At a press conference here on Friday to clear the air regarding the sources of the cooperatives' initial funding, Hasan said that once they are formed, the cooperatives can apply for loans to state-owned banks for funding their operations.
"The initial Rp3 billion is the loan ceiling. It may be fully utilized or not," he added.
According to Hasan, the loans can be used for six types of cooperative businesses, including LPG and fertilizer sales.
The minister explained that the loan ceiling of Rp3 billion can be used flexibly based on business needs and will need to be paid back within a maximum period of six years, according to the agreement.
He further noted that as of May 23, 2025, a total of 39,639 villages out of the target of 80 thousand have carried out deliberations, which are expected to be completed by May 31.
Furthermore, by June 30, all the cooperatives are targeted to be officially registered as legal food cooperatives with the Ministry of Law and declared nationally on July 12, coinciding with the commemoration of National Cooperatives Day.
Then, the cooperatives are expected to start operating actively and distribute food from October 20.
President Prabowo Subianto has issued Presidential Instruction Number 9 of 2025 on the Acceleration of the Red and White Village Cooperatives' Formation and formed a special task force to expedite the establishment of the village cooperatives.
Translator: Muhammad Harianto, Raka Adji
Editor: Aditya Eko Sigit Wicaksono
Copyright © ANTARA 2025
