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View all search resultsA single top-down mandate is draining Indonesia’s village coffers for state cooperatives, gutting the local budgets that keep maternal clinics running, malnourished children fed and grassroots democracy alive.
In February, Finance Minister Purbaya Yudhi Sadewa issued a regulation requiring 58 percent of village funds to be allocated to support President Prabowo Subianto’s flagship Red and White Cooperatives program.
The Corruption Eradication Commission (KPK) has documented a total of 851 cases of corruption involving village funds between 2015 and 2024. The KPK also revealed that village fund corruption is the most prevalent form of graft pertaining to the management of state finances.
The House of Representatives agreed on Tuesday to endorse a proposed revision to the 2014 Village Law, which seeks to grant village heads more funds and longer terms as a House initiative, paving the way for what experts deemed a "pork barrel" legislation to be passed into law.
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