324 Economics Development Analysis Journal 8 (4) (2019) Economics Development Analysis Journal http://journal.unnes.ac.id/sju/index.php/edaj Village Fund Transfer and Rural Poverty in Indonesia Muhammad Amir Arham 1 , Boby Rantow Payu 2 Faculty of Economics, Universitas Negeri Gorontalo Article Info ________________ Hisrtory of Article Received July 2019 Accepted September 2019 Pusblished November 2019 ________________ Keywords: Village Fund, Village Development and Poverty __________________ Abstract ________________________________________________________________ For decades, rural areas development tends to be poorly taken into account, leading to increasing urbanization. Since Indonesia owns various urban life sources, yet relatively homogeneous in rural areas, it causes acute poverty. Accordingly, Act Number 6 of 2014 on Village has been stipulated to accelerate the development of rural areas. This study devotes to investigating the extent to which the Village Funds transfer has been effective and influenced rural poverty in Indonesia during the transfer period. By employing econometrics method through panel data equation in 2015 – 2016 within 33 provinces in Indonesia with Fix Effect approach, this study used the secondary data obtained from the Ministry of Finance for Village Funds and from Statistics Indonesia for macroeconomics. The result shows that Village Funds transfer has a significant influence on lowering the poverty rate of rural areas, meaning that a consistent increase of Village Funds is able to reduce the case mentioned earlier. This policy has met the expectation because rural poverty arrives at a high rate over the years. . © 2019 Universitas Negeri Semarang  Corresponding author : Address: : Jl. Jend. Sudirman No.6, Dulalowo Tim., Kota Tengah, Gorontalo 96128 E-mail: mier_archam@yahoo.com ISSN 2252-6560