Systematic Literature Review: Impact of The West Java Provincial Government's Competitive Financial Assistance Policy on Infrastructure Development and Village Services

Abstract

This paper will use a systematic literature review to discuss the following issue: how does the competitive financial aid policy of the West Java Provincial Government affect the construction and services in villages? Articles were screened according to the PRISMA 2020 protocol. A total of 10 articles published between 2021 and 2025 from Scopus proved relevant to this issue infrastructure modernization of villages with the competitive funds. They showed that the competitive mechanisms have essentially led to the infrastructure of physical life in villages, whether it be roads, bridges or water-saving facilities plus so onUsing digital technology to modernize village governance has also transformed the local government landscape, from citizen services quite generally oriented to much more individualized things like personal medical consultation at home. Using data from 123,01 sample households, it was found that the driving force for rural village services modernization is not access to good main roads or arrival of electricity, but its own technology-driven change and new choices opened up by alien systems of accounting. Key success factors in recent years have been the mediation role of local fiscal capacity (PADes), as well as a favorable technological development environment and human capital. To reiterate, while there are obstacles related to sustainability and much less pilgrim-friendly village conditions, these competitive policies are bringing forth new ways of village innovation. Indonesia needs to learn from these insights the importance of improving its financial assistance policies for villages.