LPDB promotes joint financing scheme to strengthen red and white cooperatives
Jakarta (ANTARA) - The Revolving Fund Management Agency for Cooperatives (LPDB) is promoting the implementation of a joint financing scheme to strengthen capital access for red and white cooperatives.
LPDB Cooperatives Business Director Oetje Koesoema Prasetia stated that collaboration in financing between LPDB, cooperatives, and banks is key to building an inclusive and sustainable financing system.
“In line with the Minister of Cooperatives’ directives, we are promoting financing collaboration between LPDB, cooperatives, and banks under the joint financing scheme. This way, village and sub-district cooperatives will not only grow but also have resilience and competitiveness in the long term,” Oetje said in an official statement in Jakarta on Tuesday.
Joint financing is a shared financing scheme by several institutions for the same business or project, thereby increasing funding capacity and sharing risks.
According to Oetje, strengthening partnership-based financing is part of the national strategy for cooperative development based on an ecosystem, where larger cooperatives act as drivers for grassroots-level cooperatives.
This model has begun to be implemented through the role of the Tanaoba Lais Manekat (TLM) Savings and Loan Cooperative in Kupang, East Nusa Tenggara, which serves as a “big sibling” to red and white village cooperatives in several eastern Indonesian regions.
Oetje explained that with assets reaching Rp1.2 trillion, the TLM Cooperative not only carries out savings and loan functions but also diversifies into real sector businesses and provides assistance to village cooperatives, including through product provision, consignment schemes, and strengthening member business capacity.
Assistance to the Manulai II Red and White Village Cooperative in Kupang, East Nusa Tenggara, is cited as a concrete example of partnership model implementation that is starting to drive increased economic activity while expanding the local cooperative’s turnover potential.
Meanwhile, Minister of Cooperatives Ferry Juliantono affirmed that the government is promoting the strengthening of village cooperatives through synergies among various parties, including LPDB and large cooperatives.
“I have instructed LPDB and the Tanaoba Lais Manekat Savings and Loan Cooperative to jointly assist in developing village and sub-district level cooperative businesses, from expanding operations to strengthening capital financing,” Ferry said.
He added that the presence of red and white cooperatives in tens of thousands of villages is expected to become an instrument to encourage village communities to become active economic actors with broader capital access support.