Ministry of Cooperatives allocates Rp17 billion in soft loans for cooperatives in Kediri
The Ministry of Cooperatives is providing soft loans to develop business units within cooperatives in the Kediri Regency, East Java, amounting to Rp1 .7 trillion to meet factory requirements and expansion needs.
“We are providing financial support through the revolving fund management agency for processing activities. Machinery is required here,” stated Minister of Cooperatives Ferry Juliantono in Kediri on Saturday.
During the signing of a Memorandum of Understanding (MoU) between the Putra Harapan Jaya Kediri Marketing Cooperative and the Kana Lautan Berkat Consumer Cooperative, the Minister emphasised the government’s strong support for the production sector. He noted that this initiative aligns with the vision of President Prabowo Subianto, as the Ministry continues to encourage cooperatives to return to the production sector.
“In the near future, the final product produced here, which is brown sugar, will be used as a raw material. The Kana Consumer Cooperative will establish a soy sauce factory,” he added.
The government is providing these low-interest loans to support the cooperatives’ plans, with an initial disbursement of Rp17 billion. The government also intends to conduct further assessments once new factory construction is underway, with plans to increase funding based on the cooperatives’ needs.
On average, the Ministry of Cooperatives allocates approximately Rp2 trillion annually to support the business development of cooperatives. Beyond the cooperatives in Kediri, other cooperatives across Indonesia are also receiving access to these soft loan facilities for both the real and production sectors. The Minister added that the government is encouraging the establishment of factories for products such as soy sauce, sauce, and sambal, which can eventually be sold through the Merah Putih Village Cooperative (KDMP). He also expressed appreciation for these cooperatives’ ability to absorb sugarcane from farmers, noting that this demonstrates a healthy economic ecosystem.
Jonathan Danang Wardhana, Chairman of the Kana Marketing Cooperative, stated that government support is vital for the progress of cooperatives. “We are grateful for the support from the government through the Ministry of Cooperates and the LPDB (Revolving Fund Management Agency), so that cooperatives can elevate their status and compete with large industries,” he said. He noted that their primary product is brown sugar, with a current production capacity of 50 tonnes per day serving East Java. With government support, they aim to increase capacity to between 100 and 150 tonnes per day, using the sugar as raw material for soy sauce production.
Desi Permatasari, Chairman of the Putra Harapan Jaya Kediri Marketing Cooperative, also expressed appreciation for the partnership, explaining that the collaboration is a concrete step toward building mutually beneficial synergy between farmers and economic actors, ultimately improving welfare and supporting national sugar growth.