This policy was implemented to ease the financial burden on cooperatives while ensuring their business continuity during the post-disaster recovery phase.
"The LPDB has implemented restructuring measures, including a grace period and tenor extensions of up to 60 months," Juliantono stated during a Coordination Meeting for the Sumatra Post-Disaster Recovery in Jakarta on Friday, according to a statement.
He explained that the floods and landslides in Aceh, North Sumatra, and West Sumatra have caused significant losses for cooperatives.
In North Sumatra, losses were recorded at Rp37.72 billion (approximately US$2.25 million). Additionally, nine LPDB-partner cooperatives in Aceh and North Sumatra suffered losses totaling Rp20.66 billion.
He assured that his ministry and the LPDB would continue to closely monitor the situation to ensure that the burden on disaster-affected cooperatives is effectively reduced.
He further said that the ministry, in collaboration with the Cooperative Movement for Disaster Relief, has also distributed Rp1.86 billion in social aid to meet the basic needs of the affected residents, including water purification systems and baby food packages.
Apart from loan restructuring, he affirmed that the Ministry of Cooperatives will set up aid distribution posts in Aceh Tamiang, Central Tapanuli, and Agam.
These posts serve as coordination centers to reactivate affected cooperatives' businesses and support needs for temporary housing.
On that occasion, he underscored the importance of accurate data collection to ensure quicker and more well-targeted recovery support.
The minister added that his ministry is prioritizing the construction of outlets, warehouses, and supporting facilities for the affected village cooperatives and business groups, while also providing business mentoring and institutional strengthening.
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Translator: Shofi Ayudiana, Raka Adji
Editor: M Razi Rahman
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