Indonesian Political, Business & Finance News

Eko Suwanto: DIY Provides IDR 132.5 Billion in Special Financial Assistance to Villages Amidst Village Fund Cuts

| Source: DETIK_JOGJA | Sosial Policy

Chairman of Commission A of the DIY DPRD, Eko Suwanto, stated that the DIY Regional Government has allocated Special Financial Assistance (BKK) amounting to IDR 132.5 billion to support development in villages and urban villages. This budget was allocated when the central government cut the allocation of Village Funds.

This was revealed by Eko during a dialogue at the DIY DPRD Journalist Discussion Forum, Thursday (February 26, 2026). He also revealed that he had received complaints from residents regarding the cuts in Village Funds.

“In a working meeting of Commission A of the DIY DPRD with village heads/village chiefs, regency/city governments, and the DIY Regional Government, the disappointment and anxiety of the community regarding the significant decline in Village Funds were revealed. One of the village representatives present described what was happening as ‘slashing’ of village funds, rather than just a cut,” said Eko, as stated in a written statement received by detikJogja today.

“Although conveyed casually and politely, we understand that this is the voice of the community who want the cuts or, in his words, the ‘slashing’ of village funds to be canceled and the village funds returned to the levels of previous years,” continued the PDIP politician.

Based on records and reports from village heads and village chiefs in DIY, Eko said that the cuts in Village Funds in DIY in 2026 were considered extreme. The average budget received by villages in the four regencies/cities decreased by up to 74 percent.

Eko said that the decline in Village Funds in Kulon Progo Regency reached up to 71 percent, in Bantul by 78 percent, in Sleman by 25 percent, and in Gunungkidul by up to 71 percent.

“The average decline reaches 74 percent. This is a serious blow to village development,” he emphasized.

Furthermore, Eko explained that the cuts in Village Funds contrast with the spirit of village development that has been outlined since the birth of Law Number 6 of 2014 concerning Villages. According to him, this regulation became a milestone in strengthening villages as centers of development, public services, and community economic empowerment.

“The impact of the budget cuts is clearly felt at the village level, hindering infrastructure development, the agricultural sector, and social assistance programs for poor residents. The situation is actually worse because, until now, the Village Funds have not been disbursed,” he explained.

“According to information from several village heads we met, as of February 26, 2026, the Village Funds have not been disbursed. We will go to the field to check again on the process of disbursing the 2026 Village Funds,” he added.

Based on the aspirations of the community and village officials, Eko said that there is hope and a demand that the central government cancel the cuts and restore the budget allocation to at least the level of the previous year.

“We believe that the village funds that have been provided so far have been beneficial. If there are shortcomings, let’s fix them. For example, by reforming bureaucracy and reforming the budget to improve public services, empower the community’s economy, and develop culture,” said Eko.

To support the development of regencies/cities to villages/urban villages, Eko added that the DIY Regional Government provides BKK amounting to IDR 301.3 billion in 2026, with details of IDR 168.8 billion for BKK for Regencies/Cities and IDR 132.5 billion for villages and urban villages.

“Villages and urban villages must be centers of development and drivers of the community’s economy. The budget that has been cut today must be replanted so that development at the grassroots level does not stop,” he emphasized.

Here is a comparison of the Village Fund allocation between 2025 and 2026 in DIY.

The total allocation of Village Funds for DIY in 2025 amounted to IDR 539,549,316,000, which decreased to IDR 141,661,419,000 in 2026, or a negative difference of IDR 397,887,897,000.

The Village Funds for all of Kulon Progo in 2025 amounted to IDR 105,234,651,000, down to IDR 30,033,027,000 in 2026. The difference reached IDR 75,201,624,000, or a decrease of 71 percent.

In Bantul, the Village Funds in 2025 amounted to IDR 127,393,902,000, decreasing to IDR 27,720,818,000 in 2026. The difference reached IDR 99,673,084,000, or 78 percent.

The Village Funds in Sleman in 2025 amounted to IDR 125,833,460,000, decreasing to IDR 31,941,508,000 in 2026. The difference reached IDR 93,891,952,000, or 75 percent.

The Village Funds for all of Gunungkidul in 2025 amounted to IDR 181,087,303,000, decreasing to IDR 51,966,066,000 in 2026. There is a difference of IDR 129,121,237,000, or 71 percent.

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