Indonesia Conference Directory

Village funds management that is mandated in Law No. 6 of 2014 of Villages aimed to the development and empowerment of village people is still not optimal. This research purpose is to identify and analyze several factors that cause not optimal management of village funds. The method used is Bartlett test analysis factor, Kaiser-Mayer-Olkin (KMO), Measures of Sampling Adequacy (MSA), factor extraction using Principal Component Analysis (PCA), factor selection using Eigen values and Plot Cree, and factor rotation using Orthogonal Rotation Varimax. The data was collected through two stages, the first stage is in-depth interviews with key persons, and the second stage is distributing questionnaires to 105 respondents. The results showed that from 20 factors obtained from stage 1 with the factorization of the results of questionnaires in stage 2, there were 4 new factors of reduction result that caused low management of village funds. These factors include coordination, management, resource, and policy.