Underfunded Potential: Financial Challenges of LPHD Dariaga Mudae amid Strong Village Growth

DOI

10.2991/978-94-6463-938-4_22How to use a DOI?

Keywords

Accountability; Community Forestry; Financial Reporting; LPHD; Stakeholder Funding

Abstract

This study explores the financial readiness of Lembaga Pengelola Hutan Desa (LPHD) Dariaga Mudae in Darunu Village, North Minahasa, Indonesia. Although the institution was officially established in 2023 and operates in a village with significant socio-environmental potential, it has been unable to secure consistent stakeholder funding. The core issue identified is the absence of basic financial reporting systems, including bookkeeping, budget planning, and transparency mechanisms. Using a qualitative descriptive approach, data were collected through in-depth interviews, field observations, and document analysis. The findings indicate that the LPHD lacks personnel with financial expertise, has no formal financial documentation procedures, and has never submitted reports to relevant government agencies or donors. As a result, the institution remains isolated from broader funding opportunities, despite being embedded in a highly active and well-structured village environment. The study highlights the institutional disparity between LPHD and other local bodies such as BUMDes and tourism groups, which have successfully accessed financial support. It concludes that building the financial capacity of community-based forest institutions is crucial to unlock their full potential and connect them to global sustainability initiatives. The research also calls for further studies on scalable financial training models for newly formed LPHDs across Indonesia to enhance transparency, accountability, and long-term viability.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Jerry Sonny Lintong
AU  - Ivoletti Merlina Walukow
AU  - Dominikus Andreo Maryadi
PY  - 2025
DA  - 2025/12/31
TI  - Underfunded Potential: Financial Challenges of LPHD Dariaga Mudae amid Strong Village Growth
BT  - Proceedings of the International Conference on Applied Science and Technology on Social Science 2025 (iCAST-SS 2025
PB  - Atlantis Press
SP  - 182
EP  - 188
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-938-4_22
DO  - 10.2991/978-94-6463-938-4_22
ID  - Lintong2025
ER  -