Supervision Contributes for Success of Megawon Village Fund Program Jati District Kudus Regency Central Java Indonesia by Using Good Governanceas a Contingency Variable

Amin kuncoro, Grahita Candrarin, Sudarman .,
Article Date Published : 14 September 2018 | Page No.: 4974-4977 | Google Scholar


This research aims to analyze supervision which is able to contribute to improve clean government by using good governance as a moderator. Sample from this research is village’s administrators who are involved with village fund and village supervisory administrator in total 26 persons. Sample retrieval technique uses Multiple Regresion Analysis. The result from this research explains that good governance can be contingency variable. Thus, to create clean government and authoritative; it needs maximum supervision and to be succeed village fund program.

Background of the Study

Clean government needs consistency from all lines as a consideration to achieve success in central government programs until local government and village government. Village government as a lowest government, evidently is susceptible with invalid. However, an effort to create clean governmnet needs cooperation from all organization lines. UNDP ( 1997 ) explains that consensus which must be achieved by government, society and citizen, and private sector, in this case is as a government organizer in a country.

In accordance with idea and implementation of good central government management or local government, it needed many steps. They are such as government accountability, improvement of public, and improvement of public welfare. Then, government often issuing regulations that has partiality and try to give evidence as an effort of accountability’s manifestation. This step often involves fund management which is basically implemented through alteration of budgeting system from traditionalbudgeting systemto performance budgeting system.

Village’s role is very important because population in Indonesia is largely centered in the village. Village is a unity of law society which has original arrangement based on privileges of origin (Widjaya,2004:3) . Average of population is in village especially outside Java island because many area is still belong to traditional village. Furthermore, its societystill depends on nature such as plant or gardening. Society’s frame in village is more aprrehensiveday to day because it is vanished with bureaucracy from central which is not yet leads to partiality. It makessociety in village hard to maintain their existence as a cultural holder of traditional society. This case is often raised to public. Nonetheless, it is still identical with backwardness; so there is not yet a proper solution from government to improve their live

( ).

development until now should be a main priority to boost resources and focus on enhancement from many sides in all country. If referring toUndang-Undang Nomor 6 tahun 2014 about Village whichgives more discretion to village to manage its authority, so every village has a full right to manage their fund’s circulation. Authority intended is given authority to village in local scale for develop resources by using village fund.

With the existence of village law, so village is viewed as a thing which has great opportunity to give contribution to society. Its contribution is making village more advance because every village has same opportunity in developing their area by fund from central government. If it happens abuse of village fund, so there will not be an advancement of that village. Therefore, it needs intensivesupervision for village fund. The purpose is to guard village development, so every village can give expectation to their society.

Megawon Village is one of villages in Kudus Regency which has limited resource structure with the smallest area. Megawon Village area is 143,05 hectare. It consists of 66.91 hectare rice field area, 48.03 field area and 28.11hectare public facilities (Megawon Village’s government, 2017). Limited Village area needs active role from leader to maximize village’s potential. However, many years ago before Undang-undang Nomor 6 tahun 2014 applied, Megawon village government is often experience lack of resources such as productive resources.

Appearance of Undang – undang about authority of village government has provided easebecause village can manage resources especially manage village fund freely. However with limited of human resources, village goverment can make and maximize village fund in order to avoid errors.

Supervision done maximally will create good governance, clean, and authoritative. However, it is not easy to achieve it. It is because support from all lines in village goverment is not yet maximum. It needs to do many training programs and maximize human resources which is insightful to develop the village. Problems faced is ‘how can village maximize supervision to village fund, so it can be achieved clean governance and authoritative?’. Thus, initial goal of village government can be achieved fast and appropriately.

Review of Related Literature and Research Hypothesis


Controlling is the process of measuring performance and taking action to ensure desired results(Schermerhorn, 2002: 12). Supervision gives more nuance on performance’s measurement and decision-making in deciding action that can support achievement of the results. Besides, supervision is a part of management function which is an examination’s form or control from top sides to lower side. Supervision does the process to achieve what has been planned before. The process of ensuring that actual activities conform the planned activities. (Stoner, Freeman & Gilbert, 2005: 114).

