<![CDATA[This study aims to analyze the dynamics of the Multiplier Effect in rural development in Indonesia by examining how cascading economic impacts emerge and are sustained at the village level. Employing a qualitative–descriptive approach, the research explores the institutional, social, and economic interactions that shape the distribution and sustainability of the Multiplier Effect. Data were collected through direct observations and an analysis of official documents, including village budgets and development planning reports. The findings indicate that the Multiplier Effect does not arise automatically from physical development activities but is generated through strategic management of local economic circulation, the strengthening of social capital, and effective village governance. The study further reveals that villages capable of directing development spending toward local procurement, human resource empowerment, and institutional capacity-building tend to produce a more sustainable Multiplier Effect. Conversely, economic leakages, weak governance, and limited community participation serve as major obstacles to long-term sustainability. The study concludes that reinforcing the Multiplier Effect requires integrated strategies encompassing local procurement policies, capacity enhancement, institutional strengthening, and regulatory support. Such efforts are essential to ensure that rural development contributes meaningfully to local economic resilience and the equitable distribution of national welfare.]]>
