Purbaya Office to Begin Repayments for Kopdes Construction from September 2026

The government will begin repaying the instalments for the construction of Red and White Village Cooperatives (KDMP) and Red and White Subdistrict Cooperatives (KKMP) in September 2026, considering that 4,000 constructions have been realised across various regions in Indonesia, out of this year’s target of around 30,000 kopdes.

Director General of Financial Balance at the Ministry of Finance, Askolani, stated that these repayments to the banks will utilise the village funds budget allocation for KDMP, and general allocation funds (DAU) or revenue-sharing funds (DBH) for KKMP, which are part of the regional transfer funds (TKD).

“And Alhamdulillah, actually the money for the villages won’t be lost, because from the Rp 3 billion value of the KDMP, that will become the village’s asset. So they will receive it with far greater economic added value,” said Askolani at the Ministry of Finance headquarters in Jakarta, quoted on Wednesday (6/5/2026).

The repayment scheme for the construction of KDMP or KKMP has actually been stipulated in Minister of Finance Regulation (PMK) Number 15 of 2026. The state will pay the construction costs in stages over six years or 72 months at an annual interest rate of 6%.

Before the state makes the instalment payments to the banks that are members of the State-Owned Banks Association (Himbara), Askolani said that an audit process will first be conducted by the Financial and Development Supervisory Agency (BPKP), in accordance with the invoices submitted by the banks.

“Well, this is around September, depending. We provide a grace period of between 6-12 months since it was implemented. So that determines the month we pay, but our estimate is, if it’s completed at the beginning of 2026, then with a 6-12 month grace period, we should start repaying in 2026,” said Askolani.

Askolani could not yet disclose the amount of the budget realisation that the state will disburse to repay the instalments for the construction of KDMP and KKMP in September 2026. Because it still needs to await the audit from BPKP.

“So we have this check and balance. Later, if BPKP has any corrections, we follow them, and then once the bank proposes to us and provides the documents along with BPKP’s review, we will start paying the instalments annually over six years,” he emphasised.