A work can be finished well and correctly if it done with responsibility. Because a work is obtained from leader, so leader must have ability to guide, connect to network, motivate, control organization as a good supervision source appropriate with stipulation, time, and planning (Kartono, 2002:81 ). Siagian also explains that supervision is very important steps to management. It is because it can realize company’s plan through the leader.

Winardi (1998:78) explains that supervision is a systematic effort to set performance with standart on planning design system in maximum feedback information, to compare actual performance with standart set. Achievement of supervision program needs strictly explanation, so every supervision act has a basic and strong structure to achieve good performance and responsible.

Supervision’s form which is often arise is direct supervision. It is because background of this country is better if it done direct supervision. If it is not done good supervision and consistently, so kind of work achievement will be less maximum.

Basically, supervision done to avoid errors, misappropriation, and irregularitiesin order to help implementation of policy effectively and efficiently. Morever, supervision identified with continuous cotrol to achieve the goal, so the existence of supervision can change views from organization lines in a short time.

Success of the Program

Program is a long-term plan which is implemented to achieve a goal. Program which becomes a main requirement to success many plans is a program got an updating from many parts in organization. However, it needs accuracy to create a program; so it will not be out of goal. By program, all kinds of plan will be organized and more easy to be operated (Jones, 1994:296).

Success’ element of a program needs program’s implementation which is accepted by group or individual. Hence, everyone feels involved with benefits of program set. The implementation of program is very important in accounting for processing and supervision, because organization needs a decent program(Jones, 1994: 298).

Hence, it can be said that program is a main element should be achieved because implementation activity has program which is contains various aspects. Those aspects are goal will be achieved, benefits of a program, policy or rules of budgeting estimates and strategy used.

H1: if supervision is improved, so it will achieved the success of fund village program.

Good Governance

Good governance is a management process to build good thing, responsible, and has synergy with democracy principle, efficient market, and avoid wrong allocation of investment. Besides, the pattern used can prevent political and administrative corruption.

Good governance essentially is a process to achieve good and responsible decision, do the same on government consensus, private and government’s organizer from highest level to lowest level, that is village.

Good governance has a very critical definition. To achieve it, it needs long consentration. In Indonesia, actually Good Governance has been implemented appropriately since the reformation. Application of good governance has been helped achievement of clean governance and reduce fraudulence.

The success of fund village program basically is a commitment from central government to develop area especially with village’s structure in all Indonesia. Besides, village fund program is more focus on management, develop potency and develop resources in the village. If village fund is managed well and correctly, a village will be more advance with various potencies. To achieve that program, it needs direct and indirect supervision. The purpose is to avoid missapropriation because that village fund is for public interst or common interest.

H2: If supervision is better, so the success of program is achieved with good governanceas acontingency’s contribution.

Previous Research

Bahtiar, 2017 explains in his research that ADD program is used to build infrastructure which its supervision done in three stage so it will not happen an abuse. Fahri, 2017 gives explanation that the existence of village fund has been given contribution to effective village financial management . So do Tangkumahat et al (2017). He concludes that the existence of village fund provides enough contribution to society.

Concept of Thinking

The success of management program of village fund due to cooperation between village government and organization in village. However, if supporting elements is unable to work maximally, it will be happen a misappropriation. Thus, to achieve clean governance and authoritative; it needs good and professional supervision.

Figure 1 many previous researchs

Source: many previous researchs

Research Method

This research is a field research which data used is primary data. It means that a data got directly from answer result of chosen respondent. This research uses quantitative descriptive research.

Data presentation uses instrument test. It is test used by researcher to test validity level of questions or research instrument. It also uses reliability test, so when questionnaire is valid and reliable, it will be continued by researcher with analyzing data by MRA test ( Moderating Regresion Analysis ). The purpose is to find out whether ...

