Speaking to the media after a meeting on the program at the Presidential Palace in Jakarta on Thursday, Coordinating Minister for Food Zulkifli Hasan announced that a total of 9,835 cooperatives have been established since the issuance of a presidential instruction concerning the initiative on March 27.
He emphasized that the government is creating these cooperatives to shorten the distribution chain of essential commodities and government aid items.
Hasan added that the cooperatives will serve as hubs for groceries, fertilizers, liquefied petroleum gas (LPG), and financial services linked to state-run banks.
He informed the press that the financial services would include savings and loan facilities, aimed at shielding villagers from predatory lending practices.
Regarding funding, Hasan explained that the government has devised a loan scheme to support the establishment and operations of rural cooperatives.
For the initial stage, a loan of up to Rp3 billion (around US$182,000) is available, he said.
“It should be noted that this is not a grant, but a limited loan. A cooperative may be eligible for a higher limit if it succeeds in growing its business,” Hasan pointed out.
He also highlighted that the government has set up a task force to guide the cooperatives in running productive and profitable businesses.
“The cooperatives will then use the profits they generate to pay off loan installments provided by state-run banks,” he added.
Hasan further emphasized the need for continued guidance and mentoring to help the cooperatives grow and deliver tangible benefits to rural residents.
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Translator: Andi F, Tegar Nurfitra
Editor: Anton Santoso
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