KDMP Managers' Salaries Paid from State Budget, Purbaya Assures No Increase in State Budget Deficit

Finance Minister Purbaya Yudhi Sadewa explained that the salary payment scheme for managers of the Merah Putih Village Cooperative (KDMP) will be implemented gradually, with funding for the first two years sourced from the state budget (APBN).

However, Purbaya assured that these salary payments for KDMP managers will not increase the state budget deficit.

“We ultimately have to pay for two years. That comes from part of the Kopdes funds that haven’t been used yet. We’ll put it in there first,” said Purbaya during a media briefing at the Ministry of Finance in Jakarta on Monday, 11 May 2026.

He added that the funding source will come from previously available budget positions, rather than opening new budget allocations.

“So there’s no new addition to the APBN, no new deficit addition. Because it’s already allocated there,” he stated.

Purbaya further noted that the financing ceiling from state-owned banks (Himbara) to support the KDMP programme, allocated at Rp 40 trillion, has not yet been fully absorbed.

Thus, according to him, this budget space can be used to cover the initial operational funding needs of the KDMP.

“The Himbara financing is Rp 40 trillion in instalments, meaning not all of it has been used yet, so it might be used from there,” he said.

It is known that previously, the Director General of Financial Balance at the Ministry of Finance, Askolani, explained that his side is preparing the state budget as a funding source to meet KDMP employee salary payments in the initial stage. This scheme is designed as a bridge for cooperative operations before they generate their own revenue.

“For the first two years, it will be endeavoured from the APBN,” he said.