Implementation of Green Economy Policy in Village Fund Management: Institutional Challenges and Ecotourism Sustainability

Abstract

This study analyzes the implementation of green economy policy through the Village Fund in Damaran Baru Tourism Village, Bener Meriah Regency, and the constraints affecting its implementation. The study employs a descriptive qualitative approach using data obtained through in-depth interviews, non-participant observation, and documentation. The analysis draws on the four policy implementation dimensions proposed by George C. Edwards III: communication, resources, disposition, and bureaucratic structure. The findings show that green economy principles have begun to be implemented through the allocation of approximately 3% of the Village Fund for ecotourism development, the Eco Village, protected-forest tourism, camping grounds, and local economic activities based on natural potential. Implementation, however, remains suboptimal because public communication is predominantly one-way, implementers' technical capacity and digital literacy are limited, commitment has not been fully institutionalized, SOPs have not been standardized, and cross-sectoral coordination remains sporadic. The available evidence is stronger in demonstrating the orientation and process of implementation than in measuring economic and ecological outcomes; changes in income, employment opportunities, waste reduction, resource efficiency, and environmental carrying capacity have not yet been documented quantitatively. The study concludes that strengthening institutional capacity is a critical prerequisite for translating fiscal commitment into sustainable green economy outcomes.