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"ABSTRACTVillage is relatively small entity occupied by homogeneous people and tied by local norms andcustom as well. In Indonesia, village has autonomus authority to manage and to govern dailyactivities since Government of Indonesia issued Indonesian Act Number 6/2014 about Village.The law mentions that village can get, search, and spend its village budget to accelerate villagedevelopment. In practice, use of village budget is questionable due to complex issues in field.One of important things in allocating village budget is aimed to accelerate villagedevelopment. Therefore, innovation is substantial to develop village sustainably, it comprisesa newness of product or process or organization or marketing. Therein, village budget isimportant to develop fresh ideas to innovation in one or more of innovation types mentionedabove. Whereas, innovation is an invention and its commersialisation to market, by which itis promoted by social-economic interest. In Indonesia, local innovation is promoted by Law ofGovernment Number 38/2017 about Local Innovation where village is part of localgovernment. This study is a descriptive-qualitative research method using secondary data. Theanalysis is content analysis technique with focusing on substance of local innovation andvillage budget of both laws. Due to this study is literature and act review only, analysis isdeveloped through innovation policy framework. And the significant result is that both lawsare appropriate to accelerate village development in Indonesia based on innovation,eventhough capacity of human resource and administrative management at villagegovernment level are necessarily considered."

"Regional autonomy demands a creative and innovative local government. This paper sees the creativity of local government in preparing the roadmap. Basically, the readiness of local government in preparing SIDa roadmap is the overall condition of local government to understand the potential of the area in determining thematic roadmap. Some things that should be prepared by the local government is to prepare the regulation and mapping of SIDa personnel. Through this study, it comprehensively describes the stages that must be taken into account by the stakeholders in the region. The method used the explorative descriptive method. The results of the study are identified (1) Local Government readiness in preparing the SIDa roadmap by preparing the legal basis, coordinating with R & D institutions, integrating provincial and district/city programs, and preparing SIDa documents, (2) Elements prepared by the Provincial Government: Establishing TEAM Coordination Province, Identification of potency of local superior commodity, human resource identification, feasibility test, and identification of innovation of regency / city, (3) obstacles encountered in preparing SIDa roadmap are: still strong sectoral ego coordination team of province especially university and low commitment of local government Districts/municipalities in the implementation of innovation, the absence of SIDa actors in the implementation level of private sector/business world, budget allocation for innovation at various SKPD, and implementation of coordination team not yet run properly."