Government Regulation Number 31 of 2026: Disability Concession Rights and Strategic Incentives for Companies 
Implementing the Account Code Updates (A.1 and A.2) for Village Financial Administration 
Formulating the Official Minutes of the Sub-District Stunting Convergence Forum 
Mastering Sessional Materials and Database Inputs for the RKP Desa Planning Deliberation 
Formulating the Village Head Decree for Amending the Cash Transfer Beneficiary Registry 
Structuring the Public Aspiration Matrix for BPD Legislative Recess Reporting 
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The fundamental basis for the enactment of Law Number 62 of 2024 concerning the 2025 National Revenue and Expenditure Budget (APBN) is that the state budget represents the management of national finances executed transparently and accountably to ensure the maximum prosperity of the people.
Furthermore, the 2025 APBN is structured according to the needs of state administration and the capacity to collect state revenue. This supports the realization of a national economy based on economic democracy, following principles of togetherness, efficiency, justice, sustainability, environmental awareness, independence, and maintaining the balance of national economic progress and unity.
Key Summary of Law No. 62/2024 for Village Administration
Below are the essential highlights of the 2025 Fiscal Year Budget specifically relevant to rural development and village governance:
- Village Fund Allocation: For the 2025 Fiscal Year, the total Village Fund (Dana Desa) is set at Rp71 trillion. This fund is designated to support village governance, community empowerment, and social development. Utilization is prioritized for extreme poverty eradication, climate change adaptation, health promotion (stunting reduction), food security, village digitalization, and labor-intensive programs (Padat Karya Tunai) using local raw materials.
- Distribution Mechanism: The Village Fund is distributed through a formula involving basic allocation, affirmation, performance, and formula-based components. Affirmation funds are targeted at disadvantaged and extremely disadvantaged villages, while performance funds reward villages with the best administrative achievements. Additionally, there is a Rp2 trillion incentive fund to encourage the implementation of central government policies at the village level.
- Fiscal Incentive Funds and Other Regional Allocations: Beyond the direct Village Fund, the budget includes Fiscal Incentive Funds awarded to local governments for high performance. These funds support national strategic goals, such as local financial management and public service improvements.
- Rural Development Priorities: The budget focuses on strategic sectors, including village infrastructure development, utilization of digital technology, food resilience, and improving the quality of life through basic public service facilities.
For a detailed breakdown of 2025 budget priorities, you can refer to the video guide provided. This aligns with the strategic frameworks discussed in our previous post regarding the priority issues for 2025 Village Fund utilization.
Conclusion
Law No. 62 of 2024 solidifies the government’s commitment to decentralization by placing the village as the frontline of national development. With a total budget of Rp71 trillion, village officials are expected to manage these resources with high integrity, ensuring that every program contributes to the long-term independence and welfare of the rural community.
Visit the Village Regulations page for official access.
