"According to the president, the cooperative is intended to cut off loan sharks, middlemen, or online loans that ensnare and become a source of poverty in villages," Minister of Cooperatives Budi Arie Setiadi remarked at the Presidential Palace Complex in Jakarta on Friday.
The minister explained that the cooperative will offer funding to village residents through a savings and loan unit, with a scheme aligned with their capabilities.
The minister remarked that the cooperative is also expected to liberate villagers from multiple debts, foster prosperity, and bolster people's welfare.
On the same occasion, Home Affairs Minister Tito Karnavian highlighted that the Red and White Village Cooperative is a manifestation of the state's presence to support business funding, especially for villagers.
According to the minister, the cooperative offers legal certainty in finance and serves as a legitimate business funding mechanism in villages, contrasting with the illicit practices of loan sharks and online lenders.
"We do not want our people to depend their life on loan sharks and online loans that cannot be legally accounted for. Cooperatives present clearer transaction for the people," he remarked.
Earlier, on Monday (March 3), it was announced that Prabowo would establish an economic activity center in each village called the Red and White Village Cooperative to absorb local agricultural products and shorten the distribution chain to consumers.
Coordinating Minister for Food Zulkifli Hasan stated that the formation of this cooperative was a directive from President Prabowo Subianto during a limited meeting held on Monday afternoon.
"The budget will come from the existing village funds. The government had formed the agency. We will also build a warehouse and six outlets," Hasan remarked on Monday.
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Translator: Livia Kristianti/Mentari Dwi, Resinta S
Editor: Azis Kurmala
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