Indonesia Expands Village Development Partnerships Beyond State Budget

RRI.CO.ID, Bandung - Minister of Villages and Development of Disadvantaged Regions, Yandri Susanto, has encouraged village governments to expand partnerships and tap funding sources beyond the national budget to accelerate rural development. He made the statement while briefing 205 village heads from Merangin Regency, Jambi, during a leadership retreat at the Siliwangi Military Command Training Regiment in Bandung on Monday August 24, 2026.

He said the Ministry of Villages and Development of Disadvantaged Regions is continuing to work with various stakeholders to strengthen village development and improve local economic opportunities. He emphasized that collaboration with domestic and international partners can help villages develop their human resources and economic potential.

One of the ministry’s partnerships is with Japan’s Hakko Fukushikai Foundation to improve village human resources through scholarship opportunities for young people. “We have the Youth Build Villages, Build Indonesia program, and this is an opportunity for young people from Merangin Regency,” Yandri said.

The ministry is also seeking to strengthen Village-Owned Enterprises, or BUMDes, through cooperation with China-based New Hope Fintech. The partnership is expected to provide assistance and empowerment through technology to help village businesses become more productive and competitive.

He also encouraged villages to develop export-oriented businesses based on their respective local potential through the ministry’s Build Villages, Build Indonesia priority program. “We have currently prepared 49 export destination countries,” he said, urging village governments to identify products that can compete in international markets.

Village governments in Merangin were also encouraged to develop thematic food-security villages based on local resources and production capabilities. Yandri said the initiative could support the government’s Free Nutritious Meals program by supplying the raw materials needed for its implementation.

“The demand for raw materials for the Free Nutritious Meals program is very large, so this can be a good economic opportunity,” Yandri said. He added that stronger village-level food production could simultaneously create new income opportunities for rural communities.

Yandri also called on village heads to support the Red and White Village Cooperative program, as well as the Integrated Green Economy and Food Self-Sufficiency Program, known as Sehati, which is being developed in cooperation with the World Bank. “The program will target 7,000 to 10,000 villages, with each village potentially receiving assistance of up to 2.5 billion rupiah,” he said.

The minister urged village heads in Merangin to prepare strong proposals based on their local potential so they can benefit from the programs. The briefing was followed by a discussion in which village heads sought further information about the Red and White Village Cooperatives and the Village Export program, highlighting growing interest in expanding rural economic opportunities.