"Village minister's regulation and home affairs minister's regulation must align with the Finance Minister's Regulation Number 49 of 2025," he noted in a statement here on Tuesday.
According to Setiadi, the Villages and Development of Disadvantaged Regions Minister's Regulation outlines the mechanism for village heads' approval of financing for the village cooperatives.
Meanwhile, the Home Affairs Minister's Regulation stipulates the mechanism of approval from district heads and mayors for the financing.
"Financing applications must align with the proposed business and consider the potential and needs of the village," the minister remarked.
Furthermore, he noted that the Finance Minister's Regulation Number 49 of 2025 concerning Loan Procedures for Funding the Red and White Village Cooperatives has been issued.
This regulation aims to resolve financing issues through village cooperatives based on the required provisions.
"We are closely monitoring this program. We are maintaining the credibility of this program, including minimizing the possibility of misuse by certain parties," he emphasized.
In ensuring the operations of the cooperatives can run smoothly, he assessed that collaboration with various parties, especially state-owned banks, is necessary.
The collaboration includes improving financial literacy and assisting village cooperatives to optimize technology use.
President Prabowo Subianto officially launched around 80 thousand village cooperatives established nationwide under the Red and White Village Cooperatives program in Klaten District, Central Java, on July 21.
The cooperatives are envisaged as hubs of economic and social services in village communities, offering savings, loans, and clinic services, among others.
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Translator: Arnidhya Nur, Raka Adji
Editor: Azis Kurmala
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