PMK Number 15 of 2026: Procedural Guidelines for Funding Merah Putih Village Cooperative Infrastructure

The enactment of PMK Number 15 of 2026 marks a new historical milestone in the government’s efforts to strengthen the economic foundation at the grassroots level through the acceleration of cooperative infrastructure development. This Minister of Finance Regulation specifically governs the procedures for distributing the General Allocation Fund (DAU), Profit Sharing Fund (DBH), and Village Funds for the physical construction of outlets, warehouses, and the essential equipment of the Red and White Village/Urban-Village Cooperatives.

This policy serves as a systematic response to provide legal certainty and clean governance guidelines for all regional and village governments in managing transfer funds to support national food security.

As a direct follow-up to Inpres Number 17 of 2025, this regulation is more than just an administrative hurdle; it is a strategic roadmap to ensure that logistics distribution in rural areas becomes significantly more efficient. Through the integration of banking finance and regional transfer fund guarantees, the government aims to create an independent economic ecosystem managed directly by local residents. The primary focus of PMK Number 15 of 2026 is to ensure that every allocated rupiah lands on time to finance sophisticated warehousing facilities, thereby minimizing price disparities for basic necessities across different regions.

In the context of village financial management in 2026, understanding this regulation is crucial for Village Secretaries, Treasurers, and urban-village officials. This is because the fund distribution mechanism will have a direct impact on the posture of the Regional Budget (APBD) and Village Budget (APB Desa) through automatic budgetary adjustments. Supported by integrated information technology, PMK Number 15 of 2026 is expected to become the engine for a more transparent and accountable village economic transformation.

Defining the Core Entities: KDMP and KKMP

Before diving into the technical distribution mechanisms, it is essential to recognize the primary legal subjects at the heart of this policy. PMK Number 15 of 2026 divides the entities based on their administrative regions. The first is the Red and White Village Cooperative (KDMP), a collective economic body whose members consist of residents living in the same village, proven by their official National Identity Cards (KTP).

The second entity is the Red and White Urban-Village Cooperative (KKMP), which shares a similar structure but operates within urban-village (Kelurahan) jurisdictions. Both types of cooperatives share a noble goal: managing outlet units and warehousing facilities built to strengthen food security and smooth logistics distribution in their respective areas. With membership based on local domicile, the government expects a strong sense of ownership from the community to maintain and develop these economic assets sustainably.

The government positions KDMP and KKMP as the front line in maintaining food supply stability at the grassroots level. With infrastructure support financed through the schemes in PMK Number 15 of 2026, these cooperatives are expected to evolve beyond being mere retailers; they are to become centers for collecting local production, stored in modern warehouses before wider distribution. This automatically adds economic value for farmers and micro-entrepreneurs within the cooperative’s environment.

The Financial Blueprint: IDR 3 Billion Limit and Low Interest

One of the most attractive points in PMK Number 15 of 2026 is the government’s boldness in setting a highly competitive financing ceiling for physical outlet construction. The execution of this construction is entrusted to PT Agrinas Pangan Nusantara (Persero), a state-owned enterprise under the Daya Anagata Nusantara Investment Management Agency. This collaboration demonstrates the integration between SOEs and regional governments in realizing village food sovereignty.

To support the physical construction, the banking sector provides financing facilities with a highly “member-friendly” scheme for the cooperatives. The technical details of this support are as follows:

• Financing Limit: A maximum of up to IDR 3,000,000,000.00 (three billion rupiah) for each KKMP or KDMP outlet unit.
• Interest Rate: Set at a flat and competitive rate of 6% per annum.
• Repayment Tenor: A long-term repayment period of up to 72 months (6 years).
• Grace Period: Cooperatives are granted a deferment on principal and interest payments for 6 to 12 months during the initial operational phase.

The primary advantage of this scheme is the future ownership status. Although the construction is financed through bank loans, the resulting outlets and warehouses will officially become assets of the Regional Government (for KKMP) or Village Government (for KDMP). This ensures that these economic facilities remain public property and do not fall into private hands in the future.

Distribution Intercepts: DAU, DBH, and Village Funds

PMK Number 15 of 2026 establishes three primary financial instruments as payment guarantees for installments to the providing banks. These instruments were chosen due to their high certainty of distribution from the state treasury to regional or village treasuries. The payment mechanism differs based on the region type and funding source.

