<![CDATA[Corruption of village funds is a serious threat to village development and community welfare. The politics of criminal law plays a strategic role in formulating law enforcement policies that do not only emphasize the punishment of perpetrators, but also prioritize the recovery of state financial losses. This study aims to examine the direction and form of ideal criminal law politics in handling cases of corruption of village funds, as well as to identify obstacles in its application. The method used is normative legal research with statutory, conceptual, and comparative approaches. The results show that criminal law policy in Indonesia is still oriented towards a repressive approach and has not given priority to the mechanism of state asset recovery. The main obstacles include weak coordination between law enforcement agencies, overlapping regulations, the lack of capacity of village officials and law enforcers, and the suboptimal application of restorative approaches and asset recovery. In addition, the punishment system that has not harmonized the deterrent effect and the recovery of state finances exacerbates the inefficiency of law enforcement. The conclusion of this research confirms the importance of reformulating the politics of criminal law based on the principles of substantive justice and legal expediency, through regulatory harmonization, strengthening institutional capacity, and integrating restorative approaches to encourage the effectiveness of state financial recovery due to corruption in the village.]]>
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