PMK Number 81 of 2025 – Management of Village Funds for the 2025 Fiscal Year

The PMK Number 81 of 2025 is the latest regulation issued by the Minister of Finance, which revises PMK Number 108 of 2024. This pivotal amendment aims to enhance the effectiveness of the 2025 Village Fund disbursement. Crucially, the regulation explicitly adds significant requirements for Phase II disbursement: Villages must attach either the deed of establishment for the Village/Sub-district Red and White Cooperative legal entity or proof of submission to a notary, along with a commitment statement letter supporting it from the Village Budget (APBDes).

Furthermore, this PMK sets a strict deadline of September 17, 2025, for the completion of Phase II requirements. Failing to meet this deadline will result in the undesignated Village Funds (non-specific allocation) being postponed and not recirculated, while the designated funds will be postponed. Explore the detailed changes in disbursement, the use of the OM-SPAN TKD application, and the consequences of Village Fund postponement for 2025 here.

PMK Number 81 of 2025 was officially enacted by the Minister of Finance of the Republic of Indonesia on November 19, 2025, and promulgated on November 25, 2025. This regulation constitutes a substantial amendment to the Minister of Finance Regulation (PMK) Number 108 of 2024 concerning the Allocation, Use, and Disbursement of Village Funds for Each Village for the 2025 Fiscal Year.

The main rationale behind the enactment of this new regulation is to improve the effectiveness of the governance framework for the 2025 Village Fund disbursement. This improved effectiveness is integrated with the strategic policy of the President of the Republic of Indonesia to support the formation of the Red and White Village/Sub-district Cooperative. Thus, PMK Number 81 of 2025 is not merely an administrative adjustment but a fiscal instrument that links the disbursement of the Village Fund with community-based economic initiatives at the village level.

The crucial changes in PMK 81 of 2025 focus on the addition of Phase II Village Fund disbursement requirements, which were previously regulated in PMK 108 of 2024. In addition to adding requirements, this regulation also introduces two highly important new articles, namely Article 29A and Article 29B, which regulate the sample format for the APBDes support commitment and the mechanism for the postponement of Phase II Village Fund disbursement. A deep understanding of these changes is key for Regional Governments, especially the Regent/Mayor, and Village officials, to ensure that the 2025 Village Fund disbursement process runs smoothly and meets the established targets.

The Government, through the Ministry of Finance, is committed to ensuring that the Village Fund delivers a maximum impact on village development and community empowerment. The linkage between fund disbursement and the formation of cooperatives signals a new focus on developing Cooperative Legal Entities at the village/sub-district level as an economic pillar. Therefore, all stakeholders must immediately adjust their village planning and administration in accordance with the new provisions outlined in this PMK.

Key Changes to Phase II Village Fund Disbursement Requirements

In accordance with Article I item 1, PMK Number 81 of 2025 amends the provisions of paragraph (3) of Article 24 of the previous PMK, which specifically regulates the requirements for the disbursement of designated Village Funds. The most prominent change is in the requirements for Phase II disbursement, which amounts to 40% (forty percent) of the Village Fund ceiling. Villages wishing to receive the Phase II allocation must meet physical realization and fund absorption requirements, plus two new administrative requirements directly related to the Red and White Village/Sub-district Cooperative.

In detail, the addition of the two mandatory requirements for Phase II disbursement are:

1. Deed of Cooperative Legal Entity Establishment or Proof of Submission: The Deed of establishment of the Village/Sub-district Red and White Cooperative legal entity is required. If the deed has not yet been issued, it can be substituted with proof of submission of the Red and White Village/Sub-district Cooperative formation documents to a notary. This demonstrates the Village’s commitment to the legal and institutional aspects of the economy.
2. Statement Letter of APBDes Support Commitment: The Village must attach a statement letter committing to support the formation of the Red and White Village/Sub-district Cooperative through the Village Revenue and Expenditure Budget (APBDes). This commitment, as explained in the PMK Appendix, states that the support will be budgeted for in the Village Regulation on the Revised APBDes or the Village Head Regulation on the Elaboration of the Revised APBDes.

Other mandatory requirements for Phase II remain in effect, namely the realization report of Phase I Village Fund absorption and output achievement, which must show an absorption realization of at least 60% and an average output achievement of at least 40%. The addition of the cooperative requirement is a tangible implementation of the President’s policy to link fund disbursement with economic empowerment efforts through cooperatives. The budget user authority for the State Treasury General, responsible for the disbursement of Village Funds, incentives, special autonomy, and special status, will only execute the disbursement after receiving all requirements completely and correctly from the Regent/Mayor.

Strict Deadline and Consequences of Phase II Village Fund Disbursement Postponement

PMK Number 81 of 2025 introduces a crucial new provision related to the deadline and consequences of Phase II Village Fund disbursement postponement through the insertion of Article 29B. This article clarifies when Phase II Village Funds will be postponed and how they will be handled if requirements are not met on time. The final deadline for submitting complete and correct Phase II disbursement requirements is strictly set at September 17, 2025. Passing this date will result in the postponement of Phase II Village Fund disbursement.

This disbursement postponement covers two main components of the Phase II Village Fund: the designated Village Funds (such as Village BLT, stunting handling, and food security) and the undesignated Village Funds (such as non-specific allocations). However, the treatment for these two components is vastly different. The designated Phase II Village Funds still have a chance to be recirculated after the Regent/Mayor submits all requirements completely and correctly, even if it is past September 17, 2025, as long as it is within the further disbursement deadline.

