Jakarta, VIVA \u2013 The government has stipulated that 58.03 per cent of\nthe 2026 Village Fund budget is to be allocated for the infrastructure\ndevelopment of Merah Putih Village Cooperatives (KDMP) throughout\nIndonesia.<\/p>\n
This is set out in Minister of Finance Regulation (PMK) Number 7 of\n2026, signed by Finance Minister Purbaya Yudhi Sadewa and effective from\nits promulgation on 12 February 2026.<\/p>\n
\u201cThe allocation adjustment resulting from government policy to\nsupport KDMP implementation is calculated at 58.03 per cent of the\nVillage Fund ceiling for each village, amounting to Rp34.57 trillion,\u201d\nreads Article 15 paragraph (3) of PMK 7\/2026, as quoted in Jakarta on\nWednesday, 18 February 2026.<\/p>\n
As explained in Article 20 paragraph (3), the use of Village Funds\nfor KDMP implementation support comprises instalment payments for the\nphysical construction of retail outlets, warehousing, and KDMP\nfacilities. The disbursement of Village Funds to support KDMP is\nchannelled directly from the State General Cash Account (RKUN) to the\nfund disbursement holding account.<\/p>\n
The overall Village Fund allocation for the 2026 fiscal year is set\nat Rp60.57 trillion. The remaining Village Fund ceiling, beyond that\nused to support KDMP, is allocated as a regular ceiling valued at Rp25\ntrillion.<\/p>\n
In general, the Village Fund budget is used to support sustainable\ndevelopment in each village. Article 20 paragraph (1) of PMK 7\/2026\ndetails these uses, including addressing extreme poverty through direct\ncash assistance (BLT), strengthening climate-resilient and\ndisaster-resilient villages, and improving the promotion and provision\nof basic health services at the village level.<\/p>\n
Further uses include food security or food reserve programmes,\nenergy, and other village economic institutions, KDMP implementation\nsupport, construction and maintenance of village infrastructure through\nvillage cash-for-work programmes, digital infrastructure and technology\ndevelopment, and other priority sector programmes.<\/p>\n
For the regular Village Fund scheme, disbursement is carried out\nthrough deductions from the Village Fund of each regency\/municipality\nand the transfer of the deducted funds to the Village Cash Account\n(RKD).<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/58-per-cent-of-village-fund-budget-allocated-by-purbaya-for-merah-putih-village-cooperative-development-this-1771506343", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }