Prabowo: 'Red and White' Village Cooperatives to Distribute Super Micro Credit at 8% Interest

President Prabowo Subianto has confirmed that the ‘Red and White’ Village Cooperatives (Kopdes Merah Putih) will become integrated rural economic service centres, including the distribution of micro-scale credit with attractive interest rates. He made the statement during the peak celebration of the 79th National Cooperatives Day (Harkopnas) in Jakarta on Sunday. Prabowo explained that the Kopdes Merah Putih would not only function as savings and loan cooperatives funded by member deposits but would also provide micro and super micro credit services. ‘The cooperatives will not only be for savings and loans; there will be cheap credit outlets, micro credit, and super micro credit,’ Prabowo said. He noted that one of the financing facilities available at Kopdes Merah Putih would be the unsecured Mekaar credit scheme, allowing the public to access financing at an interest rate of 8 per cent per year. ‘The interest rate, which was originally 22 per cent, I have reduced to 8 per cent. Compared to 22 per cent, 8 per cent is quite good, isn’t it?’ he added. Beyond providing access to financing, Prabowo explained that Kopdes Merah Putih would be developed as an integrated village economic service centre. Various facilities will be available in one location, including a grocery store, savings and loan services, a village pharmacy providing affordable generic medicines, a logistics centre, warehouses, and cold storage to maintain the quality of agricultural, plantation, and fishery products. Prabowo also stressed that Kopdes Merah Putih would become the main channel for distributing various government-subsidised goods to ensure they reach the right recipients. He asserted that all subsidised goods must be received directly by the entitled communities and must not be traded.