By: Rivka Mayangsari *)
In a major step to revive the people’s economy and strengthen the financial foundation from the village level, the Financial Services Authority (OJK) has expressed its support for the plan to establish 80,000 Red and White Village Cooperatives initiated by the government. Chairman of the OJK Board of Commissioners, Mahendra Siregar, said that the presence of this cooperative is an important strategy in opening access to financing which has so far been the main obstacle for Micro, Small and Medium Enterprises (MSMEs) in various parts of the country.
He said that OJK welcomed this grand plan because it is believed that it will increase financial inclusion and help equalize national economic growth. According to Mahendra, this cooperative can be a concrete solution in strengthening the MSME ecosystem so that it continues to grow sustainably.
In addition, Mahendra also emphasized that his party will monitor the implementation of this program carefully, and continue to encourage implementing banks to prioritize the principles of risk management and good financial governance, so that financing distribution can really reach the main target. OJK is also said to be ready to provide further support for other important aspects for the smooth running and success of this program.
The program to establish 80,000 village cooperatives is part of President Prabowo Subianto’s strategic vision in building economic independence at the grassroots level. The government has shown its seriousness in realizing this through the issuance of Presidential Instruction Number 9 of 2025 which encourages the acceleration of the realization of these cooperatives throughout Indonesia.
In the policy, one of the sources of funding for cooperatives is determined to come from village funds allocated in the APBN. In addition, the President is also known to have asked the Minister of SOEs Erick Thohir to direct the State Bank Association (Himbara) consisting of BRI, Mandiri, BNI, and BTN to support cooperative funding, especially in the aspect of basic infrastructure development such as buildings, water channels, electricity, and roads.
Prabowo also asked that Bank Himbara also distribute the People’s Business Credit (KUR) program as working capital for cooperatives and act as a party that collects financing obligations. In addition to financial support, the President has also instructed the Ministry of Finance to provide operational subsidies, and the Ministry of Cooperatives to provide important data to support the smooth running of this program.
Deputy Minister of Villages and Development of Disadvantaged Regions, Ahmad Riza Patria, said that the government will rely on loans from state-owned banks that are members of Himbara to fund this cooperative program. According to him, the funds needed for each cooperative range from IDR 2 to IDR 3 billion, with a loan tenor designed so as not to burden the state’s fiscal, namely for 10 to 15 years.
He explained that the loan installments will be paid through village funds that have been regulated in the APBN. The government chose this long-term scheme so that the burden on the APBN remains light and sustainable. Meanwhile, the General Chairperson of the Nusantara Awakening Party (PKN), Sudaryono, said that the government is still reviewing the joint financing scheme with Himbara to ensure its effectiveness.
Minister of Cooperatives and SMEs, Budi Arie Setiadi, estimated that the establishment of the Red and White Cooperative would require a total budget of Rp400 trillion. He explained that each village would later receive Rp5 billion in funds for cooperatives managed with a cross-ministerial supervision system, namely the Ministry of Finance and the Ministry of SOEs.
Budi also added that this program has extraordinary potential to stimulate the village economy. He revealed that the potential for money turnover from village cooperatives could reach Rp2,000 trillion from the consumption sector alone. If the village also moves in the production sector, this potential could increase two to three times, reaching Rp1,500 to Rp2,000 trillion.
Mahendra Siregar from OJK also stated that this village cooperative will form a solid financial ecosystem to support the growth of MSMEs. He explained that the existence of cooperatives will expand the reach of financing to remote villages and become a driver for financial inclusion nationally. OJK is also committed to continuing to assist financial institutions in implementing this program, to ensure that financing truly reaches the lower classes who are the main target.
Red and White Cooperative is not just a village-level financial institution. It is a symbol of the revival of the people’s economy and the spirit of mutual cooperation typical of Indonesia. Amidst the challenges of inequality in financial access and the dominance of large capital, cooperatives are present as an answer to the needs of the community for a fairer and more equitable economic system.
Through this cooperative, the village is no longer just an object of development, but has become a driving force for a strong and independent national economy. This program proves that the state is present, standing with the common people, and opening the way for them to grow and develop.
Full support from OJK, synergy between ministries, and the presence of state banks show that Indonesia is restructuring its economic foundations with a downward orientation. With the Red and White Cooperative as the spearhead, this program is believed to be the main driver in creating economic balance and guiding the nation towards a grand vision: Indonesia Emas 2045.
*) Economic observer