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View all search resultsPlan to slash village funds to finance Red and White cooperatives draws scrutiny
The proposed 2026 allocation would mark the lowest level of village funding since the program was launched by former president Joko “Jokowi” Widodo in 2015.
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Struggle for life: Two women carry pasture grass for cattle on Oct. 3 in Parangbatu village, Tuban, East Java. Residents in the village still depend on forests for their livelihoods. (Antara/Aguk Sudarmojo)
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illage officials have voiced concerns over the central government's decision to significantly cut down village funds in the 2026 fiscal year budget to finance the Red and White Rural Cooperatives (KDMP) program, warning that the reductions could halt key public programs.
Dozens of village heads under the All-Indonesia Village Administration Apparatus Association (Papdesi) visited the Finance Ministry in Central Jakarta on Thursday to protest the planned cuts.
Dwinanto, head of Krandegan village in Purworejo regency, Central Java, said the cuts would put enormous pressure on local administrations’ fiscal capacity.
“This situation is very burdensome, as villages must continue delivering services and development projects despite shrinking budgets,” he said on Thursday as quoted by Kompas.com.
According to Dwinanto, Rp 40 trillion of the Rp 60.6 trillion allocated for next year’s village fund is set to be redirected to the KMP program. With only about Rp 20 trillion remaining nationwide, each village would receive an average of just Rp 273 million.
“With such a limited budget, we will be forced to halt key programs for the public. This clearly threatens village development,” he added.
The proposed 2026 allocation would mark the lowest level of village funding since the program was launched by former president Joko “Jokowi” Widodo in 2015.
