Minister: KDKMP Savings and Loan Services Await Presidential Regulation

Jakarta (ANTARA) - Cooperatives Minister Ferry Juliantono has said that the savings and loan business unit of the Red and White Village/Neighbourhood Cooperatives (KDKMP) cannot yet be operated widely, as the government is still awaiting the issuance of a Presidential Regulation (Perpres) on cooperative operations.

Ferry said the savings and loan service is one of the business units designed within the Red and White Cooperative business model. However, its implementation is still awaiting the completion of regulations that would serve as the legal basis for its operations.

“At present, the draft Presidential Regulation on KDKMP operations is still being discussed among the relevant ministries and stakeholders to formulate its governance and implementation mechanism,” Ferry said when contacted by ANTARA in Jakarta on Friday.

Once the regulation has been established, Ferry said the savings and loan services would be implemented in stages.

The government is targeting around 40,000 KDKMPs to be operating by the end of 2026. In line with this target, the government also expects these cooperatives to run six core business outlets as part of the KDKMP business model.

The six outlets are staple food shops, village pharmacies, village clinics, savings and loan business units, cooperative offices, as well as warehousing and logistics.

“Specifically for financial or savings and loan services, implementation is still awaiting the completion of regulations, so at the moment its rollout is not yet uniform across all cooperatives,” Ferry said.

Physical construction of the cooperatives continues to progress. Of the 35,856 verified plots of land, 16,531 cooperatives have been 100 per cent completed, while 18,855 locations are still under construction.