Indonesian Finance Minister Maintains Stance on Village Fund Disbursement

Controversy Surrounding Dana Desa Allocation

Finance Minister Purbaya Yudhi Sadewa has refused to alter the government's policy regarding the disbursement of village funds (Dana Desa) despite widespread protests from village heads across Indonesia. The minister maintained that the existing policy will remain in place, stating, "Let's just let them protest, the policy is already set."

Details of the 2025 Disbursement

Purbaya revealed that the second phase disbursement of Dana Desa in 2025 will amount to Rp 7 trillion. A significant portion of these funds will be withheld by the central government to finance the Koperasi Desa/Kelurahan (Kopdes/Kel) Merah Putih program. This initiative has been a point of contention among village heads who are concerned about the redirection of funds meant for direct village development.

Background on the Koperasi Merah Putih Program

The Finance Minister had previously explained that out of the total annual Dana Desa allocation of Rp 60 trillion, Rp 40 trillion will be utilized to finance the development of Kopdes Merah Putih. This significant reallocation has sparked debate and resistance from various stakeholders at the village level.

Implications of the Policy

The government's firm stance on this matter indicates a strong commitment to implementing the Kopdes Merah Putih program, despite the backlash. This policy decision reflects the government's priorities in restructuring village-level economic initiatives through cooperative development.