Abstract

This study examines the dilemma of local development under the Village Fund program with a focus on Tanjung Baringin Village, a 3T area in Padang Lawas Regency, North Sumatra. Through a mixed quantitative and qualitative approach, this study analyzes the effectiveness of Village Funds on two main dimensions: physical infrastructure development and community economic empowerment. The results of the survey of 50 respondents show that there is a significant contribution of the Village Fund to the construction of roads, bridges, and transportation facilities that improve village connectivity. However, its impact on strengthening the household economy and the development of BUMDes is still limited. The data shows that only a fraction of the community feels the immediate economic benefits, while public perception is also divided on certain projects, such as the development of waterways. These findings confirm the imbalance between the physical development output seen and the substantive goals of economic resilience and community empowerment. Therefore, the study recommends a policy shift from a physical orientation to a more holistic, participatory, and sustainable approach. By highlighting the case of Tanjung Baringin Village, this study enriches the literature on the implementation of Village Funds in the 3T area and emphasizes the importance of integration between infrastructure development, economic empowerment, and strengthening local institutional capacity.