Redefining Justice: How Mismanaged Village Funds Threaten Community Well-Being

Ira Megasyara, Suryani Yuli Astuti, Guruh Marhaenis Handoko Putro

Abstract


This study examines the influence of opportunistic behavior driven by the love of money on village fund management and its impact on the prosperity of village communities, particularly in the distribution of Direct Cash Assistance (BLT). Misuse of funds, such as data manipulation and fund reduction, undermines the effectiveness of aid and promotes social injustice. Using a mixed method (quantitative and qualitative) and path analysis with SmartPLS, 104 samples were collected from villages in two sub-districts of Lamongan Regency. The findings reveal that opportunistic behavior and love of money significantly affect village fund management and community prosperity. Furthermore, village fund management significantly mediates the relationship between these variables and community prosperity. These results highlight the importance of strengthening supervision, transparency, and accountability in managing village funds. Effective collaboration between the government, communities, and oversight institutions is essential to prevent fund misuse and ensure that village funds are used fairly and efficiently to sustainably improve community welfare.


Keywords


Community Prosperity; Financial Transparency; Opportunism in Administration; Village Fund Management; Village Fund Misuse.

Full Text:

PDF

References


Aini, K. A., & Rahayu, R. A. (2022). Love of money, financial literacy, locus of control dan gender terhadap pengelolaan keuangan pribadi pelaku UMKM. Jurnal Ilmiah Akuntansi Kesatuan, 10(3), 433–442. https://doi.org/10.37641/jiakes.v10i3.1417

Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T

Alvi, T. H., Tariq, S., Atif, M. M., Ozturk, I., & Saeed, M. (2024). Spirit at work: a panacea for ethical problems caused by marketing managers’ love of money. Journal of Asia Business Studies, 18(6), 1647–1667. https://doi.org/10.1108/JABS-01-2024-0035

Alwi, Z., Parmitasari, R. D. A., Syariati, A., & Sidik, R. B. (2021). Hadith corresponding thoughts on the ethical interacting behavior of young entrepreneurs in Indonesia. Journal of Asian Finance, Economics and Business, 8(3), 331–339. https://doi.org/10.13106/jafeb.2021.vol8.no3.0331

Azmi, U. (2023). Korupsi dana desa ratusan juta, mantan kepala desa di Maos Cilacap jadi tersangka. Serayunews.

Conner, K. R., & Prahalad, C. K. (1996). A resource-based theory of the firm: knowledge versus opportunism. Organization Science, 7(5), 477–501. https://doi.org/10.1287/orsc.7.5.477

Cuadrado-Ballesteros, B., & Bisogno, M. (2021). Public sector accounting reforms and the quality of governance. Public Money and Management, 41(2), 107–117. https://doi.org/10.1080/09540962.2020.1724665

Cui, L. (2025). Incentive contract design and selection for inhibiting unethical collusion in construction projects. Engineering, Construction and Architectural Management, 32(2), 870–892. https://doi.org/10.1108/ECAM-03-2023-0272

DeGrave, A., Boang Manalu, R. V., & Wekan, R. J. (2021). Pengaruh pendapatan asli daerah dan flypaper effect terhadap perilaku oportunistik penyusun anggaran. Akuntabilitas, 14(1), 13–26. https://doi.org/10.15408/akt.v14i1.17891

Fan, Z., Wang, T., Han, Z., & Jia, Y. (2025). Political affinity and opportunism in global supply chain: The mediating role of contractual and relational governance. International Business Review. https://doi.org/10.1016/j.ibusrev.2025.102415

Fransiska, H., & Sri, D. (2024). Pengaruh financial awareness dan love of money terhadap pengelolaan keuangan generasi z. Jurnal Informasi Akuntansi, 3(1).

Hossain, M. S., Islam, M. Z., Ali, M. S., Safiuddin, M., Ling, C. C., & Fung, C. Y. (2025). The nexus of tax avoidance and firms characteristics – does board gender diversity have a role? Evidence from an emerging economy. Asia-Pacific Journal of Business Administration, 17(2), 401–427. https://doi.org/10.1108/APJBA-10-2023-0521

Inge, N. (2020, June 13). Penyelewengan BLT dana desa terjadi di 9 Daerah di Sumsel. Liputan6.

Jain, S., Khan, M. N., & Mishra, S. (2017). Understanding consumer behavior regarding luxury fashion goods in India based on the theory of planned behavior. Journal of Asia Business Studies, 11(1), 4–21. https://doi.org/10.1108/JABS-08-2015-0118

Koropp, C., Kellermanns, F. W., Grichnik, D., & Stanley, L. (2014). Financial decision making in family firms: an adaptation of the theory of planned behavior. Family Business Review, 27(4), 307–327. https://doi.org/10.1177/0894486514522483

Kusumo, W. K., Achmad, T., & Zulaikha. (2022). Effectiveness of internal control system as early detection tool in fraud prevention of village fund management. Review of Economics and Finance, 20, 119–123. https://doi.org/10.55365/1923.X2022.20.12

Liu, X., Geng, L., Liu, D., & Lin, S. (2025). Psychological bonding mechanisms and value creation in construction projects: mediating role of participants’ behaviors. Journal of Construction Engineering and Management, 151(3). https://doi.org/10.1061/JCEMD4.COENG-15484