Population and Sample

Population and sample from this research is all village organization and village supervisor in total 26 persons. Sample retrieval technique uses sensus sample because total population is less than 30 persons, so all population used as sample.

Operational Definition

Supervision is a process to ensure that activity which is implemented has been appropriate with the plan ( Stoner, Freeman & Gilbert, 2005: 114). Supervision is measured by five research instrument.

Program is a way which has been ratified or agreed through various things, sothe plan will be organized easily. With the existence of program, plan with stipulation of time will be achieved ( Jones, 1994 ). Program is measured by seven research instrument.

Good governance is concept of goverment management which is clean and authoritative. While good governance is measured by four instrument.

Results and Discussion

MRA ( Multiple Regression Analysis )

After done instrument test and get valid and reliable result, researcher continued with moderating test by using SPSS software 17.0 for windows with Moderating Regresion Analysis .

Y = + 1.436 X+ 1.870 (X.Y)

Based on calculation above, it can be explained as follows.

Constant is positive (72.021). It shows that if there is no supervision variable, there is still a village fund program. Therefore, it can be explained that village fund program is still exist although it is not affected by supervision.

Regression coefficient value for X variable is 1.436. This means that every increase of one unit, (Y) variable will be rise 1.436. It is with assumption that another free variable from regression model is steady.

Coefficient regression value is 1.870. It means that if good governance (moderator) is constant, the increase of supervision (X) causing increase of village program (Y) in the amount of 1.870.

To find out influence partially between independent variable toward dependent variable, it is used t test. If t count> t table, independent variable partially has influence toward dependent variable. However, if t count< t table, independent variable partially does not have influence toward dependent variable.

Hypothesis 1 : There is a positive influence and significant between supervision and village fund program.

T count of supervision variable is 2.300 where t count is bigger that t table (2.300 > 1.683). Hence, examination shows that Ho.1 is rejected and hypothesis ( Ha.1 ) is accepted. This result shows that supervision variable takes effect positivelyand significant toward village fund program. This means that Hypothesis 1 is supported.

Hypothesis 2 : There is a positive influence and significant between moderating variable good governancewith village fund program.

T count of Good governance variable is 2.492 where t count is bigger than t table (2.492 > 1.683). Hence, examination shows that Ho.2 is rejected and hypothesis ( Ha.2 ) is accepted. This results shows that good governance variable takes effect positively and significant toward village fund program. This means that hypothesis 2 is supported.


Supervision takes effect to village fund program because support from many elements in society. Empirical proof is explained that if supervision better, it will be able to success central government program. It is village fund management program.

Village fund management program becomes a policy from central government that has been accepted by society throughout Indonesia. It is especially in areawhich has not maximized the resources.

Consistent with the research result of Bahtiar, 2017 and Fahri, 2017. They explains that the existence of village fund is able to give spirit to advance the nation of Indonesia. It is because some government are centered in regions, so by the existence of village fund program can improve advance of villages in Indonesia.

Achivement of village fund program which given advance to village can be expressed as a good supervision.

Good governance provides contribution to improve advance in a village because it needs mutualconsequencesto achieve clean government. It makes, supervision run well to success village fund program.


Maximizing supervision will be able to achieve clean and authoritative government. Moreover, it can achieve village fund program.

Good governance is able to contribute in successing of village fund program.

Theory Implication

Program is a long-term plan or short-term which has been set through long discussion to decide. Good governance is a method to achieve clean and authoritative government.

Managerial Implication

Implementation of program from central government is to make all elements in village responsible for successing village fund program. Clean and authoritative government is an expectation of all society.


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Article Details

Issue: Vol 5 No 9 (2018)
Page No.: 4974-4977
Section: Articles


kuncoro, A., Candrarin, G., & ., S. (2018). Supervision Contributes for Success of Megawon Village Fund Program Jati District Kudus Regency Central Java Indonesia by Using Good Governanceas a Contingency Variable. The International Journal of Social Sciences and Humanities Invention, 5(9), 4974-4977.

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