Minister of Finance Sri Mulyani Indrawati said that the Government is paying serious attention to strengthening the village economy through the development of cooperatives and Micro, Small and Medium Enterprises (MSMEs).
He added that in the 2026 State Revenue and Expenditure Budget Draft (RAPBN), the Government prepared a budget of IDR 181.8 trillion, one of which was through a priority program launched by President Prabowo Subiantau, namely the establishment of 80 thousand units of the Red and White Village Cooperative.
He explained that the allocation of village funds in 2026 reached IDR 60.6 trillion. Although this amount is slightly lower than in 2025 which amounted to IDR 71 trillion.
In addition, Sri Mulyani added that the Government also provided significant support through the placement of funds of IDR 83 trillion at Himbara Bank to support the development of village cooperatives.
Sri Mulyani explained that when combined, the total funds directed to villages and cooperatives almost doubled compared to the previous year's allocation.
"So if you look at the village funds of Rp. 60 trillion compared to last year, it might go down. But if you add it to the Merah Putih village co-operation, it will increase by more than 50 percent. Because we include more than Rp. 83 trillion. The increase in village funds last year was Rp. 70 trillion. So if you add Rp. 83 trillion, it will increase," he said at the Working Meeting of Committee IV with the Minister of National Development Planning/Head of Bappenas, Minister of Finance and the Governor of BI, Tuesday, September 2.
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Sri Mulyani emphasized that although these programs are national in nature, their implementation directly targets the regions, villages, and even communities at the sub-district level, thus becoming an important strategy in encouraging economic equality.
"When viewed from the nomenclature of the program, it seems as if the national program is a priority. However, this is the place in the back area, in villages, sub-districts and even directly to the community," he concluded.
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