Gov't to Channel $12.4 Billion in State Banks Toward Red White Cooperatives
Key Takeaways
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JAKARTA, Investortrust.id — Coordinating Minister for Food Affairs Zulkifli Hasan has welcomed the government’s placement of Rp 200 trillion, equal to $12.4 billion, in five state-owned banks on Monday, Sept 15, 2025. The funds are expected to flow into Kelurahan/Desa Merah Putih Cooperatives, known as KKDMP, to accelerate the government’s flagship cooperative program.
“Alhamdulillah, today all issues with village cooperatives regarding money are resolved,” Zulkifli, widely known as Zulhas, said at his office in Jakarta.
He explained that complicated rules surrounding village cooperatives had been settled within days, and Finance Minister Purbaya Yudhi Sadewa had ensured the Rp 200 trillion was deposited in the Himpunan Bank Negara (Himbara), a group of state-owned lenders. “This is what we have been waiting for,” Zulhas said.
The minister emphasized that loans for KKDMP are now available, allowing thousands of cooperatives that have been waiting to proceed with capitalization. However, he declined to specify what share of the Rp 200 trillion would be directed specifically toward cooperative financing. “It depends on requirements. There is no fixed limit,” he said.
Zulkifli targeted the realization of 16,000 KKDMP units by October 2025, a significant jump from the current 1,064 units that have already secured Rp 1.06 trillion in initial funding.
Funding Progress and Bank Contributions
According to a presentation from Danantara Indonesia dated Sept 13, 2025, four banks—Bank Rakyat Indonesia (BRI), Bank Mandiri, Bank Negara Indonesia (BNI), and Bank Syariah Indonesia (BSI)—have already provided financing for 1,064 KKDMP units, particularly those in “independent villages” with adequate infrastructure and human resources.
BRI funded 400 units with Rp 96.2 billion in capital expenditure and Rp 30.8 billion in operational costs, totaling Rp 400 billion. Bank Mandiri funded 310 units with Rp 74.5 billion in capex and Rp 235.4 billion in opex, totaling Rp 310 billion.
BNI funded 300 units with Rp 72.2 billion in capex and Rp 227.8 billion in opex, totaling Rp 300 billion. Lastly, BSI supported 54 units with Rp 13 billion in capex and Rp 41 billion in opex, totaling Rp 54 billion.
In total, the four banks disbursed Rp 255.9 billion for capital expenditure and Rp 808 billion for operational expenditure, bringing cumulative cooperative financing to Rp 1.06 trillion.
Finance Minister Clarifies No Six-Month Term
Finance Minister Purbaya Yudhi Sadewa separately stressed that there is no six-month maturity term attached to the government’s Rp 200 trillion fund placement. He said a clerical error in the Ministerial Decree had mistakenly cited a six-month tenor.
“In fact, there is no term. That six-month mention was a mistake. My staff wrote it incorrectly,” Purbaya said at the Presidential Palace complex on Monday.
He added that the purpose of the placement was to stimulate economic activity rather than tie the state to rigid deposit terms. Banks could use the liquidity to support priority government programs if they struggled to channel loans.
“When I wanted to channel Rp 200 trillion, the banks told me they could only absorb Rp 7 trillion,” Purbaya said, pointing to limited lending capacity.
The former head of the Indonesia Deposit Insurance Corporation (LPS) added that no additional funds would be placed. Instead, banks would be given guidance to deploy the existing Rp 200 trillion into flagship government initiatives.
He assured that the arrangement would not burden state finances, noting that the government would not be obligated to withdraw the funds abruptly. “If necessary, I don’t have to pull money from the banks,” Purbaya said.
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