Coordinating Minister Zulhas: If The Capital Of The Red And White Cooperative Uses The State Budget, It Will Definitely Fail

Coordinating Minister for Food Zulkifli Hasan (Photo: Doc. VOI)

JAKARTA - The government ensures that the capital of the Red and White Village Cooperative does not come from the State Revenue and Expenditure Budget (APBN). However, loans from the Association of State Banks (Himbara) are used for business.

Coordinating Minister for Food Zulkifli Hasan revealed that if the Red and White Village Cooperative gets capital from the state budget, it will definitely fail. This is because state money will not return.

"If you use the state budget, it will fail. For example, the state budget, how much is the withdrawal of the state budget? One cooperative was given Rp1 billion, borrowed, definitely not returned," he said at the Indonesia Summit 2025 at The Tribarata, Dharmawangsa, Jakarta, Thursday, August 28.

Zulhas explained that the initial capital for the Red and White Village Cooperative could be obtained from Himbara, through People's Business Credit (KUR). So, do not use state money.

"Not using APBN money, what do you want to take? There is no APBN money," said Zulhas.

In addition, Zulhas also ensured that loans from Himbara would not be received in cash by the Red and White Village Cooperative. This is because the funds will be allocated directly to the expenditure needs of each cooperative.

"So cooperatives don't spend money," he said.

Zulhas emphasized that the Red and White Village Cooperative is a community empowerment program. With this program, he continued, rural communities can be more productive, and the village economy can grow.

People have to want to learn. We think about business, we give a profitable business model, there are seven outlets. It must be profitable, but we have to work hard, we have to want to learn," he said.

Government Guarantees Red And White Kopdes Will Not Fail To Pay

Previously, the Minister of Food Affairs, Zukifli Hasan, ensured that the Red and White Village Cooperative would not fail to pay off the loan to the bank. In fact, he believes the Kopdes can pay all the loans.

For your information, the Red and White Kopdes can access financing from banks a maximum of IDR 3 billion, with a maximum interest rate of 6 percent.

"If you can pay everything. How do you think it's bad? God willing, this cooperative will be able to pay," he said at a press conference at the Ministry of Food Affairs, Tuesday, July 29.

In addition, the Head of the Red and White Kopdes Task Force believes that even though there are village funds that are guaranteed, the Kopdes will run well and make a profit.

"God willing, the cooperative will profit," he said.

Separately, the Minister of Villages and Regional Development Yandri Susanto said Kopdes' operations were the responsibility of the Village Head to the ranks who were members of the Special Village Deliberation (Musdesu).

"Mus rumor must be observed in very detail, I think it is feasible or not because later if it fails to pay, the village funds will be guaranteed. Now, I really think it's worth it or not," said Yandiri.

Furthermore, Yandri believes the Kopdes will be for. The reason is, this cooperative unit can also apply for more than one business model. Starting from fertilizers, rice to pharmacies.

"But in our opinion, for seven outlets (in one cooperative), God willing, everything will be profitable, selling gas, fertilizer, pharmacy rice," said Yandri.

Yandri also said that in the regulations that will be drawn up related to village funds as collateral for the village head, not 100 percent will be guaranteed but only 30 percent.

"So if for example the village fund is Rp. 500 million, then the maximum borne by the village fund guarantee is Rp. 150 million. The bigger, of course, the bigger it is, then it was agreed that it also guaranteed it not all at once," he said.