Technical Guide: Integrated Funding Synergy for the Construction of Red and White Village Cooperatives (KDMP

The central government, through the Ministry of Home Affairs, has officially issued a critical strategic instruction regarding the acceleration of the physical construction of Red and White Village Cooperatives (KDMP). This policy is far more than a standard administrative appeal; it represents a fundamental shift toward integrated funding synergy between Provincial Governments, Regency/City Governments, and Village Governments.

In the 2026 fiscal landscape, this synergy is designed to expedite the provision of vital infrastructure, specifically food outlets and representative warehouses at the village level. For village officials, mastering this collective budgeting mechanism is essential. It ensures that every fund allocation within the Village Budget (APB Desa) remains compliant with valid regulations, thereby shielding the administration from procedural errors and potential legal liabilities in the future.

The KDMP is envisioned as the new “economic engine” of rural Indonesia, capable of shortening the food distribution chain that has historically marginalized local farmers and burdened consumers. By establishing food warehouses at the grassroots level, national food security evolves from a central slogan into a localized reality. The village’s primary role in this synergy is providing the foundation: land readiness. Without a stable and legally clear site, the funding support from central and regional tiers cannot be effectively realized.

The Legal Architecture of KDMP Acceleration

This collaborative funding model is built upon several interlocking regulatory texts that provide the necessary legitimacy for every level of government to allocate funds. The primary 2026 legal references include:

• Presidential Instruction (Inpres) Number 17 of 2025: Specifically governs the acceleration of physical infrastructure for KDMP outlets and warehouses as part of the National Strategic Program for Food Sovereignty.
• Ministry of Home Affairs Circular (SE Mendagri) No. 100.3.1.3/8944/SJ (Nov 10, 2025): Provides early technical directives for regional heads to map funding potential and initiate inter-agency coordination.
• Ministry of Home Affairs Letter No. 100.3.1.3/3507/SJ (April 8, 2026): Clarifies the “Joint Funding Synergy” mechanism to ensure there is no duplication of budgets (overlapping) between the Regional Budget (APBD) and the Village Budget (APB Desa) for the same expenditure object.

This legal clarity provides a “safe harbor” for Village Heads and the BPD when performing necessary budget shifts. Transparency and strict adherence to these rules are the keys to ensuring that the mission of rural economic empowerment is not compromised by administrative mismanagement.

Village Obligations: Land Readiness and Engineering Standards

Within the synergy framework, the Village Government is primarily responsible for two technical aspects of land readiness. Villages must provide locations that are “construction-ready” according to specific standards:

1. Land Preparation and Earthworks (Cut and Fill)

This involves the early physical preparation of the site. The cut and fill process is essential to create a level and stable contour before the actual construction of the warehouse or outlet begins. Proper earthworks prevent long-term structural issues and ensure that when the construction provider arrives, the site is ready for immediate foundation work.

2. Strategic Land Procurement

For villages that do not currently possess suitable Village Treasury Land (TKD), the government is permitted to conduct new land procurement. This process must be driven by actual necessity and follow rigorous procedures to ensure accountability in the use of public funds. In 2026, land procurement for KDMP is categorized as a public interest project, granting it a high priority in village planning.

While budget support for these tasks is encouraged, it remains sensitive to the financial capacity of each village. Villages with limited fiscal space are expected to contribute according to portions agreed upon in regency-level coordination meetings, often supplemented by regional aid.

Administrative Protocols for 2026 Budget Amendments

Since instructions for KDMP may arise after the initial 2026 APB Desa has been legalized, many villages must navigate the “Amendment Corridor.” The Ministry of Home Affairs has outlined specific steps to ensure these mid-year changes are valid:

1. Amending the RKP Desa: Because the KDMP is a strategic national interest, it must be included in the 2026 Village Government Work Plan (RKP Desa). This amendment is finalized through the Musrenbangdes (Village Development Planning Deliberation) to secure grassroots legitimacy.
2. APB Desa Refocusing: Following the RKP amendment, the village proceeds with the APB Desa change. This process requires strict assistance from the Sub-district and the Village Community Empowerment Office (DPMD) to ensure the structure remains aligned with Permendagri Number 20 of 2018.

The Appraisal Mandate: Protecting Village Assets

To prevent corruption and “mark-ups” in land transactions, the 2026 instructions mandate a strict Appraisal Standard. If a village must purchase land for a KDMP site:

• Certified Assessment: The purchase price cannot be determined by verbal negotiation. It must refer to the assessment of a certified Public Appraiser (Appraisal). This ensures the village pays a fair market price and prevents financial loss to the state.
• Audit Trail: Every step—from site selection to the final compensation payment—must be documented in the village planning files and remain open for public scrutiny.
• APIP and APH Supervision: The entire procurement process is monitored by the Internal Government Oversight Apparatus (APIP) and Law Enforcement Agencies (APH). This “escort” serves as a preventative measure to ensure that officials stay within the legal boundaries of procurement.

Tiered Coordination: The Multi-Level Synergy Flow

Village officials do not act in a vacuum. The Ministry has established a tiered coordination flow:

• Inventory and Verification: The Regency Cooperative Office (Diskop) and DPMD, together with the Camat, identify which villages have the highest urgency and land readiness.
• Regency Coordination Meeting (Rakor): Bappeda and BPKAD organize meetings involving Village Heads, BPD, and the District Military Commander (Dandim) as part of the Food Task Force. This forum decides the “budget-sharing” ratio between the regency and the village.
• Provincial Specific Financial Assistance (BKK): Selected villages may receive a BKK transfer directly from the Provincial APBD to accelerate the physical completion of KDMP buildings.

Conclusion: Data-Driven Food Sovereignty

The construction of the Red and White Village Cooperative is an integral part of the national movement to strengthen food security. Through transparent funding synergy, the village transforms from a passive observer into a vital provider of logistics infrastructure. The success of the KDMP physical construction will be a historical milestone in village economic independence, proving that villages can manage their own food systems with professionalism and dignity.