Pamungkas, W. R. P., & Rofiqoh, I. (2025). Investigating audit quality determinants : evidence from the mining industry in Indonesia. Jurnal Informasi, Perpajakan, Akuntansi, Dan Keuangan Publik, 20(1), 1–18. https://doi.org/10.25105/jipak.v20i1.21651

Park, H., & Blenkinsopp, J. (2009). Whistleblowing as planned behavior - A survey of south korean police officers. Journal of Business Ethics, 85(4), 545–556. https://doi.org/10.1007/s10551-008-9788-y

Pradana, A. R. Y. (2022). BLT dana desa di Blora kembali disalahgunakan, polisi periksa kepala desa”, Klik untuk baca: https://regional.kompas.com/read/2022/09/28/141206778/blt-dana-desa-di-blora-kembali-disalahgunakan-polisi-periksa-kepala-desa. Kompascom+ baca berita tanpa iklan: https://kmp.im/plus6 Download aplikasi: https://kmp.im/app6. Kompas.

Sessy, O. :, & Wandi, W. (2022). Perilaku oportunistik mekanisme pengawasan dan financial distress terhadap manajemen laba dengan kepemilikan manajerial sebagai variabel moderasi. Balance : Jurnal Akuntansi dan Bisnis, 7(2), 90–104. http://jurnal.um-palembang.ac.id/balance

Shaleh, K., Subing, H. J. T., & Yustina, A. I. (2020). Village financial management: based on local tradition. Integrated Journal of Business and Economics, 4(1), 23. https://doi.org/10.33019/ijbe.v4i1.245

Sholehah, N. L. H., & Ishak, P. (2022). Pengaruh opportunistic behaviour dan love of money perangkat desa terhadap pengelolaan keuangan desa dan dampaknya terhadap kesejahteraan masyarakat. Gorontalo Accounting Journal, 5(1), 86. https://doi.org/10.32662/gaj.v5i1.1853

Supiani, E. (2020). Studi deskriptif opportunistic behavior dalam pengelolaan keuangan desa. Jurnal Studi Akuntansi Dan Keuangan, 3(1), 2020–2069.

Su’Un, S., Rahim, S., Nurwanah, A., Junaidi, J., & Putra, R. A. (2023). The role of love of money on employees’ organizational commitment: do ethics and pay satisfaction matter? Management and Accounting Review, 22(2), 205–228.

Taing, H. B., & Chang, Y. (2021). Determinants of tax compliance intention: focus on the theory of planned behavior. International Journal of Public Administration, 44(1), 62–73. https://doi.org/10.1080/01900692.2020.1728313

Tang, N., Li, Z., Chen, J., & Tang, T. L.-P. (2022). Behavioral economics: who are the investors with the most sustainable stock happiness, and why? Low aspiration, external control, and country domicile may save your lives—monetary wisdom. Asian Journal of Business Ethics, 11(2), 359–397. https://doi.org/10.1007/s13520-022-00156-z

Wahyudi, S., Achmad, T., & Pamungkas, I. D. (2021). Village apparatus competence, individual morality, internal control system and whistleblowing system on village fund fraud. WSEAS Transactions on Environment and Development, 17, 672–684. https://doi.org/10.37394/232015.2021.17.65

Wahyudi, S., Achmad, T., & Pamungkas, I. D. (2022). Prevention village fund fraud in indonesia: moral sensitivity as a moderating variable. Economies, 10(1). https://doi.org/10.3390/economies10010026

Wang, T., Han, Z., Fan, Z., & Jia, Y. (2025). Impact of changes in political affinity on opportunism in global supply chain: The moderating role of national culture. Journal of International Management, 31(1). https://doi.org/10.1016/j.intman.2024.101206

Wickramasinghe, V. (2023). Understanding pay satisfaction in public sector: evidence from Sri Lanka. Journal of Asia Business Studies, 17(3), 477–503. https://doi.org/10.1108/JABS-02-2021-0078

Yadav, R., & Pathak, G. S. (2017). Determinants of consumers’ green purchase behavior in a developing nation: applying and extending the theory of planned behavior. Ecological Economics, 134, 114–122. https://doi.org/10.1016/j.ecolecon.2016.12.019

Yoon, C. (2011). Theory of planned behavior and ethics theory in digital piracy: an integrated model. Journal of Business Ethics, 100(3), 405–417. https://doi.org/10.1007/s10551-010-0687-7

Yuanita, D. W., & Dewi, C. N. (2021). Analisis perwujudan good governance melalui akuntabilitas publik dan meminimalkan perilaku oportunistik di dalam lingkungan pemerintahan daerah. SALAM: Islamic Economics Journal, 2(1).

Zhou, Y., Liu, J., Pu, X., & Ding, Y. (2025). Signaling game analysis of transfer mechanisms of PPP projects: considering investors’ moral hazard and adverse selection behavior. Journal of Construction Engineering and Management, 151(5). https://doi.org/10.1061/JCEMD4.COENG-15384




DOI: http://dx.doi.org/10.21043/aktsar.v8i1.31639

Refbacks

  • There are currently no refbacks.


Creative Commons Licence
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.