Jakarta – The government continues to strengthen its strategic initiatives to encourage the growth of the people’s economy by strengthening the role of cooperatives. In 2026, the implementation of a low-interest loan program through the Red and White Cooperative will become a key focus in expanding access to inclusive financing for micro, small, and medium enterprises (MSMEs).
This policy addresses the classic challenges faced by small businesses, particularly limited access to formal financing. High loan interest rates and complex requirements make it difficult for many MSMEs to develop their businesses. Through the Red and White Cooperative, the government provides alternative financing with low interest rates, simple procedures, and a community-based approach.
President Prabowo Subianto emphasized the importance of cooperatives as the foundation of the people’s economy.
“Cooperatives must be the backbone of the national economy. We want to ensure that small communities have access to affordable and equitable financing,” he explained.
In addition to providing access to capital, the government also ensures that this program is integrated with business capacity building. MSMEs affiliated with the Merah Putih Cooperative receive assistance in the form of business management training, financial literacy, and product quality improvement.
The Minister of Cooperatives, Ferry Juliantono, emphasized that this program is designed to reach businesses that have previously been excluded from formal financial services.
“The Merah Putih Cooperative is an important instrument for providing inclusive financing with low interest rates and a fast process,” he said.
He also added that the government is encouraging cooperatives to become more adaptive to current developments. “We are strengthening the digitalization of cooperatives to make services more transparent, efficient, and easily accessible to the wider community,” Ferry Juliantono added.
Meanwhile, the Coordinating Minister for Economic Affairs, Airlangga Hartarto, assessed that cooperatives play a strategic role in accelerating national economic recovery and growth.
“Cooperatives are a driver of the community-based economy, capable of creating jobs and improving welfare,” he said.
Throughout 2026, the government recorded a significant increase in loan disbursement through the Merah Putih Cooperative. This program has reached thousands of businesses in various sectors, from trade and agriculture to home industries. The impact is visible in increased business productivity and the creation of new job opportunities at the local level.***
