JAKARTA - In the 2026 State Revenue and Expenditure Budget Draft (RAPBN), the government has prepared a budget of IDR 60 trillion for Village Funds and IDR 83 trillion for Village Cooperatives/Redih Villages (KDMP).
"So, in this case, we built the village through various channels or budgets," said Finance Minister Sri Mulyani Indrawati at the 2026 RAPBN Press Conference and Financial Note in Jakarta, reported by ANTARA, Saturday, August 16.
The two shopping posts are part of President Prabowo Subianto's priority program related to the development of villages, cooperatives, and micro, small and medium enterprises (MSMEs).
For Village Funds, Book II of the Financial Note and the RAPBN for Fiscal Year 2026 explains that one form of using the budget is to support the strengthening of village economic institutions.
The Village Fund will also be used to support KDMP through providing loan refund support if the cooperative fails to pay and in order to ensure the quality of the loan giver's assets is maintained.
Meanwhile, the budget for KDMP is in the form of an injection of funds through Himbara Bank.
"In this case, the Ministry of Finance will put its funds in Himbara Bank. So, even though President Prabowo Subianto said the cooperative would get a loan from Himbara, the funds came from the government," explained Sri Mulyani.
In addition to the Village Fund and support for KDMP, the government has also allocated a budget for a number of other shopping posts that are part of the village development, cooperative, and MSME development programs.
For example, for People's Business Credit (KUR) worth IDR 320 trillion, interest subsidies of IDR 36.5 trillion, to ultra Micro credit (UMi) which did not mention the details of the budget.
Furthermore, Book II of the Financial Note and the RAPBN for Fiscal Year 2026 also detailed the priority strategic plan for MSMEs which are divided into three programs, namely first, the involvement of MSMEs in the Free Nutrition Food (MBG) program.
Then the two SPA MSME platform programs that integrate cross-agency services, and thirdly, business card programs (productive) aimed at economic empowerment for business actors and labor through capacity building.
Previously, Indonesian President Prabowo Subianto said villages and sub-districts would become the backbone of the people's economy when submitting Government Introductory / Information to the Bill on the State Budget for Fiscal Year 2026 and its Financial Note.
He emphasized that he would revive the people's economy through strengthening the Red and White Kopdes by building villages, generating cooperatives, empowering Micro, Small and Medium Enterprises (MSMEs), and encouraging local economic growth.
Prabowo also said the government would remove loan sharks from Indonesian soil by utilizing the role of KDMP.
"The government has prepared low-cost funding through Himbara Bank so that village cooperatives in Red and White Villages can get access to financing with low interest rates," he concluded.
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