Purbaya Regulates Credit for Village Cooperatives, Allowing Loans of Up to Rp3 Billion from Banks

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has revised the regulations concerning the funding scheme for Village/Urban Ward Cooperatives (Kopdes/Kel) Merah Putih. Under the new scheme, Kopdes can obtain financing facilities from banks with a maximum of Rp3 billion per unit.

This revision is outlined in Ministerial Regulation (PMK) Number 15 of 2026 on the Procedures for the Distribution of General Allocation Funds/Revenue Sharing Funds or Village Funds in the Context of Accelerating the Physical Development of Outlets, Warehouses, and Equipment for Kopdes/Kel Merah Putih.

The regulation takes effect from 1 April 2026 and revokes the previous regulation under PMK Number 49 of 2025.

In Article 2 Paragraph (2), the financing limit by banks is set at a maximum of Rp3 billion per Kopdes/Kel Merah Putih outlet unit. Regarding the bank credit facilities, the interest rate remains fixed at 6% per year with a tenure of 72 months.

However, this PMK provides more flexible grace periods by allowing a financing grace period of 6-12 months, which is longer than the previous regulation that limited it to a maximum of 8 months.

Article 2 Paragraph (4) stipulates that instalment payments, including interest, are made through General Allocation Funds/Revenue Sharing Funds (DAU/DBH) every month or paid in a lump sum annually using the portion of Village Funds.

“The distribution of DAU/DBH or Village Funds for the payment of all obligations arising from the implementation of activities to accelerate the physical development of outlets, warehouses, and equipment for Kopdes/Kel Merah Putih is carried out based on the principles of transparency, accountability, prudence, and performance-based,” states Article 3.

With this revision, the ownership status of assets has also changed. Under this regulation, all outlets, warehouses, and equipment of Kopdes/Kel Merah Putih resulting from such financing are legally considered assets owned by local governments or village governments.

“Outlets, warehouses, and equipment of Kopdes/Kel Merah Putih resulting from the financing as referred to in paragraph (1) become assets of local governments or village governments,” states Article 2 Paragraph (6).