Village Funds are a form of implementation of the Village Law in Indonesia which has been carried out since 2015. More than 75 thousand villages in Indonesia have received an average of IDR1 billion each year. It can be used to accelerate improving the welfare of village communities in Indonesia. This research was conducted to test whether the objectives of village funds had been achieved. Primarily in three main aspects, namely overcoming unemployment, reducing poverty and improving village economic conditions. By using an Inclusive Growth perspective, this research ultimately concludes that the existence of village funds in Indonesia has contributed quite positively in terms of reducing unemployment and improving village economic conditions, through Badan Usaha Milik Desa (BUMDesa)/ Village-owned Enterprises institutions, improving village economic infrastructure and increasing the purchasing power of village communities. This research has not concluded that village funds have had an impact on reducing poverty, because the issue of poverty has not been a criterion in determining village fund programs.
