South Kalimantan Partners with LPDB to Ease Cooperative Capital Access
The Cooperatives and Small and Medium Enterprises (UKM) Office of South Kalimantan Province is striving to boost cooperative growth by facilitating easier access to capital. One step taken is partnering with the Revolving Fund Management Agency (LPDB) of the Ministry of Cooperatives to provide financing with affordable and competitive schemes for productive cooperatives in the region.
Head of Institutional Affairs at the South Kalimantan Cooperatives and UKM Office, Bambang Dedi Mulyadi, stated on Thursday (18/6) that access to capital remains the main obstacle faced by cooperatives in South Kalimantan, alongside professional organisational management. “The most important thing for cooperatives right now is ease of access to capital. We know there are still many cooperatives that have productive businesses but are constrained by capital,” he said.
In relation to this, the South Kalimantan Cooperatives and UKM Office has held Electronic Proposal Technical Guidance (Bimtek) for the LPDB and established communication with the LPDB of the Ministry of Cooperatives regarding financing programmes for cooperatives in South Kalimantan.
Bambang revealed that the LPDB offers financing ranging from Rp500 million to Rp250 billion with a scheme considered more lenient than conventional bank financing. “This is a non-profit institution specifically established to assist cooperatives. In terms of repayment and instalments, the scheme is much lighter, greatly supporting cooperative business development,” he explained.
Not only targeting urban cooperatives, the LPDB programme also opens opportunities for cooperatives in rural areas, including fishing and agricultural cooperatives. One example is a cooperative in the coastal area of Bekambat Village, Banjar Regency, which runs a fishermen’s fuel station and fertiliser distribution business. The cooperative requires additional capital to expand its operations, including plans to procure fishing vessels that will be jointly managed by local fishermen. “If the cooperative can add to its fleet, fishermen’s productivity will increase. The impact will be greater economic circulation in the village and improved community welfare,” he said.
The South Kalimantan Cooperatives and UKM Office is also compiling data on cooperatives deemed eligible for financing. This step is carried out through collaboration with district and city cooperative offices so that more productive cooperatives can benefit from the programme. The office hopes the presence of the LPDB can become a solution for cooperatives that have long struggled to obtain business capital, while supporting the acceleration of grassroots-based regional economic growth.
According to data from the South Kalimantan Cooperatives and UKM Office, as of 2024 there were 3,057 cooperatives in the province. This figure does not yet include the Koperasi Merah Putih (KMP) currently being vigorously established by the government in every village and sub-district. Of the total, 180 cooperatives are under provincial guidance. It is acknowledged that the majority of cooperatives face various obstacles, particularly capital, and many have become dormant.