Jakarta – The government continues to strive to strengthen access to fair and affordable financing for the community, particularly in addressing the rise of illegal online lending practices and loan sharks. One concrete step being taken is the Red and White Village Cooperative (Kopdes) program, which offers a low-interest loan scheme.
Minister of Cooperatives Ferry Juliantono stated that the Red and White Village/Sub-District Cooperative (Kopdeskel) will offer loans with a low interest rate of 6 percent per year. This measure aims to provide the community with access to affordable credit for various needs.
“This is to provide an alternative for the community so they don’t fall into the trap of loan sharks and online loans,” said Ferry.
Ferry stated that the financing distribution scheme will be carried out through ultra-micro financial institutions operating under the auspices of the Red and White Kopdeskel. He is also committed to continuously monitoring liquidity needs in each village to ensure the sustainability and effectiveness of this program.
In addition to providing low-interest loans, the Red and White Kopdeskel also has another strategic role. This cooperative is expected to provide daily necessities at more affordable prices. The Red and White Village Cooperative will also act as an offtaker, absorbing products from the local community.
The Ministry of Cooperatives is currently holding a leadership meeting to further refine the institution’s work focus. In addition, discussions regarding the mechanism for absorbing village products are a crucial agenda item at the meeting.
“So, today, we at the Ministry of Cooperatives will hold a leadership meeting to focus on and discuss, most importantly, how this Village Cooperative can become an offtaker, absorbing products from the village community,” said Ferry.
The implementation of this program is expected to stimulate a more massive grassroots economy. Furthermore, strengthening the function of cooperatives as a buffer for the village economy is a key short-term government target.
Ferry believes that the presence of microfinance institutions at the village level will accelerate the national financial inclusion process. Moreover, easier access to capital for small businesses will have a direct impact on reducing poverty in the regions.
The introduction of low-interest loans through the Red and White Village Cooperative is expected to be a breath of fresh air for the community, particularly micro, small, and medium enterprises (MSMEs). With easier and more affordable access to financing, they can develop their businesses without the burden of high interest rates. This step also demonstrates the government’s commitment to protecting the public from harmful financial practices and encouraging the creation of a fairer and more sustainable economic system throughout Indonesia.
