Jakarta (ANTARA) - Red and White Village/Sub-district Cooperatives (Koperasi Desa/Kelurahan Merah Putih) will be able to access financing through the People’s Business Credit (KUR) program from July 22, 2025, Deputy Minister for Cooperatives, Ferry Juliantono, announced on Tuesday.

“God willing, the formation process will be completed by July 21. Then, starting July 22, Red and White Cooperatives will be able to access KUR financing through state-owned banks under Himbara,” he said during a meeting at the Coordinating Ministry for Food Affairs in Jakarta.

The initial financing for the village cooperatives will be channeled through a special KUR scheme, with each cooperative allowed to secure a maximum loan of up to Rp3 billion (around US$184,396).

The loans will carry a 6-percent interest rate, with repayment tenures of six years for working capital and ten years for investment purposes.

In addition, the government has proposed a six-month grace period to give cooperatives space to adapt during the initial phase of operations, without the pressure of immediate loan repayments.

Juliantono explained that the financing scheme will involve a tripartite collaboration between cooperatives, distributors or suppliers, and distributing banks—state-owned banks and Bank Syariah Indonesia (BSI).

These banks will conduct business feasibility assessments to determine the approved loan amount for each cooperative.

Several supporting regulations for the financing program are currently being fast-tracked, including a Ministry of Finance regulation (PMK), which is now in its final stages.

Juliantono, who also serves as coordinator of the daily implementation task force for the acceleration of Red and White Cooperatives’ establishment, said that preparations for the cooperatives’ launch are nearly complete.

A total of 81,147 village-level special deliberation meetings have concluded, with 78,271 or 96.45 percent cooperatives obtaining legal status.

In addition, the business ecosystems and financing schemes for 103 pilot Red and White Village Cooperatives have been readied. The pilots are expected to serve as models for others across the country.





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