Abstract. Poverty is a fairly complex problem that is faced by the government nationally, so there are many variations of the solution needed. Central Java Province, despite experiencing a decrease in the number of poor people, but still ranks second as a province with a poverty level in Java. This study aims to analyze the Effect of Village Funds on decreasing the percentage of poor people in Central Java Province in 2016-2018. The data used is panel data with time series composition between 2016 - 2018 and cross section in 29 districts in Central Java Province.Based on the results of research and data analysis using Random Effect Model shows that: (1) Village Funds for the Implementation of Village Development have a negative and significant effect on the reduction in the percentage of poor people in Central Java Province. (2) Village Funds for Community Empowerment have a positive and significant effect on decreasing the percentage of poor people in Central Java Province.The implication of the above conclusion is to reduce the percentage of poor people, especially in Central Java Province, the government can increase the use of village funds for the field of village development, and the use of village funds for community empowerment should be diverted to other fields, such as transferring development village. Keywords: Poverty, Village Funds, Village Funds for Implementation of Village Development, Village Funds for Community Empowerment.
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