Ministry of Finance Regulation No. 108/2024: Guidelines for 2025 Village Fund Management

Introduction to the 2025 Fiscal Policy

The implementation of the Village Fund program is a strategic government initiative to improve community welfare at the local level. Ministry of Finance (MoF) Regulation Number 108 of 2024 serves as the legal cornerstone governing the allocation, utilization, and distribution of the Village Fund for the 2025 Fiscal Year. This policy is anchored in several legislative mandates, including Article 14, Paragraph (7) of Law Number 62 of 2024, which emphasizes the need for structured management and detailed fund breakdown based on performance metrics and specific incentives.

Furthermore, Article 57, Paragraph (11) of Government Regulation Number 37 of 2023 reaffirms that fund details calculated in both the previous and current fiscal years must be managed systematically. Consequently, this regulation is designed to provide clear guidance for managing these funds effectively and efficiently to achieve national development goals.

Primary Objectives and Focus of Fund Utilization

The 2025 Village Fund is prioritized to support several key sectors, including:

1. Eradication of Extreme Poverty: Allocating a maximum of 15% for Village Direct Cash Assistance (BLT Desa), primarily targeting poor families recorded in government databases.
2. Climate Change Adaptation: Strengthening villages to be more resilient and adaptive to environmental shifts.
3. Basic Health Service Improvement: Focusing on stunting reduction and the provision of other fundamental health services.
4. Food Security Support: Enhancing local food resilience programs at the village level.
5. Village Potential Development: Optimizing local competitive advantages for community progress.
6. Information and Technology Utilization: Accelerating the implementation of “Digital Villages.”
7. Labor-Intensive Public Works (Padat Karya Tunai): Utilizing local raw materials and labor to boost the rural economy.
8. Other Priority Sector Programs: Tailored to the specific needs and potential of the local community.

Priority Criteria for BLT Desa Beneficiaries

Prospective beneficiary families for BLT Desa are prioritized from poor households domiciled in the village according to data established by the government. If existing data is insufficient, the Village Head may determine beneficiaries based on the following criteria:

• Loss of primary livelihood.
• Family members suffering from chronic/long-term illness or living with disabilities.
• Not receiving assistance from the Family Hope Program (PKH).
• Households consisting of a single elderly individual.
• Female-headed households from impoverished backgrounds.

Performance Criteria and Indicators

MoF Regulation Number 108 of 2024 also establishes performance indicators that villages must fulfill regarding fund management. These indicators include:

• Transparent and accountable financial management practices.
• Achievement of Village Fund output targets as specified in the development plan.

With these regulations in place, the Village Fund is expected to be utilized optimally and accurately, particularly in addressing poverty and supporting sustainable rural expansion.

Conclusion

In its implementation, this regulation aims to ensure that the management and use of the Village Fund are conducted effectively, efficiently, and with a strong orientation toward the interests of the community. This aligns with the government’s efforts to drive poverty reduction, community empowerment, and equitable development across the archipelago.

Visit the Village Regulations page for official access.