity to re-nominate him/herself at most 2 (two) more terms. Meanwhile, Village Heads who have held 2 (two) office terms pursuant to Law Number 32 of 2004 shall be given the opportunity to re-nominate him/herself only (1) one term.

Article 40 Clause (1) Sufficiently clear. Clause (2) Letter a

What is meant by “office term expires” is when a Village Head whose 6 (six) year term has expired since the date of inauguration must be dismissed. In the event that there is no elected candidate and an election cannot be conducted, a caretaker shall be appointed.

Letter b What is meant by “unable to discharge the duties in a sustainable manner or permanently hindered” is when a Village Head suffers an illness that causes, physically as well as mentally, him/her not functioning normally as proven with a certificate from a competent physician and/or his/her whereabouts are not known.

Letter c Sufficiently clear.

Letter d


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Sufficiently clear. Clause (3) Sufficiently clear.

Clause (4) Sufficiently clear. Article 41 Sufficiently clear. Article 42 Sufficiently clear. Article 43 Sufficiently clear. Article 44 Sufficiently clear. Article 45 Sufficiently clear. Article 46 Clause (1) What is meant by “no more than 1 (one) year” is 1 (one) year or less. Clause (2) Sufficiently clear. Article 47 Clause (1) Sufficiently clear. Clause (2) Sufficiently clear. Clause (3)

What is meant by “Village Assembly” are consultations held by the Village Consultative Council specifically for the intertemporal election of the Village Head (not deliberations of the Village Consultative Council), that is since the nomination of candidates, election of candidates, and establishment of the candidate-elect.


Clause (5)

Office term of a Village Head elected through Village Assembly starting since the person in question is inaugurated by the Bupati/Mayor or an appointed official.

Clause (6) Sufficiently clear. Article 48 Sufficiently clear.


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Article 49 Clause (1) Sufficiently clear. Clause (2)

What is meant by Sub-district Head is Camat or as referred to by other names.

Clause (3) Sufficiently clear. Article 50 Sufficiently clear. Article 51 Sufficiently clear.

Article 52 Sufficiently clear. Article 53 Sufficiently clear. Article 54 Clause (1)

Village Assembly is a meeting forum of all stakeholders that exist in the Village, including its community, in order to determine matters of importance to be conducted by the Village Government and also pertaining to the needs of the Village Community. This outcome shall serve as reference for the Village Government apparatus and other institutions in the discharge of their duties.

What is meant by “community elements” are among others adat figures, religious figure, community figures, education figures, representatives of farmer groups, fishermen groups, craftsmen groups, women groups, and poor community groups.

Clause (2) Letter a

In regard to Village organization, Village Assembly only provides considerations and inputs to the District/Municipality Regional Government.


Clause (4) Sufficiently clear. Article 55 Sufficiently clear. Article 56

Clause (1)


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What is meant by “established by way of democracy” is that it can be processed through a direct election process and through representative deliberations process.

Clause (2) Membership term of the Village Consultative Council shall be counted since the date of the pronouncement of the oath/pledge.

Clause (3) Sufficiently clear. Article 57 Sufficiently clear. Article 58 Sufficiently clear. Article 59 Sufficiently clear. Article 60 Sufficiently clear. Article 61 Letter a

What is meant by “soliciting information” is solicitations of informative nature regarding the governance, development implementation, guidance, and Village community empowerment, not in the context of the Village Head’s accountability report.

Letter b Sufficiently clear. Letter c Sufficiently clear. Article 62 Sufficiently clear. Article 63 Sufficiently clear. Article 64 Sufficiently clear.

Article 65 Sufficiently clear. Article 66 Clause (1) Sufficiently clear. Clause (2) Sufficiently clear. Clause (3)


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Sufficiently clear. Clause (4)

Health insurance afforded to the Village Head shall be integrated with health insurance conducted by the Government pursuant to provisions of statutory laws. Before the Social Insurance Administrative Body [BPJS] reaches the Village level, health insurance may be conducted through cooperation of District/Municipality with State-Owned Enterprises or by issuing health insurance cards according to the financial capacity of respective regions that are stipulated by District/Municipality Bylaw.

Clause (5) Sufficiently clear. Article 67 Sufficiently clear. Article 68 Sufficiently clear. Article 69 Sufficiently clear. Article 70 Sufficiently clear. Article 71 Sufficiently clear. Article 72 Clause (1) Letter a

What is meant by “Village own-source revenues” are revenues originating from Village authority based on the origin rights and local-scale Village authority. What is meant by “business proceeds” shall also include VOE and Communally Owned Village Land (tanah bengkok).

Letter b What is meant by “Budget originating from the State Income and Expenditure Budget” is budget that is allocated for the Village and Adat Village that is transferred through the District/Municipality Revenue and Expenditure Budget that is used to finance the

governance, development, community empowerment, and social affairs.

Letter c Sufficiently clear. Letter d Sufficiently clear. Letter e Sufficiently clear. Letter f


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Sufficiently clear. Letter g

What is meant by “other legitimate Village revenues” are among others revenues as proceeds from cooperation with third parties and assistance of corporations located in the Village.

Clause (2) The budget allocation designated directly to the Village is determined to be 10% (ten per cent) of and outside the Regional Transfer funds (on top) [English in original] in stages.

Budget originating from State Revenue and Expenditure Budget shall be calculated based on the number of Villages and allocated by considering the population size, poverty rate, territorial area, and geographic difficulties in order to promote welfare and equity of Village development.


Clause (4) Sufficiently clear. Clause (5) Sufficiently clear. Clause (6) Sufficiently clear.



