Mensesneg denies Kades rejecting the shift of Village Funds for the Red and White Cooperative

JAKARTA - The Minister of State Secretary (Mensesneg) Prasetyo Hadi denied the rejection of village heads regarding the allocation of village funds for the Red and White Village/Neighborhood Cooperative program.

This was conveyed by Prasetyo Hadi in response to the rejection of village heads regarding the allocation of village funds. He questioned the source of the data and emphasized that the government had discussed and carried out socialization from the beginning.

"No one is refusing. Where is the refusal, everything has been discussed since the beginning," said Prasetyo as reported by ANTARA, Wednesday, February 18.

The Minister of Home Affairs explained that the policy was not a reduction in village funds, but rather shifted the allocation and would still focus on village needs.

"This shifts the allocation, not reducing it and the focus of the location is also in the village," he said.

According to him, village development does not only depend on village funds. The government has various other programs that target rural areas, such as the revitalization and renovation of schools, as well as the construction of bridges.

He added that these programs also did not take funds from the village fund.

"It does not use village funds, yes. Although in fact village funds can also be allocated there," said Prasetyo.

Prasetyo ensured that the policy of shifting the allocation of village funds would not interfere with the village development process.

The government is also committed to maintaining the sustainability of village development, while optimizing the use of village funds to strengthen the community's economy through cooperatives.

"No (it doesn't bother)," he added.

It is known that the government allocates 58.03 percent of the 2026 Village Fund budget for the development of the Red and White Village Cooperative (KDMP).

The policy is regulated in the Minister of Finance Regulation (PMK) Number 7 of 2026 which was signed by the Minister of Finance Purbaya Yudhi Sadewa and has been in force since it was enacted on February 12, 2026.

"The adjustment of the allocation as a result of the Government's policy in order to support the implementation of the KDMP is calculated at 58.03 percent of the Village Fund ceiling for each village or IDR 34.57 trillion," read Article 15 paragraph (3) of PMK 7/2026, quoted in Jakarta, Wednesday.

Article 20 paragraph (3) explains the use of the Village Fund for support for the implementation of the KDMP in the form of installment payments for the construction of physical outlets, warehouses, and the completion of the KDMP.

The disbursement of Village Funds to support the KDMP is directly transferred from the State General Cash Account (RKUN) to the account of the fund distribution recipient.

The allocation of the Village Fund in total for the 2026 fiscal year is set at Rp. 60.57 trillion.