Indonesian Political, Business & Finance News

Will the State Budget Cover Salaries for Merah Putih Village Cooperative Managers? Purbaya's Response

| Source: CNBC Translated from Indonesian | Finance
Will the State Budget Cover Salaries for Merah Putih Village Cooperative Managers? Purbaya's Response
Image: CNBC

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has spoken out regarding the budget for salaries of employees, including managers, of the Merah Putih Village Cooperative (Kopdes), which is reportedly to come from the State Revenue and Expenditure Budget (APBN). Purbaya admitted that he has not yet received clear information from Coordinating Minister for Food Affairs Zulkifli Hasan regarding the payment of salaries for the managers of Kopdes currently being selected. However, he assured that there is a directive for the state to cover the salary budget for two years initially when they officially become employees of the state-owned enterprise under PT Agrinas Pangan Nusantara (Persero). “I don’t know. Ask Mr Zulhas about that. What I know is that I am obliged to pay it, so be it,” said Purbaya at his office in Jakarta on Monday (4/5/2026). According to Purbaya, the information about the APBN’s obligation to cover the salaries of Merah Putih Kopdes managers arose because officials from the Ministry of Finance under him never provided reports on the progress of meetings on procurement in the Coordinating Ministry for Food Affairs. “It turns out my subordinates have already met with them. But they never reported. So, it’s already signed. So, the financing is clear,” he emphasised. To anticipate the APBN’s obligation to cover the salaries of the Merah Putih Kopdes managers in the future, Purbaya said he would review the budgets of Ministries/Institutions (K/L) that are not optimally absorbed each year so they can be redirected. “We will allocate from several related ministries or institutions,” stated Purbaya. “The Merah Putih Kopdes, how much is allocated per year? They haven’t all been formed yet, right? There is still surplus money that can be used for that in the meantime. It’s only for the next two years. So, the money is there,” explained Purbaya. Previously, Coordinating Minister for Food Affairs Zulkifli Hasan also could not yet explain the salary scheme for the 30,000 Merah Putih Kopdes managers. “The salaries will be discussed and conveyed by the Ministry of Finance at the appropriate time,” he said. However, he assured that the payment source would still come from the scheme prepared by the government through Agrinas. “Since this is under Agrinas, Agrinas will certainly pay,” said Zulhas. Details of the funding source will be decided in the next stage. Currently, the process is in the discussion phase. “The next scheme will be decided,” he said.

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