Airlangga Assures APBN Funding for Red and White Village Cooperatives is Secure

Coordinating Minister for the Economy Airlangga Hartarto has spoken out regarding the financing scheme for the Red and White Village/Urban Ward Cooperatives (KDMP) through the State Revenue and Expenditure Budget (APBN). Menko Airlangga emphasised that KDMP financing already has its own dedicated allocation in the APBN, even as the government implements budget tightening. “Yes, we will monitor it because the financing will have a budget from the APBN,” he told reporters when met at the Coordinating Ministry for the Economy office on Monday (13/4/2025). Airlangga also explained the new regulation under Ministerial Regulation on Finance (PMK) Number 15 of 2026, which amends Article 2 of PMK 49/2025 to facilitate KDMP business activities, allowing state-owned banks to provide financing to KDMP. “Yes, there is certainly a change, as this relates to financing and activities. The most important thing is to encourage activities at the grassroots level,” said Airlangga. Thus, this regulation also alleviates the government’s APBN burden. State-owned banks are permitted to disburse loans to village cooperatives as part of accelerating development. In detail, the government can place funds as a liquidity source for banks to support the physical development of cooperative outlets, including warehousing and operational equipment. Fund disbursement is carried out in stages, considering the state’s financial liquidity conditions. The regulation also sets a maximum financing limit of Rp3 billion per cooperative outlet unit. Meanwhile, the interest rate or financing margin is set at 6% per year for recipients. From CNBC Indonesia’s records, KDMP funding previously came from state fund placements and village fund deductions, focusing on physical outlet development and initial working capital. Under the latest 2026 policy, approximately 58.03% of village funds are allocated for KDMP. The total funding includes Rp200 trillion from Himbara and Rp16 trillion from Surplus More Budget (SAL).