The highly anticipated Village Law Revision was officially enacted on April 25, 2024, as Law Number 3 of 2024. This serves as the second amendment to Law Number 6 of 2014 concerning Villages.

The primary rationale for this amendment includes the recognition of traditional rights, the need for village empowerment toward independence, and the necessity to adapt legal frameworks to modern socio-political dynamics.

Key Provisions and Amendments

1. Conservation and Rehabilitation Funds (Article 5A)

Villages located within nature reserves, production forests, or plantation areas are now legally entitled to conservation and/or rehabilitation funds. The specific technical implementation will be further regulated by a Government Regulation (PP).

2. Post-Term Benefits (Articles 26, 50A, & 62)

A new provision grants a one-time post-term benefit (tunjangan purnatugas) for Village Heads, BPD members, and Village Apparatus at the end of their service, subject to the village’s financial capacity.

3. Village Head Elections (Article 34A)

Specific protocols are set for single-candidate elections:

• A minimum of 2 candidates is required.
• If only 1 candidate registers, the period is extended (15 days, then an additional 10 days).
• If only one candidate remains after extensions, the candidate is appointed through consensus (musyawarah untuk mufakat) between the Election Committee and the BPD.

4. Extended Terms of Office (Article 39)

The term of office for a Village Head is increased to 8 (eight) years per term. A Village Head can serve a maximum of 2 (two) terms, whether consecutive or non-consecutive.

5. Revised Revenue Sources (Article 72)

The sources of Village Income now follow a more structured allocation:

• Village Original Income (PADes): Business results, assets, and community participation.
• State Budget Allocation (Dana Desa): Centrally transferred funds.
• Regional Tax Sharing: At least 10% of local regional taxes/retributions.
• Village Fund Allocation (ADD): At least 10% of the DAU and Revenue Sharing Funds received by the Regency/City.

6. Transitional Provisions (Article 118)

Crucial rules for currently serving officials:

• Officials who have served 2 terms prior to this law can run for 1 additional term.
• Officials currently in their 1st or 2nd term will complete their term according to the new 8-year rule and can run for one more term.
• Village Heads whose terms expired in February 2024 are eligible for extension under this law.

7. Oversight and Monitoring (Article 121A)

The Government is mandated to report the implementation of this Law to the DPR RI no later than 3 years after its enactment.

Conclusion

Law Number 3 of 2024 brings significant changes to the administrative and financial landscape of Indonesian villages. With longer terms and clearer funding mandates, villages are expected to be more stable and capable of driving long-term development in line with the Village SDGs.

Visit the Village Regulations page for official access.