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March 12, 2025 | 10:49 pm
TEMPO.CO, Jakarta - President Prabowo Subianto plans to launch 70 thousand units of Merah Putih Village Cooperatives across Indonesia this year. Minister of Home Affairs Tito Karnavian estimated that the project will require Rp350 trillion in funding.
The estimate stems from the calculation that each cooperative unit calls for Rp5 billion to kickstart its operations. “Multiplied by 70 thousands, it’s Rp350 trillion,” Tito said after a meeting at the Ministry of Cooperatives office in Jakarta on Tuesday, March 11, 2025.
The government currently drafts a financing scheme for the project, including through loans from state-owned banks (Himbara). “The Merah Putih Village Cooperatives will be supported by low-interest loans from Himbara, totaling around Rp5 billion,” he said.
Another scheme for the village cooperatives is by earmarking 30 percent from the Village Budget (APBDes). Tito mentioned that the APBDes is currently designated 70 percent for village initiatives and 30 percent to support the central government programs.
On the same occasion, Minister of Cooperatives Budi Arie Setiadi mentioned that the financial scheme for the Merah Putih Village Cooperatives is still being discussed. “How the financing will be, how the payments will be made, we will discuss everything later,” Budi Arie said. He confirmed that Rp5 billion is needed to kickstart the village cooperative operations.
The cooperatives, he went on, may use the initial funding to finance various things, including to build facilities, storage, village pharmacies, village clinics, offices, and the procurement of trucks and logistical needs.
However, Budi Arie and Tito emphasized that not all Merah Putih Village Cooperatives will be built from scratch, as some could be created off pre-existing cooperatives in the villages.
Hendrik Yaputra contributed to the writing of this article.
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