Government Ensures Unhindered Financing for Merah Putih Village Cooperatives

Jakarta – Minister of Cooperatives Ferry Juliantono confirmed the readiness of funds and regulations ahead of the start of operations of 1,000 Merah Putih Village/Sub-District Cooperatives (Kopdes/Kel) next week. This program is said to be entering a crucial phase, particularly in determining the financing scheme and mechanism that will support cooperative operations throughout Indonesia.

“We are ready; we just need to inspect the land for the construction of warehouses and outlets. After that, the Merah Putih Kopdes will be up and running,” said Ferry.

Ferry explained that financial support for the Merah Putih Kopdes has been strengthened by the introduction of important regulations. With these regulations, the government ensures there are no more administrative obstacles that could disrupt the progress of this strategic program.

“The 1,000 cooperatives have submitted proposals and are just awaiting the disbursement process,” Ferry added.

He emphasized that funds from the Himbara bank with a ceiling of IDR 3 billion per cooperative have been prepared. This scheme provides certainty for cooperative administrators to immediately get businesses moving in villages and sub-districts.

Ferry also acknowledged that there were previously obstacles related to the requirement for special village deliberations (musdesus) and approval from the regional head. However, the latest regulation from the Minister of Villages states that musdesus can be held simultaneously, so this is no longer an obstacle. Similarly, the requirement for regional head approval has now been removed.

“In fact, the requirement for regional head approval is no longer there. The Minister of Finance and Danantara have agreed,” he emphasized.

The loan funds for the Red and White Village Cooperatives (Kopdes Merah Putih) are not only directed at working capital, but also include investment in the construction of warehouses and outlets. To accelerate implementation, the Ministry of Cooperatives and the Indonesian Bank Himbara (State-Owned Enterprises) will provide training and mentoring for cooperative administrators.

“The most important thing is to change the mindset of village communities; they are no longer objects or beneficiaries. Instead, with the existence of Kopdeskel, they become subjects or entrepreneurs in their respective villages,” Ferry emphasized.

Meanwhile, Coordinating Minister for Food Affairs Zulkifli Hasan added that there are already 20,000 Red and White Village Cooperatives with complete data and financial support ready for distribution. The rollout will begin with 1,000 cooperatives next week.

“Making the Red and White Kopdes program a success is the responsibility of all ministries and institutions, including the support of the Indonesian House of Representatives (DPR RI), not just the Ministry of Cooperatives and SMEs,” he said.

With guaranteed funding and regulatory support, the government is ensuring the smooth and unimpeded running of the Red and White Kopdes program. This program is expected to be a major driver of the village economy while strengthening community independence.

[w.R]