"If the management is good, the vision and mission of the Red and White Village Cooperative will be successful," said the Acting Head of the Center for Development of Village and Disadvantaged Region Communities at the Ministry, Hasman Ma'ani.
He made the statement while opening an online mentoring event for financing the Red and White Village Cooperative, as monitored here on Wednesday.
Ma'ani explained that cooperative governance includes transparency of financial reports, active participation of members through meetings, accountability of management, and professionalism in running the business.
In addition, he also reminded the importance of risk mitigation mechanisms to ensure business continuity.
Ma'ani also encourages synergy between administrators, members, and actors in the field to create good services to ensure the success of the Red and White Village Cooperative program.
"This is needed so that Village Cooperatives can be sustainable," he said.
The ministry regulates the procedures for approving financing for the Red and White Village Cooperative in the Regulation of the Minister of Villages and Development of Disadvantaged Regions (Permendes PDT) Number 10 of 2025.
The regulation on the approval mechanism from the village head to finance the Red and White Village Cooperative was signed by the Minister of Villages and Development of Disadvantaged Regions Yandri Susanto on August 12, 2025.
He also said that the issuance of Permendes 10/2025 was to follow up on Presidential Instruction (Inpres) Number 9 of 2025 concerning the Acceleration of the Establishment of Red and White Village Cooperative and the Minister of Finance Regulation (PMK) Number 49 of 2025 concerning Loan Procedures for Funding Merah Putih Village Cooperative.
Article 2 paragraph (5) of PMK Number 49 of 2025 states the regulations regarding the authority, obligations, and support in the use of village funds by village heads, as referred to in paragraph (3), must be based on the regulations of the minister who organizes government affairs for villages and development of underdeveloped regions.
This regulation also applies to the approval mechanism from the village head to the Red and White Village Cooperative.
He also explained that Village Regulation Number 10 of 2025 regulates various matters in detail, including the authority of the village head to approve loans intended to finance the business of Red and White Village Cooperative, based on village discussion.
These business activities include activities at the cooperative office, procurement of nine basic commodities, village clinics, village pharmacies, warehousing, logistics, and/or savings and loan businesses.
Related news: RI Govt deploys business advisors to boost village co-ops
Related news: Ministry speeds up financing scheme for red and white village coops
Related news: Govt launches first phase of Red and White fishing village development
Translator: Tri Meilani Ameliya, Katriana,
Editor: Azis Kurmala
Copyright © ANTARA 2025
