Attending NTB Musrenbang, Minister Clarifies Village Fund Cut Issues

Mataram (ANTARA) - The Minister of Villages and Underdeveloped Regions (Mendes PDT), Yandri Susanto, has clarified the issue currently circulating in public discourse regarding the central government’s alleged cuts to Village Fund allocations.

“Village Funds are not being cut or taken by the centre. What is being changed is their management,” stated Mendes PDT Yandri during the West Nusa Tenggara (NTB) Provincial Musrenbang in Mataram on Thursday.

Mendes emphasised that these management changes are directed towards strengthening village economies through the Merah Putih Village Cooperative (Kopdes) programme.

According to Mendes, the benefits of Village Funds will continue to return to the community in the form of more structured economic services via the presence of Kopdes Merah Putih.

He further explained that Kopdes Merah Putih aims to reduce community dependence on moneylenders, middlemen, or high-interest online loans.

All assets of Kopdes Merah Putih, from buildings and warehouses to operational vehicles, will belong to the villages, not the central government.

He urged the public not to be easily swayed by inaccurate information regarding Village Fund allocations, as every policy taken is always oriented towards improving the welfare of rural communities.

This policy is enshrined in Ministerial Regulation on Finance (PMK) Number 7 of 2026, signed by Finance Minister Purbaya Yudhi Sadewa and effective since its promulgation on 12 February 2026.

The overall Village Fund allocation amounts to Rp60.57 trillion. The remaining Village Fund quota, excluding that used to support Kopdes Merah Putih, is allocated as regular quota valued at Rp25.42 trillion.