Sri Mulyani Reveals Realization Of Capai Village Funds Of IDR 40.34 Trillion

Minister of Finance Sri Mulyani (Photo: Antara)

Minister of Finance Sri Mulyani Indrawati said that until July 14, 2025, the Village Funds that had been disbursed reached Rp40.34 trillion, or 58.46 percent of the total budget ceiling this year amounted to Rp71 trillion.

He added that of this amount, Rp1.62 trillion was allocated for the Village Cash Direct Assistance (BLT) program, which has reached 7,918 villages throughout Indonesia.

"Village funds have been disbursed Rp40.34 trillion (58.46 percent of the ceiling) as of July 14, 2025. Of that amount, Rp1.62 trillion was used for Village Direct Cash Assistance (BLT) which has reached 7,918 villages throughout Indonesia," he said on his Instagram account @smindrawati, quoted on Monday, July 28.

Sri Mulyani said that the Village Fund is one of the government's strategic instruments to encourage village development directly, including through increasing infrastructure access, improving basic services such as education and health, as well as strengthening the productive economic activities of rural communities.

He conveyed that through Village BLT, the state was present to provide direct support to vulnerable families in order to be able to survive and remain productive, especially in the face of global economic pressure and uncertainty.

"Let's jointly guard the use of the Village Fund so that it is right, right on target, and has a real impact on development," he said.

Previously, Sri Mulyani revealed that the realization of Transfers to Regions (TKD) until Semester I in 2025 reached IDR 400.6 trillion or 43.5 percent of the 2025 State Budget ceiling of IDR 919.8 trillion or higher than the realization in the same period the previous year.

He conveyed that the high realization was driven by an increase in state revenues divided through Revenue Sharing Funds (DBH), an increase in the allocation of General Allocation Funds (DAU), and improvement in the performance of local governments in meeting budget distribution requirements.

"TKD is intended so that the community (regional) can also get good service, be it in the fields of education, health, infrastructure, and also other services properly," he explained in his statement, quoted Friday, July 11.

According to him, the distribution of TKD is used to support equitable distribution of public services in various sectors such as in the field of education, TKD encourages the rehabilitation of classrooms, school construction, and the provision of School Operational Assistance (BOS) and Teacher Professional Allowances (TPG).

Then in the health sector, TKD is used for the construction of hospitals, health centers, and the provision of medical devices. Meanwhile, in the infrastructure sector, TKD finances the construction and rehabilitation of roads, bridges, and a drinking water supply system.

In addition, TKD also supports the payroll of 3.56 million Regional ASN and the appointment of 377 thousand honorary staff to become PPPK through performance-based DAU.

He said that the Government continues to strengthen TKD policies to make them more efficient, on target, and have a real impact on the community, including through reforms in the distribution of Village Funds, regional fiscal incentives, and the development of innovative financing.

"We will continue to encourage regional performance in investment and economic growth. So in that case, various good steps are in terms of revenue by optimizing regional taxes and levies, and transfers that are increasingly based on regional performance," he concluded.