The meeting, scheduled for Monday afternoon, will take place at President Prabowo Subianto’s residence in Hambalang, West Java, according to Minister of Cooperatives Budi Arie Setiadi.
Speaking at a press conference, Setiadi said the discussion will focus on ensuring the smooth development and operation of the village cooperatives once their organizational structures and legal status are finalized.
“This meeting in Hambalang will center on development and operations. After that, we’ll move on to monitoring, evaluation, and identifying the unique potential of each village cooperative,” he said.
Setiadi stated that the target of establishing 80,000 cooperatives has been met. The next step is to formalize their legal status with the Ministry of Law and Human Rights, a process expected to conclude by the end of June.
The cooperatives are scheduled to begin operations between July and October 2025.
According to Setiadi, the budget required to establish the 80,000 cooperatives is estimated at Rp400 trillion (approximately US$24.2 billion).
The government has set an initial loan ceiling of up to Rp3 billion per cooperative. The funding will be provided by state-owned banks and will not take the form of grants. Each cooperative will be required to repay the loan in installments over a six-year period.
However, some observers have raised concerns that this financing model could increase the risk of non-performing loans (NPLs). There are fears that relying on village fund allocations to repay the loans could place a long-term strain on village budgets.
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Translator: Shofi, Kenzu
Editor: Anton Santoso
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