FX.co ★ Indonesia Expects State Bank Funding to Spur Village Co-op Programme

The Indonesian government has allocated USD 12 billion to state-owned banks to energize its flagship initiative aimed at establishing 80,000 village cooperatives across the nation. This move comes after the program's initial implementation faced challenges, according to a senior minister on Monday, as per Reuters. The initiative, known as the "Red and White Cooperatives" program, aims to stimulate economic growth in rural areas and create employment opportunities at the village level. This program is a significant element of President Prabowo Subianto’s economic strategy, which seeks to elevate economic growth to 8%, a substantial increase from the current rate of approximately 5%. This ambition was a pivotal aspect of his campaign in last year’s presidential election. "The funds are now accessible through state banks," stated Zulkifli Hasan, the senior minister responsible for overseeing the cooperative initiative, highlighting the gradual progress since the launch in July. Last week, Finance Minister Purbaya Yudhi Sadewa allocated IDR 200 trillion (USD 12.2 billion) to five state-owned banks, earmarking these funds explicitly for lending to support the program.