Village Funds of Rp 71 Trillion Unaffected by Budget Cuts, Says Minister Yandri Susanto
Jakarta. Village and Underdeveloped Region Development Minister Yandri Susanto confirmed that the Rp 71 trillion ($4.36 billion) allocated for 75,000 villages this year will not be impacted by government budget cuts.
Yandri made this statement after signing a Memorandum of Understanding (MoU) for a partnership program on food security and free nutritious meals between the Ministry, the National Nutrition Agency, the Indonesian Army, and other relevant ministries on Monday. He expressed confidence that village and regional development programs would continue without disruption, despite the government's budget efficiency policy.
"Praise be to God, the village funds of Rp 71 trillion will not experience any cuts. The efficiency measures in the Ministry will not affect its performance," Yandri said on Monday.
The government plans to maximize the use of village funds through collaboration with various ministries and agencies. Yandri stressed that village development is a priority that requires cross-sector cooperation, as over 75,000 villages across Indonesia face challenges that need to be addressed together.
Additionally, Yandri highlighted the importance of working with the Indonesian Army, particularly with the Village Supervisory Officers stationed in the villages, to strengthen village development, especially in food security. The goal is for at least 20 percent of the village funds to be allocated toward food security.
The Village Ministry is also working with the National Nutrition Agency to support the free nutritious meals program, a priority of President Prabowo Subianto. This initiative aims to boost the village economy by involving Village-Owned Enterprises in providing food ingredients, while ensuring the nutritional needs of local communities are met.
The 2025 state budget has been trimmed by Rp 306.69 trillion, including a Rp 256.1 trillion reduction in ministry and agency budgets and Rp 50.59 trillion in regional transfers.
A portion of the savings will fund the nutritious meals program, which has an estimated budget of Rp 375 trillion through the end of Prabowo's administration.
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