Purbaya Issues Regulation to Accelerate Disbursement of Funds for Red and White Village Cooperatives
Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has established a new regulation governing the procedures for disbursing funds from transfers to regions (TKD), such as general allocation funds (DAU) or profit-sharing funds (DBH) and village funds, to accelerate the physical development of outlets, warehouses, and equipment for Red and White Village Cooperatives (KDMP) and Red and White Sub-District Cooperatives (KKMP).
The new regulation is outlined in Ministerial Regulation on Finance (PMK) No. 15 of 2026. PMK 15/2026 was signed by him on 16 March 2026 and takes effect from 1 April 2026.
“That to provide guidelines for the disbursement of general allocation funds/profit-sharing funds or village funds as referred to in letter a, it is necessary to regulate the management of the disbursement of general allocation funds/profit-sharing funds or village funds for the payment of all obligations arising from the implementation of activities to accelerate the physical development of outlets, warehouses, and equipment for Red and White Village/Sub-District Cooperatives,” quoted from the considerations section of PMK 15/2026, Thursday (2/4/2026).
In the fund placement scheme, Article 2 of the PMK states that the Minister of Finance will place funds as a source of liquidity financing for banks in stages, taking into account the state financial liquidity conditions, for the acceleration of physical development of outlets, warehouses, and equipment for KKMP/KDMP.
Financing by the Bank is provided with a maximum limit of Rp3 billion per KKMP/KDMP outlet unit. The interest rate/margin/profit-sharing rate to the financing recipient is set at 6% per year, with a financing tenor of 72 months.
The grace period for financing is set at 6 months or a maximum of 12 months for principal instalment payments and interest/margin/profit-sharing for the financing.
“Disbursement of DAU/DBH or Village Funds for the payment of all obligations arising from the implementation of activities to accelerate the physical development of outlets, warehouses, and equipment for KKMP/KDMP is carried out based on the principles of transparency, accountability, prudence, and performance-based,” as stated in Article 4.
For the mechanism of disbursing TKD funds such as DAU or DBH as well as village funds, initially the bank will submit a request letter for the disbursement of DAU/DBH or Village Funds to pay principal instalments and interest/margin/profit-sharing to the Budget User Representative of the State General Treasurer (KPA BUN).
The request letter is submitted after the Bank receives the work handover document from the Minister of Cooperatives, which has been reviewed by the Financial and Development Supervisory Agency and/or internal government supervisory apparatus of ministries/institutions/regional governments with guidance from the Financial and Development Supervisory Agency.
“The Bank is responsible for the accuracy of the contents in the request letter,” as stated in Article 6.
After the request letter procedure is fulfilled, the KPA BUN Manager of General Transfer Funds or the KPA BUN Manager of Village Funds, Incentives, Special Autonomy and Privileges will submit a disbursement recommendation for DAU/DBH to the KPA BUN Disbursement of General Transfer Funds, or the coordinator of KPA BUN Disbursement of Transfers to Regions.
Based on the recommendation, the KPA BUN Disbursement of General Transfer Funds or the coordinator of KPA BUN Disbursement of Transfers to Regions will deduct the DAU/DBH disbursement to the Regional Cash Management Account (RKUD) and disburse the deducted DAU/DBH funds to the fund disbursement holding account.
The amount of fund disbursement from the deducted DAU/DBH to the fund disbursement holding account and village fund disbursement as the basis for budget adjustments in the Regional Budget (APBD) by the Regional Government and Village Budget (APB Desa) by the Village Government shall comply with applicable laws and regulations.
The mechanism for the procedures for disbursing DAU/DBH or Village Funds is carried out using an electronic-based information system and also implements provisions regarding accounting and subsequent reporting.