Finance Minister Sri Mulyani Indrawati said that the funds, held by Bank Indonesia, will be used to provide low-interest loans to the cooperatives through four state-owned banks, namely BNI, BRI, Mandiri, and BSI.
Using the surplus will ensure the capital injection does not affect banking sector liquidity, she explained at the Financial System Stability Committee (KSSK) press conference here on Monday.
The banks will offer productive loans, with interest rate capped at 6 percent, repayment tenors of up to six years, and grace periods ranging from six to eight months.
The lending framework — discussed in coordination with the state-owned banks and the Ministry of State-Owned Enterprises — will require banks to perform thorough due diligence before disbursing loans to the cooperatives.
“This is not about setting the loan quota for each cooperative. They must go through a thorough due diligence to ensure the financing will create real impact in village and local economies,” Indrawati said.
To formalize the process, she signed the Finance Ministerial Regulation (PMK) Number 49 of 2025, which was enacted on July 21, 2025. The regulation outlines the legal procedures for Red and White Village Cooperatives to secure loans.
The minister said that the Ministry of Home Affairs is expected to issue complementary rules on the use of General Allocation Funds (DAU) and Revenue Sharing Funds (DBH) to repay the loans.
Further regulations at the village level will be established by the Ministry of Villages and Development of Disadvantaged Regions (PDT).
Indrawati said that the regulations are meant to erase procedural uncertainty and ensure the growth of the local economy.
“The government may take a calculated risk to stimulate rural economies, but without creating any moral hazard by ensuring all stakeholders carry out their respective responsibilities,” she added.
The 2025 state budget surplus currently stands at Rp457.5 trillion (approximately US$28 billion).
Reporter: Imamatul Silfia, Uyu Liman
Editor: Aditya Eko Sigit Wicaksono
Copyright © ANTARA 2025
