Indonesian Political, Business & Finance News

Finance Minister States Salary Scheme for Village Cooperatives Yet to Be Discussed in Detail

| | Source: REPUBLIKA Translated from Indonesian | Finance
Finance Minister States Salary Scheme for Village Cooperatives Yet to Be Discussed in Detail
Image: REPUBLIKA

Finance Minister Purbaya Yudhi Sadewa admitted that he does not yet know the details of the salary scheme for employees of the Merah Putih Village Cooperatives (Kopdes), including the funding source. He stated that the financing for the programme is already underway, although he was not directly involved in the discussions. “My subordinates have met with them, but there has been no report. So, it’s done, the signing has taken place,” Purbaya told reporters at the Ministry of Finance office on Monday (4/5/2026). Purbaya explained that the budget for the programme does not come from a new addition but from residual allocations that have not yet been absorbed. “The Merah Putih Kopdes is allocated a certain amount per year. Not all have been established yet, so there is still excess money that can be used for now,” he said. According to him, the use of this budget is only temporary for the next two years. “So, it’s not adding to the budget, but there is indeed a surplus,” he stated. However, regarding the institutional scheme for employees, including the possibility of financing through the state budget or a specific ministry, Purbaya admitted he does not know the details. “I haven’t discussed that, so I don’t know. I might say something wrong,” he said. He only mentioned that the employees will be under state-owned enterprises for the first two years before becoming cooperative officers, while other institutional aspects still need to be confirmed with the relevant ministries.

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