Government Ensures Loan Funds for Establishment of Red and White Cooperative Come from Himbara
Jakarta – The government has confirmed that the source of funding for the establishment of the Red and White Village/Sub-district Cooperative (Kopdes Merah Putih) will come from loans distributed by the Association of State-Owned Banks (Himbara).
Coordinating Minister for Food, Zulkifli Hasan, emphasized that the loan funds for the establishment of Kopdes Merah Putih came from Himbara. The funding scheme will also continue to prioritize the principles of accountability and business feasibility.
ŇKopdes Merah Putih will not use grant funds from the APBN. Everything is based on commercial loans channeled through Himbara banks with a maximum ceiling of IDR 5 billion per cooperative,Ó said Zulhas.
The Minister of Cooperatives (Menkop), Budi Arie, revealed that the formation of this cooperative is not just a political program, but is designed so that cooperatives truly become productive business entities that are able to finance themselves, including paying loan installments from the profits of the business they run.
ŇVillage funds can be used as a guarantor. If the cooperative fails to pay the installments, it can be deducted from the village funds received. However, we are sure that Kopdes will profit, and can even achieve a net profit of at least IDR 1 billion per year because it is supported by government subsidies for food and fertilizer distribution,Ó he said.
Meanwhile, Deputy Minister of Villages and Development of Disadvantaged Regions, Ahmad Riza Patria explained, the government will pay off the loan from the state bank in installments over a period of 10-15 years. The source of funds for the installments comes from the village fund post that has been included in the APBN.
ŇThe government is targeting to build 80 thousand village cooperatives during President Prabowo’s administration. Later, the development of the cooperatives will use funds from Himbara as well as business capital from Himbara,Ó said Riza.
By the end of April 2025, 5,200 Kopdes have been formed from a target of 80,000 cooperatives throughout Indonesia. The government targets these cooperatives to become the main instrument in building an independent village economy, cutting the food distribution chain, and eradicating the practices of middlemen and loan sharks.
This program is part of the national strategic agenda in order to realize food sovereignty and empower the village economy, in line with the vision of people’s economic development in the era of President Prabowo Subianto’s administration.
It should be noted that Kopdes Merah Putih is a multifunctional cooperative designed to handle the distribution of food, fertilizer, and basic necessities directly to the community at affordable prices. In addition, this cooperative is expected to be a vehicle for strengthening the local economy owned and managed by the village community itself.
This program is not only intended to accelerate the national economic equality, but also as a tool for empowering and empowering villages in facing various economic challenges, such as long distribution chains and dependence on middlemen. [^]
