Gov’t Amends Regulation on Village Fund Management
Date 27 Mei 2020
The Government has announced it has amended Regulation of Minister of Finance (PMK) Number 50 / PMK.07 / of 2020 on Village Funds Management, which takes effect on 19 May 2020.
The Government stated that the amendment of the regulation aims to speed up the distribution of village funds direct cash assistance (BLT Desa), adding that it has raised the total budget for BLT Desa from Rp 21,192 trillion to Rp31,789 trillion.
BLT Desa will be distributed to the poor or underprivileged family in villages that have not received the Government’s assistance programs, including the Family Hope Program, Staple-Food Card, as well as Pre-Employment Card.
The beneficiaries will receive BLT Desa worth Rp600,000 for the first three months and Rp300,000 for the next three months, which has been started in April 2020.
In total, each family will receive a total of Rp2,700,000, which has increased by Rp900,000 from its initial amount.
The distribution of village funds is a priority program for BLT Desa; thus village administrations are expecred to distribute the funds appropriately.
Under this program, there will be discontinuation of Village Funds distribution Phase III for village administrations that fail to implement the program and a 50 percent cut for their Village Funds Phase II for independent villages.
Based on the amendment, the exceptions will be applied if the results of special deliberations concluded that there are no prospective beneficiaries found in the Family Hope Program.
In the new Regulation of Finance Minister, there will be no maximum limit on the Village Funds used for BLT Desa, while the previous regulation Number 205 / PMK.07 / 2019 limited the maximum ceiling for BLT Desa by 35 percent.
In addition, the new regulation also regulates relaxation and convenience that will be provided to village administrations regarding the document on the requirements for channeling village funds. (Ministry of Finance / EN)
Translated by: Syarifah Aisyah
Reviewed by: M. Ersan Pamungkas