On the other hand, the undesignated Phase II Village Funds face a much more serious consequence. If the disbursement requirements are late and pass the September 17, 2025 deadline, this fund component will not be disbursed at all. The undisbursed funds may be reallocated to support government priorities or for fiscal control, the determination of which is made through a Minister of Finance Decree. If, by the end of the current fiscal year, these funds are not used to support government priorities, they will become remaining Village Funds in the State General Cash Account (RKUN) and will not be disbursed again in the following fiscal year. This provision indicates a mechanism of strict fiscal sanctions to encourage timely submission of requirements.

Optimizing the Role of Regional Governments through the OM-SPAN TKD Application

This regulation also strengthens the role of Regional Governments, in this case, the Regent/Mayor, in the administrative and disbursement process of the Village Fund, especially through the utilization of the OM-SPAN TKD Application. PMK 81 of 2025 explicitly regulates that the Phase II Village Fund disbursement requirements in the form of realization reports of fund absorption and output achievement from the previous fiscal year and Phase I are processed and generated integrally through the OM-SPAN TKD Application. This signifies a transition towards a more digital, centralized, and real-time governance of the Village Fund.

In addition to ensuring that the Village has submitted Phase I requirements (APBDes, power of attorney, and determination of Village BLT), the Regent/Mayor also has the obligation to perform several critical data recordings via OM-SPAN TKD. These data recordings include the ceiling for designated Village Funds, including recording the number of Village BLT beneficiary families. Furthermore, realization data for Village Funds for food security, animal husbandry, and stunting handling for the 2024 fiscal year must also be recorded by the Regent/Mayor.

Moreover, in the process of applying for disbursement, the Regent/Mayor is tasked with marking the disbursement application for eligible Villages, accompanied by a detailed list of Villages, for both Phase I and Phase II, through the OM-SPAN TKD Application. Recording the realization of the number of Village BLT beneficiary families for Phase II for a minimum of 3 (three) months is also the responsibility of the Regent/Mayor, carried out through the application. The use of this application aims to simplify bureaucracy, reduce the potential for manual data errors, and ensure transparent and accurate data for the Budget User Authority for the State Treasury General.

Technical Regulations for APBDes and Commitment to Cooperative Formation

PMK 81 of 2025 also provides clarification on the format and mechanism for submitting the APBDes, and ensures the Village’s commitment to supporting the formation of the Red and White Village/Sub-district Cooperative. The APBDes for Phase I requirements must consist of two types of documents: a Village regulation regarding APBDes in a portable document format scan and a computer data archive generated from the electronic-based village financial management application. For Villages that do not yet use an electronic application, manual recording of the APBDes is possible through an application provided by the ministry responsible for finance.

Interestingly, Villages that do not budget for the designated Village Funds (or only partially) still have a double obligation. These Villages must still submit the APBDes for Phase I, and most importantly, they are still required to submit the Phase II disbursement requirements related to the cooperative, namely the deed of establishment/proof of cooperative submission and the statement letter of APBDes support commitment. This indicates that the initiative for forming the Red and White Village/Sub-district Cooperative is a mandatory national priority, regardless of the specific Village Fund allocation for other programs.

Article 29A, a new insertion, directs readers to the Appendix of the regulation, which contains a sample format for the Statement Letter of APBDes Support Commitment. This format provides a standard guideline for Villages, which must include the identity of the Village Head and two main statements. These statements are the commitment to support the formation of the cooperative through the APBDes, and the commitment that this support will be budgeted for in the Village Regulation on the Revised APBDes or the Village Head Regulation on the Elaboration of the Revised APBDes. This clear format minimizes document variation and speeds up the verification process at the Regency/City level.

Transitional Provisions and Abrogation of Previous Regulations

PMK Number 81 of 2025 also regulates transitional and abrogation provisions to ensure a smooth transition from the previous regulations. Article II item 1 explains that the Phase II Village Fund disbursement requirements related to cooperatives (deed of establishment/proof of submission and commitment statement letter) that have been submitted and received by the Budget User Authority before this new PMK takes effect will still be processed in accordance with the provisions in PMK 81 of 2025. This provides legal certainty for Villages that have been proactive in fulfilling the cooperative formation requirements before this regulation was promulgated.

Furthermore, this PMK explicitly revokes several articles from older Minister of Finance Regulations. Article II item 2 states that the provisions regarding the disbursement of undesignated Phase II Village Funds, as regulated in Article 22 and Article 23 of Minister of Finance Regulation Number 145 of 2023 concerning Village Fund Management, are revoked and declared no longer applicable. This revocation aligns with the new provisions in Article 29B of PMK 81 of 2025, which now regulates the postponement and potential non-disbursement of undesignated Phase II Village Funds if the September 17, 2025 deadline is missed.

Thus, PMK Number 81 of 2025 not only amends PMK 108 of 2024 but also serves as the latest legal basis replacing several provisions related to the non-specific disbursement of Village Funds from PMK 145 of 2023. This regulation takes effect on the date of its promulgation, November 25, 2025. All Regional Governments and Villages are instructed to immediately disseminate and implement these provisions to avoid administrative obstacles that could lead to the postponement of much-needed funds for the Villages.

Visit the Village Regulations page for official access.