Purbaya: Funds for Kopdes Sufficient, Provided There Is No Corruption

Minister of Finance Purbaya Yudhi Sadewa has confirmed that government funds are sufficient to support the operations of the Merah Putih Village Cooperatives (Kopdes). He emphasised that the budget is adequate, provided it is not lost to corruption. “It is enough. As long as it is not corrupted, it should be safe,” he stated.

Purbaya previously confirmed that the Merah Putih Village/Sub-district Cooperatives (KDKMP) would receive access to financing through bank loans worth Rp 3 billion. “Yes, Rp 3 billion,” he told reporters at the State Palace on Wednesday evening (15/7/2026).

The loan will be used to support the capital, operations, and business expansion of the KDKMP. Purbaya expressed confidence that the amount is sufficient for capital and operational needs. “But in my view, the capital is enough because they can take a sizeable amount from the bank. There is still some that hasn’t been used yet, so it should be available for additional operations if needed,” he explained.

Purbaya stressed that the government will ensure the timely repayment of the KDKMP loan instalments to the state-owned banks (Himbara) over a six-year period. The former head of the Indonesia Deposit Insurance Corporation (LPS) stated he would fulfil this obligation and assessed the risk as limited because the loan is guaranteed by village funds. “My obligation is to pay the KDKMP loan instalments to the Himbara banks. It will be cleared in six years. My risk is very limited because part of it is paid in instalments from the village fund, with two-thirds of the village fund going there,” he asserted.

According to CNBC Indonesia data, the Rp 3 billion capital loan ceiling per Merah Putih Village Cooperative (KDKMP) is provided by the state-owned banks (Himbara). This loan is stipulated in the Minister of Finance Regulation No. 49 of 2025. The loan has a maximum tenor of 72 months, or six years, with a grace period of six to eight months. The interest rate is set at 6% per annum. Of the loan amount, Rp 1.4 billion will be used for operational purposes, with the remainder allocated for capital expenditure and physical development.