MULTIVARIATE ANALYSIS MODEL VIEWPOINT : THE INFLUENCE OF ALLO

CATION OF VILLAGE FUND ON COMMUNITY WELFARE AND COMMUNITY

EMPOWERMENT

Sri Suartini1, Hari Sulistiyo1, Harpa Sugiharti2, Nanu Hasanuh1, Raden Aditya
Kristamtomo Putra3
1
Accounting Study Program, Universitas Singaperbangsa Karawang, Jalan HS.Ronggo
Waluyo, Karawang, Indonesia 41361
2
Accounting Education, Universitas Pendidikan Indonesia, Jalan Setiabudi No.229,
Bandung, Indonesia 40154
3
Entrepreneurship Department, BINUS Business School Undergraduate Program, Bina Nusan
tara University, Jakarta, Indonesia 11480
Email : sri.suartini@feb.unsika.ac.id

Abstract

This study aimed to determine the Effect of Village Fund Allocation on Community Welfare
and Community Empowerment. This study used primary data collected usin direct distributi
on of questionnaires. The population in this study consisted of village officials and the comm
unity in Mekarbuana Village with a sample of 98 respondents. Statistical analysis used in this
study was Multivariate Analysis or MANOVA. The function of MANOVA in this study was
to determine the partial effect of village fund allocation on community welfare and on comm
unity empowerment. This study also aimed to determine the simultaneous effect of village fu
nd allocation on community welfare and community empowerment. The results showed that
partially the allocation of village funds had no effect on community welfare and community e
mpowerment and the simultaneous allocation of village funds had no effect on community w
elfare and community empowerment.

Key Words : Allocation of Village Fund , Community Welfare and Community Empowerme
nt

INTRODUCTION
The Indonesian government continuously improves the citizen welfare including rur
al communities. Welfare is a basic right of all elements of Indonesian society and needs the h
ard work from both the community and the government to achieve it. Economic growth cann
ot only be enjoyed by people in urban areas, but it can be enjoyed by rural communities . Mo
st Indonesians are rural residents who inhabit most of their land and water. There are more th
an 60% of Indonesia people live in villages (Hehamahua, 2015).
The government pays more attention to improve economic development and empow
ering rural communities. The government makes an interesting policy to improve economic
development and empower rural communities, namely that each village is given funds for dev
elopment and empowerment of rural communities. Each village has a share of village funds i
n accordance with procedures and criteria determined by the government. The village fund c
omes from the regional government balancing fund in the implementation of development. E
conomic development and empowerment of rural community is the implementation of Law n
o. 6 of 2014, concerning the village, with the expectation that the village can develop its terri
tory according to its capabilities and can prosper the community through the government
program (Jumiati & Adam, 2020). The government program is to realize better public servic
es, reduce poverty, advance the village economy, overcome inequality and empower villages
as a decentralized government at the lower level.

Mekarbuana Village is a village located at Tegalwaru District, Karawang Regency,

West Java Province. Mekarbuana village is visited by many people from Karawang and outsi
de Karawang as a tourist destination. This village has beautiful views and it makes the visito
rs feel homy and comfortable. The background of Mount Sanggabuana provides a beautiful v
iew around it. There are some waterfalls in a tourist destination for the Karawang people an
d its surroundings. The tourism potential in Mekarbuana Village, among others; Cigeuntis wa
terfall, Bandung waterfall, Tourist Village, Mount Sanggabuana Empang Sari and Cinta bridg
e. This tourism potential has led Mekarbuana Village to be a pilot village as an EMAS (Entr
epreneur, Independent, Fair and Prosperous) Village.
With the establishment of an EMAS Village, it is expected that Mekarbuana Village
can improve the welfare level of its people and with increased community empowerment as
well. This expectation requires hard efforts to develop the potential of the village as a tourist
village. Village funds as a tool used for potential development are a good result for increasing
community empowerment and welfare. The authority is given to the village to regulate villag
e government that aims to improve economic development and community empowerment. In
carrying out the authority, it requires certainty of sources of income, one of which is the cert
ainty of financial income from the Allocation of Village Fund (Harahap, 2021).
Some of the reasons that the village needs a source of income is because : 1). Village
s have a Village Revenue and Expenditure Budget (APBDes) that are smaller in number and
depend on assistance. 2). The welfare of rural communities is low and it will be difficult for v
illages to have high Village Original Income (PADes). 3). Low village operational funds to ru
n public services. 4). Many village programs are carried out by the relevant agencies.