For urban-villages (KKMP), installment payments utilize the General Allocation Fund (DAU) and Profit Sharing Fund (DBH). The distribution mechanism uses an automatic fund deduction method (intercept) by the central government before the funds reach the Regional General Treasury Account (RKUD). These installments are paid periodically every month, ensuring the regional fiscal burden remains proportional throughout the fiscal year.

In contrast, for villages (KDMP), the primary funding source is the Village Fund. However, there is a significant technical difference regarding the distribution period. While DAU/DBH is paid monthly, installment payments through the Village Fund are made in a lump sum for the entire year’s installments. This process is carried out directly from the State General Treasury Account (RKUN) to the designated bank account without passing through the village treasury first, ensuring timely payment and avoiding administrative delays at the local level.

Administrative Rigor and the Strict 12th Day Deadline

Administrative order is the lifeblood of PMK Number 15 of 2026. The government has set very strict procedures to ensure that distributed funds accurately reflect physical progress in the field. The first stage begins with a loan application from the bank to the Budget Execution Authority of the State General Treasurer (KPA BUN) at the Ministry of Finance.

In this application, the bank must attach job handover documents issued by the Minister of Cooperatives. The validity of these documents must be supported by a review from the Financial and Development Supervisory Agency (BPKP) or the internal government oversight apparatus (APIP) to ensure no physical deviations occurred during construction. The deadline for submitting this application is no later than the 12th day of the installment maturity period month. Specifically for DAU distribution in December, the application must be received by November 12.

Once the application is deemed complete, the managing KPA BUN (either the Director of General Transfer Funds or the Director of Village Funds) will perform an in-depth verification. Recommendations for distribution are provided to the Disbursement KPA BUN or the Head of KPPN within a maximum of 4 working days. This rapid processing speed demonstrates the central government’s commitment to minimizing interest burdens caused by payment delays.

Digital Accountability via OM-SPAN TKD

Article 9 of PMK Number 15 of 2026 strictly mandates the use of an electronic-based information system for all fund distribution mechanisms. This digitalization step is taken to guarantee the principles of transparency, accountability, and prudence in state financial management. With an integrated system, every fund flow—from the deduction at the state treasury to the receipt in the banking account—can be monitored directly by the relevant ministries and oversight agencies.

The appointment of treasury officials for this distribution involves various levels of authority at the Ministry of Finance. From the Director-General of Fiscal Balance at the center to the Head of KPPN in the regions, everyone holds a hierarchical responsibility to ensure transaction security. This provides protection for regional and village governments against unauthorized fund deductions outside the agreed-upon financing amounts for the Red and White Cooperative outlets.

Deregulation: Revoking the Old to Empower the New

As PMK Number 15 of 2026 comes into effect on April 1, 2026, the government has simplified regulations by revoking two old rules that previously governed similar matters. The regulations declared null and void include PMK Number 49 of 2025 regarding Village/Urban-Village Cooperative Loan Procedures, as well as PMK Number 63 of 2025 concerning the Use of Surplus Budget Balance (SAL) for Bank support.

This regulatory consolidation aims to integrate the cooperative loan distribution mechanism with the existing Regional Transfer (TKD) system. This is highly beneficial for village and regional officials as they no longer need to refer to overlapping rules. Understanding the single primary regulation in PMK Number 15 of 2026 is now sufficient to accommodate all technical procedures for outlet and warehouse construction.

Conclusion: Towards Village Economic Independence

In summary, PMK Number 15 of 2026 is far from a mere collection of bureaucratic rules; it is a vital instrument for accelerating inclusive economic development across the nation. With a financing ceiling of IDR 3 billion per outlet and a low 6% interest rate, the Red and White Cooperative is expected to truly become the engine of the local economy. Sophisticated warehousing facilities will protect village farmers from unpredictable price fluctuations.

Regional and Village Governments must immediately adapt to this regulation as its impact on the 2026 APBD and APB Desa posture is very real. Budgetary adjustments must be made based on the amount of transfer funds that will be channeled to the banks. With strong synergy between ministries, banks, and village-level governments, the vision of equitable physical development and robust food security through the Red and White Cooperative is a goal that can be achieved on time and on target.

Summary of Technical Provisions (PMK 15/2026)

Visit the Village Regulations page for official access.