Video: 20 Years Advancing Cooperatives, LPDB Supports Migrant Worker Cooperatives

The revolving financing or credit distributed by the Revolving Fund Management Institution for Cooperatives (LPDB) can be accessed by all types of cooperatives, whether savings and loan cooperatives or non-savings and loan cooperatives, throughout Indonesia.

LPDB sets requirements for the distribution of this financing and the use of the credit for working capital and investment capital, ranging from Rp 500 million to Rp 250 billion per cooperative, at an interest rate of 6.5% per annum with no provision fees or administrative charges. In addition, LPDB also provides a sharia financing scheme with a 70:30 profit-sharing ratio, tenors of 3 to 10 years, and payment methods that can be tailored to the business model.

LPDB is encouraging the development and transformation of cooperatives as economic institutions that carry out community business activities and are run by the younger generation, or Gen Z, so that they become more modern and operate in more diverse sectors.

It is hoped that the development of cooperatives can become a pillar of the economy that improves the welfare of members and the wider community, as well as creating employment opportunities, including through Migrant Worker Cooperatives.

What role does LPDB play in advancing cooperatives and the Indonesian economy? Watch the full dialogue between Shafinaz Nachiar and the Managing Director of the Revolving Fund Management Institution for Cooperatives (LPDB), Krisdianto Soedarmono, on Profit, CNBC Indonesia.