From the above problems, it becomes a reference for local governments to allocate fin
ances for villages. The allocation of Village Funds is expected to be a solution for existing
problems. Government Regulation No. 72 of 2005 states that the central and regional balance
funds received by districts/cities in the distribution for each village are distributed proportion
ally for the welfare and empowerment of the community in the village. (Putra et al., 2018).
Many studies related to the influence of Allocation of Village Fund (ADD) on
community welfare and community empowerment have been carried out, but the results were
still inconsistent with each other. The research (Harahap, 2021; Pitono & Kartiwi, 2021; Rus
ydi, 2012) concluded that the effect of village fund allocation on community welfare had a po
sitive effect. While the results of the study (Wibowo et al., 2019) produced the opposite resea
rch results. Likewise, research on the allocation of village funds to community empowerment
according to (Ardiansyah et al., 2022; Fathony et al., 2019; Kede, 2019)showed that the allo
cation of village funds had a positive influence. On the other hand, the research (Karimah et a
l., 2005; Satriadi et al., 2020; Setyawati et al., 2022) showed that the allocation of village fun
ds did not affect the empowerment of rural communities.

LITERATURE REVIEW
Public Welfare
According to Todaro & Smith (2006), Welfare is the result of community
development in achieving a better life in all aspects of life that includes capacity building
and equitable distribution of basic needs, as well as a better scope of social life. Likewise,
according to Pitono & Kartiw (2021) , welfare is the distribution and organization of social
activities in the form of services for all society elements. Soetomo (2014) reveals that
welfare is a condition with the elements of order-security, justice, peace, prosperity and a
well-ordered life.
The concept of welfare according to the Indonesian Central Bureau of Statistics (202
1) is the equivalent of human dignity with the indicators that become an important measure; f
amily income level, household expenditure composition, family education level, and housing
conditions and facilities in the household.
Welfare indicators as the instruments in this research include;
1. To increase participation in public education.
2. Easy access to public health.
3. Easy access to electricity and water for the livelihood of rural communities.
4. Have a sense of security in social life.
5. Get access to information easily.
6. A good economic system in the village.

Community Empowerment
The organization of communal life develops in an evolutionary way depending on the
social growth of society. It does not create on its own, but rather follows the structure of
human cognition that develops for autonomous existence. According to Wats et al (2019)
empowerment is defined as another party's work towards a community in order for it to
flourish freely. According to Fathony et al. (2019), empowerment is an endeavor to modify
the level of management in order to create an atmosphere in which individuals may use their
strengths to achieve goals.
Empowerment is required to establish and achieve capability and independence in co
mmunity, country, and state life. Empowerment becomes a tool or technique in the developm
ent process for raising the dignity and welfare of the community. According to the various
definitions and objectives of empowerment mentioned above, empowerment is an effort to
improve human welfare with the efforts that must be made in relation to human development,
business development, environmental development, and institutional development in the
social order..

Allocation of Village Funds

Law No. 6 of 2014 governs the government's fiscal decentralization program, allowin
g communities to manage their own financial power and select their own future with oversigh
t from local, regional, and federal administrations. Local fiscal decentralization refers to the a
llocation of village money derived from balanced payments received by district/city administr
ations. In other words, the demand for village administration is satisfied by allocating village
funds (ADD) from the district/city APBD.
Village Fund Allocations are defined in Government Regulation No. 72 of 2005 as the
balance funds received by districts/cities in their distribution to each village and allocated
equitably (ADD). The goal of allocating village funds in Ardiansyah (2022) is to strengthen
village government administration, develop the capacity of village community organizations,
promote income distribution and job possibilities, and encourage improved community
collaboration. While its execution must be guided by three principles: openness,
accountability, and participation.

Hypothesis
 The hypothesis built in the study is based on an independent variable, namely the allo
cation of village funds (ADD) and two dependent variables, including the variable of commu
nity welfare and community empowerment.

H1 : The allocation of village funds partially affects the welfare of the community.
H2 : The allocation of village funds partially affects community empowerment.
H3 : The allocation of village funds simultaneously affects the welfare of the community and
community empowerment.
RESEARCH METHODOLOGY

This study used quantitative methods. The research was conducted in Mekarbuana
Village, Tegal Waru District, Karawang Regency, West Java. The population in this study
were residents of Mekarbuana Village as many as 5,764 people. The sampling technique use
d the Stratified Random Sampling method. This method is to determine the sample by taking
into account the level in the population (Sugiyono, 2014). The criteria for selecting the
sample in this study among others ; 1). People who have lived in Mekarbuana Village for 10
years. 2). People who are over 20 years old. Determination of the number of samples using
the Slovin formula, as follows:

N (1)
s=
N ( ⅇ )2 +1
Description :
S = Total sample
N = Total population
e = Error level (10%)

