PREVENTING VILLAGE FUND FRAUD THROUGH LOCAL WISDOM AND CULTURAL VALUES: A SYSTEMATIC REVIEW OF PREVENTIVE EFFORTS IN INDONESIA

Abstract

The management of village funds in Indonesia is vulnerable to fraudulent practices that compromise the integrity and effectiveness of rural development. Fraud prevention is therefore crucial to ensure transparency and accountability in fund utilization. This study aims to identify strategic efforts to prevent fraud, particularly through the integration of local wisdom and cultural values. Employing a systematic literature review method, the research analyzed 30 peer-reviewed journal articles focusing on village fund fraud prevention in Indonesia. The findings reveal several effective strategies, including strengthening ethical and cultural values, raising community awareness, applying principles of transparency and accountability, fostering collaboration among stakeholders, and embracing cultural diversity. These approaches emphasize the importance of integrating indigenous wisdom into monitoring systems that rely not only on formal legal mechanisms but also on social and cultural norms. The study concludes that fraud prevention rooted in Indonesian cultural values can be more effective and sustainable. Its main contribution lies in offering a conceptual foundation for public policy development and community empowerment programs that are context-specific, participatory, and culturally grounded, thereby reinforcing integrity-based village fund governance.