Ministry of Finance Prepares Regulation on Funding for Merah Putih Cooperative

The government, through the Ministry of Finance (“Ministry”), will encourage accelerated spending for the remainder of the year through funding for the Merah Putih Village Cooperative. Director-General of Economic and Fiscal Strategy at the Ministry of Finance Febrio Nathan Kacaribu said that the government will channel funds to banks through below the line or State Budget (APBN) financing by adjusting the demand of cooperatives.

“For the placement of funds, we will prepare a more detailed Regulation of the Minister of Finance (“Regulation”). However, the readiness of village funds is already in place,” Febrio told Hukumonline.

Febrio added that to support the liquidity of the Merah Putih Cooperative program, the government will also utilize the Budget Surplus Balance (SAL) funds held at the Bank Indonesia and channeled through banking loan facilities. This will not burden the banking sector when disbursing loans.

In the future, the Merah Putih Village Cooperative can apply for loans from banks up to Rp. 3 billion, including Rp. 500 million for operational purposes, with an annual interest rate of 6 percent. “Just wait, because this is not a new form of capital injection,” he added.