5.764
S= 2
5.764 ( 0.1 ) +1

5.764
S=
58.64

S=98,29

The calculation results of the sample above were 98 respondents, 29 people who were rounded more
than 98 people. Samples were taken from the village apparatus as many as 49 people and the ordinary
people of Mekarbuana Village as many as 49 people. The study used primary data taken from respond
ents by conducting observations, interviews and giving questionnaires. It was conducted in two week
s.
This research method used multivariate analysis or MANOVA. This method is used to
determine the partial effect of village fund allocation (X) on community welfare (Y1) and on
community empowerment (Y2). The use of this multivariate analysis also is to determine the
simultaneous effect of village fund allocation (X) on community welfare (Y1) and community
empowerment (Y2).
The procedure used in this analysis was the multivariate general linear model, namely testing
the dependent variable with more than one or covariance.
There are several variance-covariance tests used in this study among others :

1. To find out the variables of community welfare (Y1) and community empowerment (Y2) that h
ave the same matrix compared to each other. The researcher used Box's M Test.
 2. To determine the homogeneity of the dependent variables, namely community welfare (Y1) an
d community empowerment (Y2).
3.To know partially; 1) the effect of village fund allocation (X) on community welfare (Y1); 2). T
he effect of village fund allocation (X) on community empowerment (Y2). Researchers used the T
est of Between-Subject Effects.
4.To find out simultaneously; the effect of village fund allocation (X) on community welfare (Y1)
and community empowerment (Y2). The researcher used the Post Hoc Range Test and Multiple C
omparison (Multiple Comparison).

RESULTS AND DISCUSSION

Validity Instrument and Reliability Test

The data quality test used in this study was the validity test and the reliability test. Th
e results of the validity test showed that all instruments in this study were valid, because rco
unt was greater than rTable of 0.202. The reliability test showed all instrument variables wit
h Cronbach's Alpha numbers > 0.600, so it can be said that all instruments in this study were
reliable.
Table 1.
Realibility Test
Variable Cronbach’s Alpha
X 0.768
Y1 0.674
Y2 0.722

Table 2.
Validity Test
Variable R-count value
X1 0.435
X2 0.320
X3 0.353
X4 0.271
X5 0.507
X6 0.544
X7 0.666
X8 0.404
X9 0.415
X10 0.422
Y1_1 0.343
Y1_2 0.412
Y1_3 0.516
Y1_4 0.337
Y1_5 0.429
Y2_1 0.416
Y2_2 0.380
Y2_3 0.525
Y2_4 0.344

Multivariate Normality Assumption Test

Multivariate analysis must be analyzed with data populations that are normally distributed an
d the data have same variance-covariance matrix between populations (Johnson & Wichern,
2007).
 Table 3.
Correlations
chi_square Mahalanobis D
istance
Pearson Correlation 1 .996**
chi_square Sig. (2-tailed) .000
N 98 98
Pearson Correlation .996
**
1
Mahalanobis Distance Sig. (2-tailed) .000
N 98 98
**. Correlation is significant at the 0.01 level (2-tailed).

Matrix Homogeneity Test

MANOVA requires that the variance/covariance matrix of the dependent variable is t
he same. The homogeneity test of the variance/covariance matrix is seen from the results of t
he Box test. If the Box M price is significant, the null hypothesis that states the variance/co
variance matrix of the same dependent variable was rejected. In this condition, the MANOV
A analysis cannot be continued. The results of the Box's M test in this study with SPSS can
be seen in the following chart.

Table 4.
Box’s M
Box's M 29.558

F 1.212

df1 21

df2 1367.051

Sig. .231

Sig Box's M value was 0.231, as in the table above, that was greater than Alpha 0.05,
so the null hypothesis was accepted. It means that the variance/covariance matrix of the depe
ndent variable was s the same, so the MANOVA analysis can be continued.

Levene Test Between X Against Y1 and Y2

Levene's test results showed that for Y1 the price was F=1.714 with a significance of
0.098 and for Y2 the price was F=1.372 with a significance of 0.213. If a significance level o
f 0.05 was set, then both Y1 and Y2 the F price was not significant because the significance
of both was greater than 0.05. It means that both Y1 and Y2 had homogeneous variances, s
o MANOVA can be continued.
Table 5.
Levene's Test of Equality of Error Variancesa
F df1 df2 Sig.
 Well_Being 1.714 9 88 .098
Empowerment 1.372 9 88 .213
Tests the null hypothesis that the error variance of the dep
endent variable is equal across groups.
a. Design: Intercept + Village Fund

