Coordinating Minister Airlangga: Government Continues to Monitor KDMP Financing from State Budget

Coordinating Minister for the Economy Airlangga Hartarto stated that the government will continue to monitor the implementation of financing for the Red and White Village Cooperatives (KDMP) sourced from the State Revenue and Expenditure Budget (APBN). “Yes, we will monitor it, because that financing will have a budget from the APBN,” he said when met at his office in Jakarta on Monday. He also assured that the government has prepared a special budget allocation in the APBN to support this priority programme. Regarding the financing scheme, Airlangga explained that there has indeed been a policy change compared to previous regulations. The changes were made both in terms of financing and activities, with the main goal of encouraging economic activities at the village level. “The most important thing is to encourage activities at the lowest level,” he said. As is known, Finance Minister Purbaya Yudhi Sadewa issued Minister of Finance Regulation (PMK) Number 15 of 2026, which regulates the new KDMP financing scheme. This regulation allows the government to finance the physical development needs of outlets, as well as other cooperative facilities, through the APBN. Under the latest policy, the government can place funds as liquidity sources for state-owned banks in stages, taking into account the state’s financial condition. Financing is provided with a maximum limit of Rp3 billion per KDMP outlet unit, with an interest rate, margin, or profit-sharing of 6 percent per year. In addition, the PMK regulation also stipulates a financing tenor for cooperatives of 72 months, with a grace period for principal and interest payments of 6 months up to a maximum of 12 months. “Instalment payments including interest for financing are made under the following provisions: First, monthly for instalment payments through the distribution of DAU/DBH (General Allocation Fund/Special Allocation Fund). Second, lump sum for the relevant annual instalment for instalment payments through village fund distribution,” as stated in the regulation. With this scheme, the cooperatives’ instalment payment obligations will in practice be supported by the local government transfer mechanism (TKD), both through general allocation funds/profit-sharing funds and village funds, thereby easing the burden on local cooperative managers.