Celios Economist Says Red And White Kopdes Loans Potentially Failed To Pay, Reaches IDR 85.96 Trillion

Illustration: Photo: Doc. ANTARA

JAKARTA - Economic researcher at the Center of Economic and Law Studies (Celios) Dyah Ayu assessed that the Red and White Village Cooperative (Kopdes) in Indonesia faces great economic risks, and even has the potential to increase the burden on the banking sector and village governments.

Dyah said, based on the results of an analysis conducted by Celios, it is estimated that there is a risk of default that can reach Rp85.96 trillion during the six years of the loan period, which seriously burdens the village government as the person in charge.

In addition, he continued, it was revealed that the opportunity cost borne by the banking sector was very significant, with a figure reaching IDR 76.51 trillion.

"The cost of this opportunity illustrates the huge losses borne by banks because they prefer to fund these cooperatives instead of placing their funds in more profitable investments," he said in an official statement, Sunday, July 20.

Not only that, Dyah also assessed that this policy has the potential to harm the national economy. Celios' projection shows that this policy can cause a decline in GDP by Rp9.85 trillion and reduce public income by Rp10.21 trillion.

"This negative impact even includes a decrease in employment absorption by more than 824,000 people, which suggests that this policy risks creating greater economic distortions," Dyah said.

According to Dyah, the Red and White Kopdes also faces major challenges in the Human Resources (HR) sector, which has the potential to hamper the performance and sustainability of this program.

"Many cooperatives are managed by managers with limited managerial capacity, making it difficult to manage resources and run business efficiently," added Dyah.

Kopdes Merah Putih Launched July 21

Previously, the Coordinating Minister for Food Zulkifli Hasan said the launch of the Red and White Village Cooperative (Kopdes) would be carried out on July 21. The reason is that all regional heads and village officials can attend,

For your information, initially the Red and White Kopdes was scheduled to be launched on July 19, 2025 in Bentangan Village, Wonosari District, Klaten Regency, Central Java. However, because the date was Sunday, it was decided to be postponed to July 21.

Zulhas, as he is familiarly called, said that the presence of provincial officials to village officials was very important in order to receive direct directions from Prabowo Subianto.

"The 19th is Saturday, yes, so we want the President's explanation to be known, followed by all parties so that we don't work twice, both governors and regents, mayors, village heads, BPD, and village assistants," he said.

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Zulhas after the coordinator meeting (Rakortas) for the launch of the Red and White Kopdes at the Coordinating Ministry for Food, Central Jakarta, Tuesday, July 15.

Zulhas also confirmed that the change in the launch date of the Red and White Kopdes had been approved by Prabowo.

"Alhamdulillah, Mr. President is ready," said Zulhas.