In establishing Village expenditure incentives can be allocated to neighborhood units (RT) and residential units (RW) with the consideration that RT and RW even though as community institutions, RT and RW help the discharge of duties of administrative services, development planning, order, and Village community empowerment.

Clause (2) What is meant by “not limited” is development needs outside of basic services needed by the Village community. What is meant by “primary needs” are food, clothing, and housing needs. What is meant by “basic services” are among others education, health, and basic infrastructure.

Article 75

Sufficiently clear. Article 76


Clause (2) Letter a Sufficiently clear. Letter b


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What is meant by “donation” include waqf [benefacted] land pursuant to provisions of statutory laws.


Letter d Sufficiently clear. Letter e Sufficiently clear.





Article 77








Sufficiently clear.


Article 86


Clause (1)


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A Village-owned Enterprise (VOE) may be established by the Village Government to utilize all economic potentials, economic institutions, as well as natural resource and human resource potentials in order to promote the welfare of the Village community. VOE specifically cannot be equated with other legal entities such as limited liability corporations, firms or cooperatives. For that reason, Village-owned Enterprise is an enterprise with Village characteristics which in the implementation of activities in addition to helping Village Governance, also to meet the needs of the Village community. Village-owned Enterprise also may undertake the functions of service provisions, commerce, and other economic developments. In increasing sources of Village revenue the VOE may collect savings on the local Village community scale, including through management of revolving funds and savings and loans. A Village-owned Enterprise in its activities is not only oriented towards financial profit Village-owned Enterprise shall also be oriented to support the promotion of Village community welfare. A Village-owned Enterprise shall be expected to develop business units to utilize the economic potential. In regard to business activities able to operate and develop well, it is very much possible that in time Village-owned Enterprise may follow the form of legal entity as established in provisions of statutory laws.



Article 88

Sufficiently clear.


Article 90

Letter a Sufficiently clear.

Letter b What is meant by “facilitation” includes provision of facilitator and management human resource.


Article 91



Sufficiently clear.


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Article 94



Establishment of an adat legal community unit and Adat Village that presently exist to become Adat Village shall only be done once.

Article 97 This provision is in line with the Decisions of the Constitutional Court, namely: Decision Number 010/PUU-l/2003 regarding Examination of Law Number 11 of 2003 regarding Amendments to Law Number 53 of 1999 regarding the Establishment of Pelalawan District, Rokan Hulu District, Rokan Hilir District, Siak District, Karimun District, Natuna District, Kuantan Singingi District, and Batam Municipality; Decision Number 31/PUU-V/2007 regarding Examination of Law Number 31 of 2007 regarding Formation of Tual Municipality in Maluku Province; Decision Number 6/PUU-Vl/2008 regarding Examinatino of Law Number 51 of 1999 regarding Formation of Buol District, Morowali District, and Banggai Kepulauan District; and Decision Number 35/PUU–X/2012 regarding Examination of Law Number 41 of 1999 regarding Forestry


What is meant by “Adat village establishment” is the establishment for the first time.


Article 99 Sufficiently clear. Article 100 Clause (1)

Status change of Adat Village to become a Ward must go through Village, conversely a status change of a Ward to become Adat Village must go through the Village.

Clause (2) Sufficiently clear. Article 101 Sufficiently clear. Article 102 Sufficiently clear.


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Article 103 Letter a

What is meant by “original order” is a system of organization of Adat Village life recognized in the respective territories.

Letter b What is meant by “ulayat or adat territory” is a living territory of an adat legal community unit.

Letter c Sufficiently clear. Letter d Sufficiently clear. Letter e Sufficiently clear. Letter f Sufficiently clear. Letter g Sufficiently clear. Article 104

What is meant by “plurality” is the Governance of Adat Village that may not discriminate against certain community groups.

Article 105 Sufficiently clear. Article 106 Sufficiently clear. Article 107 Sufficiently clear. Article 108 Sufficiently clear. Article 109 Sufficiently clear. Article 110 Sufficiently clear. Article 111

Sufficiently clear. Article 112 Clause (1)

Government in this regard is the Minister of Home Affairs who conducts general patronage of Village Governance. Provincial Regional Government in this regard is the Governor as the Central Government representative.

Clause (2)


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Sufficiently clear. Clause (3)

Government in this regard The Minister of Home Affairs who performs community empowerment. Provincial Regional Government in this regard the Governor as the Central Government representative.

Clause (4) What is meant by “facilitation” includes provision of facilitator and management human resource.

Article 113 Sufficiently clear. Article 114 Sufficiently clear. Article 115 Letter a Sufficiently clear. Letter b

Sufficiently clear. Letter c

Sufficiently clear. Letter d

Sufficiently clear. Letter e

What is meant by “supervision” includes annulment of Village Regulations.

Letter f Sufficiently clear.

Letter g Sufficiently clear.

Letter h Sufficiently clear.

Letter i Sufficiently clear.

Letter j Sufficiently clear.

Letter k Sufficiently clear.

Letter l

Sufficiently clear. Letter m

Sufficiently clear Letter n

Sufficiently clear. Article 116 Clause (1) Sufficiently clear.


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Clause (2) Pursuant to provisions of prevailing statutory laws, before this Law, it was Village that was recognized. Thus, with the enactment of this Law authorities are given to District/Municipality Regional Government to reorganize the status of Villages to become either Village or Adat Village with the condition that they cannot add the number of Villages.

Clause (3) Sufficiently clear. Clause (4) Sufficiently clear.

Article 117 Sufficiently clear. Article 118 Sufficiently clear. Article 119 Sufficiently clear. Article 120 Sufficiently clear. Article 121 Sufficiently clear. Article 122 Sufficiently clear.

Law 6 2014 on Villages, English (2).PDF (UU No 6 in English)

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