Regulation of the Minister of Finance Number 15 of 2026 Amends the Financing Mechanism for Merah Putih Village/Sub-District Cooperatives through Deductions from Regional Transfer Fund Disbursements

Introduction

On April 1, 2026, the Ministry of Finance (“MOF”) issued Regulation of the Minister of Finance Number 15 of 2026 on Procedures for the Disbursement of the General Allocation Fund/Revenue Sharing Fund or Village Fund to Support the Acceleration of the Physical Construction of Outlets, Warehouses, and Facilities of Merah Putih Village/Sub-District Cooperatives (“MOF Regulation 15/2026”). MOF Regulation 15/2026 governs the mechanism for the disbursement of regional transfer funds to pay financing obligations arising from the execution of physical construction projects for Merah Putih Village/Sub-District Cooperatives (Koperasi Desa/Kelurahan Merah Putih, “KDMP/KKMP”).

The Government enacted MOF Regulation 15/2026 to implement Presidential Instruction Number 17 of 2025 regarding the acceleration of the physical construction of outlets, warehouses, and facilities of Merah Putih Village/Sub-District Cooperatives at the village and sub-district levels. In its implementation, transfer funds in the form of the General Allocation Fund (Dana Alokasi Umum, “DAU”), Revenue Sharing Fund (Dana Bagi Hasil, “DBH”), and Village Fund (Dana Desa) are utilized to pay obligations arising from these activities, including the payment of financing to banks. Through this scheme, the payment of obligations is conducted in an orderly manner and in accordance with statutory provisions.

Comparison

MOF Regulation 15/2026 alters the funding mechanism for KDMP/KKMP and simultaneously repeals the provisions of and invalidates:

1. Regulation of the Minister of Finance Number 49 of 2025 on Loan Procedures to Support the Funding of Merah Putih Village/Sub-District Cooperatives (“MOF Regulation 49/2025”); and

2. Regulation of the Minister of Finance Number 63 of 2025 on the Utilization of the Excess Budget Balance in Fiscal Year 2025 for the Provision of Support to Banks Disbursing Loans to Merah Putih Village/Sub-District Cooperatives (“MOF Regulation 63/2025”).

The following outlines the comparison between MOF Regulation 15/2026 and MOF Regulation 49/2025 and MOF Regulation 63/2025:

Key Provisions

Definitions and Construction Financing Scheme

Article 1 and Article 2 paragraphs (1) and (2) stipulate that Government Banks disburse direct financing to PT Agrinas Pangan Nusantara (Persero) for the physical construction of cooperative outlets, warehouses, and facilities. The financing scheme encompasses:

1. A maximum ceiling of Rp3,000,000,000.00 (three billion rupiah) for each KKMP/KDMP outlet unit;

2. An interest rate, margin, or profit-sharing rate of 6% (six percent) per annum;

3. A financing tenure of 72 (seventy-two) months; and

4. A grace period of 6 (six) to a maximum of 12 (twelve) months for principal and interest/margin installment payments.

Joint Cooperative Provisions and Asset Ownership

Article 2 paragraphs (3), (5), and (6) set forth the provisions on the financing scheme and asset ownership. The Government stipulates changes to the interest rate or grace period through a Decree of the Minister of Finance. The applicable provisions include:

1. The maximum financing limit per outlet unit remains applicable to KKMP/KDMP formed by multiple Sub-Districts/Villages; and

2. Completed outlets, warehouses, and facilities become assets owned by the Regional Government or Village Government, not PT Agrinas.

Installment Payment Mechanism and Disbursement Principles

Installment payments are conducted based on the principles of transparency, accountability, prudence, and performance (performance-based) as stipulated in Article 2 paragraph (4) and Article 3. The payment mechanism is executed as follows:

1. KKMP Financing (Sub-Districts): The Government deducts DAU/DBH disbursements monthly for installment payments; and

2. KDMP Financing (Villages): The Government disburses the Village Fund to pay installments in a lump sum within the current year.

