LPDB Koperasi Commends KSP Balo'ta for Supporting 40 Village Cooperatives in Tana Toraja

The Revolving Fund Management Agency (LPDB) Koperasi has expressed appreciation for the performance of KSP Balo’ta in Tana Toraja, South Sulawesi, which is recognised for consistently maintaining high-quality financing management while providing significant benefits to its members.

Krisdianto, the President Director of LPDB Koperasi, stated that KSP Balo’ta is one of the oldest cooperatives in Tana Toraja and serves as a strategic partner to LPDB Koperasi. He noted that KSP Balo’ta possesses an excellent track record in managing LPDB financing, evidenced by the cooperative’s compliance in repaying funds and the targeted use of financing in accordance with the revolving fund programme’s objectives.

“Given KSP Balo’ta’s reputation with LPDB, both in terms of loans provided and repayments, Balo’ta is among the best because there have been no issues regarding repayments or the utilisation of funds for its members,” Krisdianto said in a written statement on Sunday.

He explained that the visit aimed to directly monitor the performance and development of KSP Balo’ta, while also exploring potential avenues for strengthening the cooperative in the future. Furthermore, Krisdianto received information that KSP Balo’ta is independently mentoring approximately 40 Red and White Village/Sub-district Cooperatives (KDKMP) spread across two regencies in Tana Toraja. This mentorship covers around 200 KDKMP administrators, particularly in aspects of cooperative governance and management.

“As representatives and an extension of the Ministry of Cooperatives, we welcome and offer our highest appreciation for what Balo’ta has achieved,” he said. Krisdianto added that this contribution is a key consideration for LPDB Koperasi to continue providing support for the business development of KSP Balo’ta. He noted that LPDB’s support for KSP Balo’ta not only impacts the recipient cooperative but also has the potential to expand the benefits of financing to members and other cooperatives within its ecosystem.

Having Received Financing Approximately 10 Times

The Chairman of KSP Balo’ta, Dedi Bongga, expressed gratitude for the attention and visit from LPDB Koperasi. He noted that the relationship between KSP Balo’ta and LPDB has lasted for approximately a decade. “For about 10 years, we have gradually been provided with working capital assistance. We have received it approximately 10 times to date,” said Dedi.

Dedi explained that this financial support has helped KSP Balo’ta expand its services to members, including small and medium-sized enterprises. Currently, around 15,000 members utilise the cooperative’s services. Consequently, KSP Balo’ta hopes that financial support from LPDB Koperasi will continue so that the cooperative can further enhance its financing services to members. “Moving forward, we still require attention, and even loan assistance for our members,” he added.

In addition to serving its members, KSP Balo’ta is now actively mentoring around 40 KDKMP administrators across two regencies, with approximately 200 administrators receiving guidance. Dedi mentioned that this mentorship is part of KSP Balo’ta’s effort to help strengthen the capacity of cooperative managers at the village and sub-district levels.

Strengthening Synergy between KSP Balo’ta and KDKMP

Krisdianto assessed that KSP Balo’ta’s contribution through financing and mentorship is further expanding the benefits of the revolving funds distributed by LPDB Koperasi. He explained that the use of financing does not only target the regular business of KSP Blo’ta but can also support the KDKMP ecosystem. Members of KSP Balo’ta who eventually join KDKMP can obtain business financing support. The products generated have the potential to become part of the supply chain to meet the needs of KDKMP outlets.

“Members of Balo’ta, who will essentially also be members of KDKMP, will be assisted by the loans provided by Balo’ta, which originate from LPDB funds, to support their business activities,” he said. He noted that this pattern creates synergy between KSP Balo’ta and KDKMP, particularly in strengthening the economic activities of members and building a business supply chain at the village level. “This is clearly a very good synergy between KSP Balo’ta and KDKMP, which is a national strategic programme and a priority programme of the Ministry of Cooperatives,” he concluded.