Addressing Extreme Poverty, Village Governments Are Asked to Contribute More

Head of Sub-Directorate for Village Funds at the Ministry of Finance, Jamiat Aries Calfat. (Photo: Doc. Antara)

JAKARTA - Head of Sub-Directorate for Village Funds at the Ministry of Finance, Jamiat Aries Calfat, said the central government encouraged village governments to contribute more to addressing extreme poverty through the issuance of Minister of Finance Regulation (PMK) Number 128 of 2022 concerning Village Fund Management.

"In PMK Number 190 of 2021, Village Cash Direct Assistance (BLT) Beneficiary Families may not coincide with recipients of social assistance from the central and regional governments.

"In PMK Number 128 of 2022, we will change this provision so that the village BLT KPM (Beneficiary Families) can also receive social assistance provided by the regional government or sourced from the APBD", Jamiat said in the PMK 128/2022 Kupas Complete Webinar quoted Antara, Thursday 8 September.

The Central Statistics Agency (BPS) stated that the number of poor people in March 2022 was 26.16 million people, consisting of 11.82 million people in urban areas and 14.34 million people in rural areas.

"Through PMK Number 128 of 2022, we indirectly aim to encourage local governments to contribute to addressing extreme poverty. We encourage the village government to provide social assistance to residents who are categorized as extremely poor as reinforcement so that they can get out of this condition", he said.

This regulation supports President Jokowi's directive after the announcement of the increase in the price of fuel oil (BBM) so that local governments provide 2 percent of the General Allocation Fund (DAU) to be used as social assistance for the poor and vulnerable to the poor.

"Of course, with President Jokowi's directive, if later in 2022 the village government provides social assistance to people who receive social assistance from the regional government or the central government, this has already been given. Because through PMK Number 128 of 2022, we have allowed this", he said.

Through Presidential Regulation Number 104 of 2021, President Jokowi stated that at least 40 percent of village funds need to be allocated for village BLT, 20 percent for food and animal security, and 8 percent for handling COVID-19.

In the latest regulation, the government regulates that the remaining village BLT is no longer stored in the state treasury account, but is returned to the village concerned to be used as a poverty alleviation budget, for example through a stunting program.

"After being distributed to the village concerned, the funds must be used or prioritized for its use for handling extreme poverty", he said.