Deputy Minister of Villages: Village Funds Used to Build Village Cooperatives for Only 6 Years

Jakarta — Deputy Minister of Villages and Disadvantaged Regions, Ahmad Riza Patria, has disclosed that village funds received by each village range from 800 million to 900 million rupiah annually.

Village funds have primarily been utilised to support village activities that assist farmers, including purchasing fertiliser and improving irrigation and embankments, depending on each village’s needs and circumstances. Village fund allocation decisions have traditionally been made by village officials rather than village heads.

Regarding the use of village funds for developing Village Cooperatives, Ahmad Riza Patria stated that the Red-White Village/Sub-district Cooperatives (Koperasi Desa/Kelurahan Merah Putih) are designed to stimulate rural and village community economies, enabling them to become economic actors and economic subjects.

He explained that village fund allocation for Village Cooperatives applies only to the initial stage, covering logistics and physical construction of the cooperative, and operates for a six-year period. Thereafter, to meet village development needs, villages can utilise funding from the national budget, regional budgets, assistance from state-owned enterprises and private sources, as well as loans.

The government is also promoting rural economies through the Free Nutritious Meals Programme (Makan Bergizi Gratis), which is expected to boost agriculture, stimulate micro and small enterprises, and generate employment opportunities.