Finance Ministry: Salaries of Village Cooperative Employees Supported by State Budget for First Two Years

JAKARTA - The Ministry of Finance has prepared the State Revenue and Expenditure Budget as the funding source for salaries of employees in the Merah Putih Village Cooperatives during the initial phase. This scheme acts as a bridge to ensure the cooperatives’ operations run smoothly before they generate their own income. Director General of Financial Balance at the Ministry of Finance, Askolani, stated that APBN support is prepared for the first two years. “For the first two years, it will be covered from the APBN,” Askolani said at the Ministry of Finance on Tuesday (5/5/2026). Each ministry and agency also handles administrative and technical aspects of recruitment. Once participants are declared successful, the government takes over salary funding through the APBN in the early stage. “For recruitment activities, it’s back to each ministry and agency. For employee acceptance, there is BKN, the Ministry of PANRB, and Danantara,” he explained. This scheme is designed to ensure village cooperatives can operate from the start without funding obstacles. “The government’s plan is that in the first two years, it will be supported from the APBN. After two years, it will use operational funds from the KDMP,” he said. “Hopefully, it will start to exist and become profitable. So, it’s an initial bridging supported by the APBN for the first two years,” he added. Details of the budget allocation are still being discussed internally at the Ministry of Finance. “The details of the APBN will be discussed internally at the Finance Ministry,” Askolani revealed. Salary funding does not come from a single specific ministry. The scheme is designed across ministries and agencies according to their respective authorities. This programme is also linked to the role of Agrinas Pangan Nusantara in strengthening village cooperatives as drivers of the local economy. The government targets the Merah Putih Village Cooperatives to stand independently after two years of initial APBN support.