Peraturan Pemerintah 16/2026 (Peraturan Pemerintah Nomor 16 Tahun 2026 tentang Peraturan Pelaksanaan Undang-Undang Nomor 6 Tahun 2014 tentang Desa) is an Indonesian government regulation that implements the Village Law, Undang-Undang 6/2014, as last amended by Undang-Undang 3/2024. It was signed by President Prabowo Subianto and promulgated on 27 March 2026, and took effect the same day.^[1][2] It governs village government, finance and development and is part of the law described at public administration in Indonesia.

The regulation replaced Peraturan Pemerintah 43/2014, the first implementing regulation of the Village Law, together with its amendments of 2015 and 2019. In 188 articles and seventeen chapters it covers the arrangement of villages, their authority, village government and elections of village heads, village regulations, village finance and assets, conservation and rehabilitation funds, village development, cooperation between villages, community and customary institutions, the recognition of customary law communities, supervision by sub-district heads, and village infrastructure.^[3][4] Its elucidation lists the matters added to carry out the 2024 amendment of the Village Law, among them eight-year planning periods, retirement benefits for village officials, single-candidate elections and the conservation and rehabilitation funds.^[5] CRPG's regulatory tracker published an analysis of the regulation in June 2026.^[6]

¶ Background

The considerations present the regulation as a simplification meant to make village government, development, community guidance and community empowerment more effective and efficient, and list the provisions of the Village Law, as amended by Undang-Undang 3/2024, that it implements, among them Pasal 26 ayat (3) huruf d, Pasal 50 ayat (2), Pasal 72 ayat (5), Pasal 75 ayat (3), Pasal 79 ayat (5) and Pasal 118 huruf f.^[7] It is issued under Pasal 5 ayat (2) of the 1945 Constitution.^[7:1]

According to the general elucidation, the regulation also deals with matters not required by the 2024 amendment, including a fixed income for village officials paid every month and raised every two years, the confirmation of village boundaries, a village information system, cooperation between villages, and the recognition and protection of customary law communities.^[5:1]

¶ Village government

Pasal 1 defines a village (desa) as a legal community unit with territorial boundaries that is authorised to regulate and manage government affairs and the interests of the local community on the basis of community initiative, rights of origin or traditional rights recognised in the Indonesian state.^[8] A village head holds office for eight years from inauguration and may serve at most two terms, consecutively or not, and members of the village consultative body (Badan Permusyawaratan Desa, BPD) also serve eight-year terms.^[9][10]

Village head elections are held simultaneously throughout a regency or city, in no more than four waves over eight years, and the regent or mayor appoints a civil servant as acting head where a post falls vacant; the costs are borne by the regency or city budget.^[11] Where the death, permanent incapacity, withdrawal or disqualification of candidates leaves a single candidate, the election proceeds with that candidate.^[12] The elucidation to Pasal 45 describes disqualification as including being caught in the act of a crime such as corruption or drug offences, or engaging in vote buying.^[12:1]

Under the transitional provisions, village officials who are civil servants may choose within two years to remain village officials, in which case they must resign from the civil service, and the existing fixed income of village heads and officials continues for up to two years.^[13]

¶ Village finance

Village revenue comes from the village's own revenue, allocations from the state budget, a share of regency and city taxes and levies, the village fund allocation (Alokasi Dana Desa, ADD), financial assistance from provincial and regency budgets, grants from third parties, and other lawful revenue.^[14] The state budget allocates the village fund (Dana Desa) each year, transferred from the state treasury account to the regional treasury account and on to the village treasury account at the same time. Each regency or city must budget an ADD of at least 10 per cent of the general allocation fund and revenue-sharing fund it receives, after deducting earmarked portions, and the minister of finance may withhold or cut transfers to a regency or city that fails to do so.^[15] These transfers form part of the system of public finance in Indonesia.

Pasal 121 requires at least 70 per cent of village spending to fund village government (including operating costs and incentives for neighbourhood associations), development, community guidance and community empowerment, and caps at 30 per cent the spending on the fixed income, allowances, retirement benefits and social security of the village head and officials and on the allowances and operating costs of the BPD. The cap may be exceeded for a national strategic programme with the approval of the regent or mayor, and income from village-held tanah bengkok (land assigned to village officials) is excluded from the calculation and may be used for additional allowances.^[16]

The draft village budget regulation must be agreed by the village head and the BPD by October, submitted to the regent or mayor through the sub-district head within three working days for evaluation, and enacted by 31 December.^[17] Governors and regents must inform villages of planned financial assistance and allocations within ten working days of agreeing their own budget priorities with the regional legislature.^[18] The village head reports on budget execution to the regent or mayor every month, electronically, by the twentieth of the following month, and the regent or mayor consolidates the reports for the minister of home affairs by the twenty-fifth.^[19]

¶ Conservation and rehabilitation funds

Chapter VIII entitles villages in or bordering nature reserves, nature conservation areas, production forests or production plantations, which carry out conservation of living natural resources and their ecosystems or forest and land rehabilitation, to a conservation fund (Dana Konservasi) or rehabilitation fund (Dana Rehabilitasi).^[20] The funds may come from the state budget, drawn from non-tax revenue from forestry resources; from provincial shares of forestry revenue-sharing, including the reforestation fund; and from other lawful sources such as environmental funds managed by a public service agency, trust funds for conservation, and assistance from companies located in conservation areas.^[21] They are to be used for purposes that include empowering communities around conservation areas.^[22] The provisions connect village finance with forestry and land use regulation.

¶ Development planning and repeal

Village development is planned through an eight-year medium-term plan (RPJM Desa) and an annual government work plan (RKP Desa) derived from it.^[8:1][23] Pasal 186 provides that the first simultaneous village head elections are held under the regulation, and Pasal 187 revokes Peraturan Pemerintah 43/2014 as last amended by Peraturan Pemerintah 11/2019.^[3:1]

¶ External links

• PP No. 16 Tahun 2026 (JDIH BPK)
• CRPG: Village Governance and Budget Rules Under the Village Law: PP 16/2026 (crpg.id, 6 June 2026) (free sign-in required on crpg.id)

¶ References