Gov’t Sets Priorities for 2021 Village Funds Utilization

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 10 Desember 2020
Category: News
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Minister of Villages, Disadvantaged Regions, and Transmigration Abdul Halim Iskandar (Photo by: Documentation of Public Relations of Cabinet Secretariat)

The Indonesian Government has set three priorities for the utilization of next year’s Village Funds.

First, national economic recovery. The Funds can be used to form, develop, and revitalize village-owned enterprises (BUMDes) and Joint BUMDes (BUMDesma).

“In the future, BUMDes will be the spearhead for economic growth in the village, especially if it is a legal entity,” Minister of Villages, Disadvantaged Regions, and Transmigration Abdul Halim Iskandar stated in a release published by, Thursday (10/12).

In an effort to recover the economy, the Ministry of PDTT will also focus on providing village electricity as many villages have not yet received electricity, especially in Papua, West Papua and East Nusa Tenggara.

“Then, the development of productive economic businesses, especially those managed by BUMDes and BUMDesma,” he said.

Second, implementation of national priority programs. Those include village data collection, mapping of potential and resources, and development of information and communication technology.

The Minister stated that the acceleration in economic digitization needs to be done so that village’s superior products can be exposed and connected to the offtakers and the villages can have their online sales facilities.

“The national priority programs also include the development of tourist villages and inclusive villages, strengthening of food security and stunting prevention,” he added.

Third, adapting to new habits or creating COVID-19 safe villages.

The Minister also revealed three matters that need to be considered in the utilization of the Village Funds. First, it must be in accordance with the village authority. Second, it is done in a self-managed manner, the village funds cannot be managed by third-party. Third, it must be done using the PKTD (labour-intensive projects financed in cash by village fund) method, be it productive infrastructure or productive economy.

“Productive infrastructure can be carried out by the village government, but when it comes to the productive economy, PKTD can only be done by BUMDes,” he concluded.(PR of Ministry of Villages, Disadvantaged Regions, and Transmigration Abdul /UN) (FI/LW)


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