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The Government Ensures Unhindered Financing for the Merah Putih Village Cooperative

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Jakarta – Cooperatives Minister Ferry Juliantono has confirmed the availability of funds and regulations ahead of the launch of 1,000 Red and White Village/Sub-District Cooperatives (Kopdes/Kel) next week. The program is said to be entering a crucial phase, particularly in establishing the financing scheme and mechanisms that will support cooperative operations throughout Indonesia.

“We’re ready. We just need to inspect the land for the warehouse and outlets. After that, the Red and White Village Command will be up and running,” said Ferry.

Ferry explained that financial support for the Red and White Village Cooperatives (Kopdes Merah Putih) has been strengthened by the introduction of important regulations. With these regulations, the government ensures there are no longer any administrative obstacles that could disrupt the progress of this strategic program.

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

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 a special village deliberation (musdesus) and the approval of the regional head. However, the latest regulation from the Minister of Villages states that musdesus can be held simultaneously, eliminating this obstacle. Similarly, the requirement for regional head approval has now been removed.

“In fact, the requirement for regional head approval is no longer necessary. The Minister of Finance and Danantara have already given their okay,” he stressed.

The loan funds for the Red and White Village Cooperative will not only be used for working capital but also include investment in warehouse and store construction. To expedite implementation, the Ministry of Cooperatives and SMEs, along with the State-Owned Enterprises (Himbara) bank, 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. 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 20,000 Red and White Village Cooperatives (Kopdes Merah Putih) have complete data and funding ready for deployment. The rollout will begin with 1,000 cooperatives next week.

“Making the Red and White Village Cooperatives (Kopdes Merah Putih) 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,” he said.

With funding certainty and regulatory support, the government ensures the smooth and unhindered implementation of the Red and White Village Cooperatives (Kopdes Merah Putih) program. This program is expected to be a major driver of the village economy while strengthening community independence.

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