Int. J Sup. Chain. Mgt Vol. 9, No. 2, April 2020 11 Rural Fund Supply Chain Monitoring System: Evidence from Indonesia and Lesson Experiences from South Korea and Malaysia Rochman Marota 1 , Sri Mulyani 2 , Citra Sukmadilaga 3 , Zahra Nur Azizah Kamilah 4 , Muhammad Alam Mauludina 5 1,2,3,4,5 Accounting Program, University of Padjadjaran, West Java, Indonesia 1 rochmanmarota@yahoo.com 2 sri.mulyani@unpad.ac.id 3 citra.sukmadilaga@unpad.ac.id 4 zahra.nak1211@gmail.com 5 alammauludina@gmail.com Abstract— Rural fund in Indonesia, called village fund, developed since 2013. Indonesia Village Law that mentioned about the Village Development is an effort to improve the quality of life and life for the welfare of the village community, as well as Saemaul Undong in South Korea and FELDA (Federal Land Development Authority) in Malaysia. This research doing comparative study between Indonesia, South Korea and Malaysia in term of supply chain monitoring system on village fund. Further explained that the supply chain monitoring system of village fund covers the stages of planning, implementation, and monitoring itself. The purpose of monitoring system is to ensure the implementation of activities in accordance with the plans and budgets that apply to the expected objectives can be achieved. This research contributed on ensuring the supply chain monitoring system would be done based on structural approach that held by village official as well as monitoring by the village community as village stakeholder. Learning from the Saemaul Undong program in South Korea and FELDA in Malaysia, the village officials are the main pillars in the supply chain monitoring system of village funding, from the planning, implementation, and accountability stages as a pillar of good village governance to improve the development of the welfare of the village community. Keywords— rural fund, village development, supply chain, monitoring system, village officials 1. Introduction The Statistics Indonesia recorded the poverty rate by 9.82 % in March 2018 to be the lowest in history [3]. The number of poor people in Indonesia currently amounts to 25.95 million people. The number of poor people in the period of March 2018 was reduced by 633.2 thousand people compared to the condition in September 2017 reaching up to 26.58 million people (10.12%). Referring to the statistics, the poor population in urban areas dropped by 128.2 thousand people, from 10.27 million in September 2017 to 10.14 million people in March 2018. Meanwhile, the population in rural areas decreased by 505 thousand people i.e. from 16.31 million in September 2017 to 15.81 million people in March 2018. Ref [15] quoted a statement from the Director of the Center of Reform on Economics (CORE), Muhammad Faisal, who stated that the decline in the number of poor people in rural areas was faster than that in urban areas. This is influenced by the existence of the government programs, such as village funding, which are considered successful in reducing the number of rural poverties through the work programs. The same argument was conveyed by [12] quoting the statement of the Ministry of Village, Development of Disadvantaged Regions and Transmigration of Republic Indonesia, Eko Putro Sandjojo, stating that the factor causing the decline in poverty profile in the villages and malnutrition issue (stunting) is Village Fund Allocation (VFA). Village funding has succeeded in reducing the poverty rate at the village level by 4.5 percent, although the level of poverty in the village is still high. The process of handling poverty in rural areas is faster than that in urban areas. For the past 3 (three) years, village funds have managed to reduce stunting rate by almost 10 percent, from 37 percent to 27 percent. The Ministry of Village continues to propose to increase the distribution of village funds. In 2015, the village funds were disbursed by Rp 20.76 trillion with an absorption of 82 percent. A year later, it increased to 46.9 trillion with uptake reaching 97 percent. In 2017, the village funds increased to Rp 60 trillion with up to 99 percent uptake. The Minister explained further that the villages began to improvise in their use of funds. The total of the village funds, over the past 3 years, has created 120,000 km of village roads, 1,990 km of bridges, 3,800 landslide prevention, tens of thousands of early childhood education, integrated service post for baby’s health, drainage, and etc. The Minister underlined the key to ______________________________________________________________ International Journal of Supply Chain Management IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print) Copyright © ExcelingTech Pub, UK (http://excelingtech.co.uk/)