Division of Authority of Treasury Officials

The Minister of Finance, acting as the State General Treasurer Budget User (Pengguna Anggaran Bendahara Umum Negara, “PA BUN”), appoints officials as Proxy of the State General Treasurer Budget User (Kuasa Pengguna Anggaran, “KPA BUN”) to manage the disbursement of transfer funds as set forth in Article 4. Disbursement authority is divided as follows in accordance with Article 4 paragraph (2):

1. DAU/DBH Disbursement: The Head of the State Treasury Service Office (Kantor Pelayanan Perbendaharaan Negara, “KPPN”) whose working area covers the recipient regency/city executes the disbursement; and

2. Village Fund Disbursement: The Head of KPPN Jakarta I executes the disbursement of the Village Fund.

Release of Legal Liability for State Officials

The Head of the Regional Transfer Management PA BUN, the managing KPA BUN, the disbursing KPA BUN, and the disbursement coordinator bear no formal or material liability for the on-site execution of the accelerated cooperative physical construction activities. Their responsibility is limited to the financial disbursement administration.

Application Submission Requirements for Banks

Article 6 paragraphs (1), (2), and (5) stipulate the application submission requirements for Banks. Banks are responsible for the accuracy of the submitted invoices. Fund disbursement applications to the KPA BUN are submitted after the Bank receives the following documents:

1. Work handover documents from the Minister of Cooperatives; and

2. Proof of review of the aforementioned work handover documents from the Finance and Development Supervisory Agency (Badan Pengawasan Keuangan dan Pembangunan, “BPKP”) and/or the government internal supervisory apparatus of ministries/agencies/regional governments, guided by the Finance and Development Supervisory Agency.

Deadlines for Disbursement Application Submissions and Recommendations

Banks submit disbursement applications in accordance with the deadlines set forth in Article 6 paragraphs (7) through (9) and Article 7. The provisions are as follows:

1. Banks submit applications no later than the 12th of the installment due date month;

2. If the 12th is a public holiday, Banks submit applications on the subsequent working day;

3. For the disbursement of DAU installments in December, Banks submit applications no later than November 12; and

4. The Managing KPA BUN issues a disbursement recommendation no later than 4 (four) working days from the receipt of the application letter.

Details of Letter Formats and Annex Documents

Article 6 paragraph (3) in conjunction with the Annexes stipulates the use of the application letter format by Banks. Fund disbursement applications contain the following data:

1. The disbursed fund amount, including details of the principal and interest/margin installments;

2. The collection account number and name, as well as the identity of the letter signatory;

3. An annex table containing the Sub-District/Village code and name, alongside the cooperative's registry number and name; and

4. For 1 (one) KDMP owned by more than one Village, Banks list the disbursement amount for each Village as stipulated in Article 6 paragraph (10).

Disbursement Deductions, Budgetary Implications, and Digitalization

The KPA BUN executes DAU/DBH disbursement deductions before the funds enter the Regional General Treasury Account (Rekening Kas Umum Daerah, “RKUD”) or disburses the Village Fund directly from the state treasury account to the Bank's collection account as stipulated in Article 8. Regional Governments and Village Governments adjust their Regional Budgets (Anggaran Pendapatan dan Belanja Daerah, “APBD”) and Village Budgets (Anggaran Pendapatan dan Belanja Desa, “APB Desa”) based on the disbursement amount in accordance with Article 8 paragraph (3), and the fund disbursement is carried out through an electronic-based information system and recorded in accordance with accounting and reporting provisions as set forth in Article 9 and Article 10.

Closing

MOF Regulation 15/2026 changes the funding mechanism for Merah Putih Village/Sub-District Cooperatives from a direct loan scheme to a scheme in which Banks disburse financing to PT Agrinas Pangan Nusantara (Persero) for the physical construction of cooperative outlets, warehouses, and facilities. The financing has a maximum limit of Rp3,000,000,000.00 per unit, an interest or margin rate of 6% per annum, a tenure of 72 months, and a grace period of 6 to 12 months. Payments are made through deductions from regional transfer fund disbursements: DAU/DBH for sub-districts and the Village Fund for villages, before funds are transferred to the regional treasury. MOF Regulation 15/2026 simultaneously repeals the provisions of Regulations 49/2025 and 63/2025. Banks submit fund disbursement applications based on work handover documents reviewed by the Finance and Development Supervisory Agency or the relevant government internal supervisory apparatus, and comply with the established formats and deadlines. Regional and Village Governments adjust their APBD and APB Desa based on the disbursement amounts, ensuring payments are recorded and administered in accordance with statutory provisions.