Indonesia's Finance Minister Clarifies Funding for Village Cooperative Managers

Indonesian Finance Minister Purbaya Yudhi Sadewa has addressed concerns regarding the budget for compensating managers of the Village Cooperative "Kopdes Merah Putih." He assured that the funds for these salaries would not necessitate new budgetary allocations but would instead be drawn from existing, unabsorbed funds within the "Kopdes Merah Putih" program itself.

"We will allocate from several related ministries/institutions," Sadewa stated, indicating a cross-ministerial approach to utilizing existing resources. He explained that the initial allocation for the cooperative had been made for a full year. As not all cooperatives have been established yet, the remaining funds will temporarily cover the managers' salaries. "It's only for the next two years. So, the money is there," he added, providing reassurance about the financial viability of this interim measure.

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We will allocate from several related ministries/institutions.

The status of these managers post their two-year contract was previously detailed by Coordinating Minister for Food Affairs and Head of the Kopdes Merah Putih Acceleration Task Force, Zulkifli Hasan. Managers who successfully pass the selection process will be employed under a fixed-term employment agreement (PKWT) with PT Agrinas Pangan Nusantara, a state-owned enterprise, for a period of two years. This structure positions them initially as employees of Agrinas Pangan, a strategy deemed necessary by the government to bolster the formation and initial operations of Kopdes Merah Putih across various regions.

During this contract period, Agrinas Pangan will handle salary payments, aligning with the managers' status under the SOE. While specific details on the funding sources and salary amounts remain undisclosed, the government's commitment to supporting this grassroots economic initiative is clear. The program aims to create new economic growth centers at the village level, streamline supply chains, strengthen farmers' positions, and ensure fair commodity prices, while also serving as a channel for social aid distribution.

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It's only for the next two years. So, the money is there.