Jakarta, October 7, 2025 – The Europe Today: The World Bank has pledged US$800 million to support Indonesia’s initiative to upgrade 15,000 developed villages into independent ones, the Ministry of Villages, Development of Disadvantaged Regions, and Transmigration announced on Monday.
Minister Yandri Susanto stated that the funding, equivalent to about Rp550 million (US$32,000) per village, targets 15,000 of Indonesia’s 23,000 developed villages.
“We will shift villages from developed to independent. There are currently 23,000 developed villages, and we aim to elevate 15,000 of them,” Susanto told reporters.
The Minister explained that the World Bank’s involvement was sought due to limited state budget resources, adding that the Bank had expressed readiness to support the initiative, pending further technical discussions.
Following Monday’s meeting, the government expressed optimism that the collaboration between the Ministry and the World Bank would commence in early 2026 and continue for five years, provided there are no major obstacles.
According to Susanto, the funding will support key ministerial programs focused on food self-sufficiency, green economy development, and thematic village initiatives designed to promote local production centers.
“For example, the thematic villages and production hubs we have built will also help prepare raw materials for the free nutritious meals (MBG) program, followed by the Merah Putih village cooperative initiative,” he explained.
He emphasized that the broader goal of the project is to create a sustainable rural economy by empowering communities, strengthening local production, and supporting community-based enterprises.
The meeting also involved National Development Planning Agency (Bappenas) head Rachmat Pambudy, who discussed aligning the project with national strategic programs.
“All national strategic programs implemented by ministries and institutions must start and end at Bappenas to ensure they are properly registered and coordinated,” Susanto added.
The initiative marks a major step in Indonesia’s ongoing efforts to reduce regional disparities and strengthen rural resilience through inclusive and sustainable village development.
