Rp4.1 Trillion of Central Java's Rp6.8 Trillion Village Fund Allocated to Koperasi Desa Merah Putih

SEMARANG — The Village Fund budget for Central Java Province in 2026 stands at Rp6.8 trillion. However, Rp4.1 trillion of that total has been earmarked specifically for the Koperasi Desa Merah Putih (KDMP) programme, the government’s flagship Red and White Village Cooperative initiative.

Of the total Village Fund allocation of Rp6.831 trillion, only Rp2.633 trillion remains as regular Village Fund disbursements, whilst Rp4.198 trillion is channelled into the KDMP programme.

The Rp4.1 trillion will be used for various KDMP requirements, including the physical construction of cooperative buildings, warehousing facilities, and product development.

The allocation is based on Minister of Finance Regulation (PMK) Number 7 of 2026 concerning Village Fund Management, which came into effect upon its promulgation on 12 February 2026.

The reallocation represents a dramatic reduction in discretionary village funding. Each village in Central Java will now receive between Rp300 million and Rp400 million in regular Village Fund transfers — a sharp drop from the previous year. In 2025, Central Java’s total Village Fund allocation reached Rp7.9 trillion, with each village receiving an average of Rp1 billion.

Minister of Cooperatives Ferry Juliantono has said the government will accelerate the construction of 80,000 physical outlets for the Red and White Village and Sub-village Cooperatives by coordinating across multiple ministries, including the Ministry of Agrarian Affairs, the State-Owned Enterprise Regulatory Board, and the Ministry of Home Affairs, as part of efforts to stimulate village-level economies.