He explained that the recent Rp200 trillion (US$12.2 billion) injection into five state-owned banks from the government did not include such requirements.
"There's no specific target. Essentially, the funds are with the banks. If the banks choose to use them, they can do so using the existing system. In principle, the funds are available for that program," Sadewa said.
He added that if state-owned banks decide to provide loans to village cooperatives, the applicable interest or placement cost would be only 2 percent.
This rate, he noted, is lower than the 4 percent interest that banks are generally required to pay the state, as outlined in a finance ministerial decree on the placement of Rp200 trillion into the five state-owned banks.
Sadewa confirmed that the funds have already been disbursed to the banks and can now be used for public lending or cooperative financing.
"The money is already there — just use it. But the scheme is standard for the Red-and-White Village Cooperatives," he said, referring to one of the government's landmark programs.
Meanwhile, Coordinating Minister for Food Affairs Zulkifli Hasan said the government is prepared to channel loans to 16,000 cooperatives using the Rp200 trillion already allocated.
Each cooperative will be eligible for loans of up to Rp3 billion, although the actual amount will vary depending on their needs, Hasan added.
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Translator: Maria, Azis Kurmala
Editor: Anton Santoso
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