2026 Village Fund Directives: Empowerment and Food Security

The Indonesian government, through the Ministry of Villages and Development of Disadvantaged Regions, has established a strategic roadmap for Village Fund (Dana Desa) policies for the 2026 fiscal year. This policy serves as a concrete step in supporting the “Golden Indonesia 2045” vision. The primary focus for 2026 is the optimization of community empowerment, strengthening food security, and supporting the downstreaming of superior village products.

Based on Law Number 17 of 2025 concerning the 2026 State Budget (APBN), the total Village Fund budget is planned at IDR 60.57 Trillion. This substantial allocation is expected to drive economic growth from the bottom up to eradicate poverty and improve the quality of human life in rural areas.

Priority Focus of the 2026 Village Fund

The Draft Village Ministry Regulation (Permendesa) for 2026 outlines several crucial points that every village government must follow when drafting their Village Budget (APBDes):

1. Support for ‘Merah Putih’ Village Cooperatives

A significant shift in 2026 is the mandatory support for the implementation of the Red and White Village Cooperative (Koperasi Desa Merah Putih). This economic institution is projected to become a pillar for increasing community welfare and supporting the Free Nutritious Meal (MBG) national priority program.

2. Food, Energy, and Water Security

Villages are encouraged to achieve self-sufficiency in food, energy, and water. Budget allocations can be directed toward building village food barns, developing small-scale renewable energy, and providing clean water infrastructure.

3. Extreme Poverty Eradication

The government maintains the Village Cash Assistance (BLT Desa) program. In 2026, there is no longer a rigid percentage limit (previously capped at 15%), but the assistance amount is set at IDR 300,000 per Beneficiary Family (KPM) every month.

4. Climate-Resilient and Disaster-Ready Villages

Given the challenges of climate change, the 2026 Village Fund prioritizes adaptive measures. This includes natural resource conservation, eco-friendly waste management, and reforestation efforts.

Optimizing Community Empowerment

Empowerment in 2026 focuses on developing independence through knowledge and skills in productive sectors:

• Economic Capacity: Entrepreneurship training, local raw material handicraft courses, and culinary training for village specialties.
• Village Digitalization: Building digital infrastructure to accelerate public services and promote village potential online.
• Tourism Development: Improving tourism facilities like gazebos, homestays, and cultural promotion events.

Case Studies: Success in Village Fund Utilization

1. Food Security in Padaulun Village: Utilized IDR 136.9 million for catfish farming, producing 3-4 tons per cycle and increasing Village Original Income (PAD) by 5% annually.
2. Energy Independence in Subun Bestobe Village: Allocated IDR 62.4 million for household-scale solar power (PLTS), providing electricity to 13 families off the main grid.
3. Waste Management in Singapadu Village: Built 654 biopore units, solving organic waste issues while producing organic fertilizer for residents.

Mechanism for Setting Village Priorities

To ensure targeted spending, villages must follow participatory planning. Documents like the RPJMDesa and RKPDesa must be drafted based on Village Deliberations (Musdes).

Implementation in the field prioritizes the Cash for Work (Padat Karya Tunai Desa – PKTD) pattern. This requires the use of local labor and raw materials so that money continues to circulate within the village, directly impacting local income.

The Role of Professional Assistant Personnel (TPP)

Success in 2026 depends heavily on active village assistants. According to Kepmendesa Number 294 of 2025, their roles include:

• Socializing the latest regulations regarding budget focus.
• Facilitating strategic village deliberations.
• Supervising fund utilization to prevent deviations from national priorities.