Purbaya: State Budget Covers Rp40 Trillion Kopdes Installments, Other Schemes Still Under Review

Indonesia’s Finance Minister Purbaya Yudhi Sadewa announced that the state budget will cover annual installments of Rp40 trillion for the Merah Putih Village Cooperative (Kopdes) program, with funding drawn from the village fund allocation.

The minister stated that from the state budget perspective, the country will cover installments of around Rp40 trillion per year for the Kopdes program. He clarified that this amount will be taken from the annual village fund budget of Rp60 trillion, meaning approximately Rp40 trillion will be allocated yearly for Kopdes installments over a six-year period.

Purbaya emphasized that while the installment payments are confirmed to be covered by the state budget through village funds, other components of the Kopdes financing scheme, such as operational costs and managers’ salaries, are still under review and have not yet been confirmed for state coverage.

The financing scheme is part of a revised regulation for the Merah Putih Cooperative program, following the issuance of the latest Presidential Instruction. The total financing for the program is estimated at Rp240 trillion, intended to support the establishment of 80,000 Kopdes units across the country.

Physical development costs for each Kopdes unit are estimated at Rp2.5 billion per location. The minister noted that the revision of the Kopdes financing regulation was necessary because the previous ministerial regulation was no longer applicable after the new Presidential Instruction was issued.