He noted that five state-run banks have been tasked with mobilizing Rp200 trillion (US$12 billion) in funds to finance the operations of cooperatives established under the Red and White Village Cooperatives (KDMP) program.
"We hope the funds will be accessible by Wednesday," he stated after a consolidation meeting on expediting the operationalization of village cooperatives, held in Medan City, North Sumatra, on Friday.
The meeting gathered national, provincial, district, and municipal task forces assigned to accelerate and advance the KDMP program, as mandated by Presidential Instruction No. 9 of 2025 signed by President Prabowo Subianto on March 27.
Head of the North Sumatra Cooperatives and Small and Medium Enterprises Office Naslindo Sirait emphasized that all district heads and mayors across North Sumatra have pledged their commitment to supporting the cooperatives program.
"Of course, all district heads and mayors in North Sumatra are ready to help operationalize Red and White cooperatives as chairpersons of district and municipal KDMP task forces," he affirmed.
He noted that the provincial government remains strongly committed to ensuring that the national priority program runs as expected. As of now, 6,110 village cooperatives have been formed in North Sumatra, with 202 already operational.
"That number will continue to grow," Sirait added.
On financing, he explained that appointed state-owned banks are currently drafting technical guidelines, while the provincial government is preparing business proposals for KDMPs.
President Prabowo launched 80 thousand village cooperatives nationwide last July, with about 100 now operational as pilot projects. For this year, the target is to distribute funds to 20 thousand cooperatives.
The government envisions these entities as vehicles to help rural residents access essential goods and services at affordable prices, while stimulating economic growth from villages.
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Translator: Muhammad S, Tegar Nurfitra
Editor: Azis Kurmala
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