Multivariate Significance Test

Table 6.
Multivariate Testsa
Effect Value F Hypothesis df Error df Sig. Partial Eta Squ
ared
Pillai's Trace .994 7742.959b 2.000 87.000 .000 .994
Wilks' Lambda .006 7742.959 b
2.000 87.000 .000 .994
Intercept
Hotelling's Trace 177.999 7742.959 b
2.000 87.000 .000 .994
Roy's Largest Root 177.999 7742.959 b
2.000 87.000 .000 .994
Pillai's Trace .168 .894 18.000 176.000 .587 .084
Village Wilks' Lambda .839 .885 b
18.000 174.000 .597 .084
Fund Hotelling's Trace .184 .877 18.000 172.000 .607 .084
Roy's Largest Root .111 1.085c 9.000 88.000 .382 .100
a. Design: Intercept + Village Fund
b. Exact statistic
c. The statistic is an upper bound on F that yields a lower bound on the significance level.

The results of the analysis from the table above showed that the F value for Pillae Trace, Wil
k Lambda, Hotelling Trace, Roy's Largest Root had a significance greater than 0.05. It mean
s that the probability value of the four variable was not significant. So, the results above sho
wed that there as was no significant effect of the independent variable on all dependent varia
bles simultaneously.

Test of Between-Subject Effects

The F test above showed that there was no significant effect, there was no need for
a partial test, just to make sure that the study resulted a different model from the others, by
creating a conclusion in partial effect.

Table 7.
Tests of Between-Subjects Effects
Source Dependent Variabl Type III Sum df Mean Squar F Sig. Partial Eta Sq
e of Squares e uared
Corrected Mod Well-Being 17.003a
9 1.889 .796 .620 .075
el Empowerment 13.384b 9 1.487 .997 .449 .093
 Well-Being 18649.687 1 18649.687 7861.456 .000 .989
Intercept
Empowerment 11555.082 1 11555.082 7743.896 .000 .989
Well-Being 17.003 9 1.889 .796 .620 .075
Village Fund
Empowerment 13.384 9 1.487 .997 .449 .093
Well-Being 208.762 88 2.372
Error
Empowerment 131.310 88 1.492
Well-Being 43907.000 98
Total
Empowerment 27858.000 98
Well-Being 225.765 97
Corrected Total
Empowerment 144.694 97
a. R Squared = .075 (Adjusted R Squared = -.019)
b. R Squared = .093 (Adjusted R Squared = .000)

The table above showed the significance values were greater than 0.05, namely 0.62
0 and 0.449, so it can be concluded that the answers to the hypothesis as follows:

1. The allocation of village funds had no significant effect on the community welfare wi
th a probability value of 0.620 > 0.05.
2. The Allocation of village funds had no significant effect on community empowerment,
with a probability value of 0.449 > 0.05.

Discussion
The Effect of Village Fund Allocation on Community Welfare
The results showed that the allocation of village funds did not affect the community
welfare. This result was possible, if it was adjusted to the actual situation in Mekarbuana Vil
lage. The allocation of village funds aimed to improve the welfare of the community in the vi
llage. The government is obliged to monitor the allocation of village funds, so that the allocat
ion of village funds is in accordance with the mechanism and on target. The supervision of v
illage fund allocations development needs to be carried out in various ways. Regular meeting
s to discuss the implementation of village funds, group meetings (farmers, traders and ordinar
y residents), field visits, group studies related to the problems encountered, comparative studi
es to other villages related to the implementation, administration and socialization of village f
unds.

The community that does not concern with the allocation of village funds may cause
this variable does not affect the level of welfare. It is not considered that the level of commu
nity welfare is low but t the community does not expect from village funds for their livelihoo
ds. The community has been at a certain level, during the beginning of village funds
allocation.

The Effect of Village Fund Allocation on Community Empowerment

The results of this study showed that in the community, with or without the village f
und program was still a community with the current level of community empowerment. The
community was able to carry out their economic activities and their economic resilience, it
is due to the higher growth of tourists from Mekarbuana village. Community independence i
s able to result the community empowerment without encouragement the village funds. The
independence of the community is supported by the concern of the community outside the M
ekarbuana village to make it a tourist village in Karawang. It can be seen that many people o
utside the village of Mekarbuana have invested their funds in building the Tourist Village and
Empang Sari.

CONCLUSION

The allocation of village funds is not a solution to improve community welfare as

proved by the results of this study. The lack of supervision of the implementation of the Villa
ge Fund Allocation with the independence of the Mekarbuana Village community resulted in
the absence of relevance of the village fund allocation with the community welfare.
In the continous community empowerment , there is no relevance of village funds a
llocation so that the allocation of village funds does not affect the high and low empowermen
t of Mekarbuana Village, Tegalwaru District, Karawang Regency. It can be concluded that th
e allocation of village funds has no effect on community welfare and community empowerme
nt.

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