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View all search resultsCooperatives financing raises concerns over SOE banks, fiscal risks
Experts argued that SOE banks still need to assess the commercial viability of the cooperatives and not just rely on the government backstop.
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Affordable care: A seller serves a customer on July 21 at a pharmacy during the launch ceremony for a cooperative under the government's Red and White Cooperatives program, in Serang regency, Banten, West Java. (Antara/Angga Budhiyanto)
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oncerns mount as Red and White Cooperatives’ (KDMP) loan repayments near, with experts warning that the massive financing behind President Prabowo Subianto’s priority program could put additional pressure on state-owned banks and the country’s fiscal capacity.
The government initially aims to build 80,000 cooperatives across the archipelago backed by syndication financing from state-owned lenders totaling around Rp 220 trillion (US$12.3 billion) channeled to PT Agrinas Pangan Nusantara, the state vehicle responsible for constructing the physical infrastructure for the cooperatives program.
The target was eventually reduced to only 40,000 cooperatives, with 30,000 units targeted to be operational by the end of this year.
Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI), Mandiri and Bank Syariah Indonesia (BSI) have each contributed Rp 55 trillion to provide the syndicated loan carrying a 72-month, or six-year, tenor and 6 percent lending rate.
The first loan installment is due in September.
Although Agrinas Pangan is recorded as the debtor, the government will ultimately cover the repayment using funds allocated through the state budget, including the general allocation fund (DAU), revenue-sharing fund (DBH) or village funds, as stipulated in the Finance Ministry Regulation (PMK) No. 15/2026.
Chief operating officer (COO) of state asset fund Danantara Dony Oskaria has asserted that the financing scheme to roll out the cooperatives program would not hurt state-owned lenders.
