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View all search resultsGovt cuts corners on cooperatives program despite pending bill
Experts have criticized the move as a regulatory shortcut that risks legal inconsistencies, undermines the democratic principles of cooperatives and exposes them to poor governance and potential financial pitfalls.
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Indonesian Air Force personnel help a farmer carry harvested rice on Feb. 28 at a rice field near the Halim Perdanakusuma Air Force Base complex in Jakarta. (Antara/Reno Esnir)
T
he government is rushing to roll out the Red-White Cooperatives (KMP) program by July 19, even as the Cooperatives Law revision is still being deliberated at the House of Representatives.
Experts have criticized the move as a regulatory shortcut that risks legal inconsistencies, undermines the democratic principles of cooperatives and exposes them to poor governance and potential financial pitfalls.
The KMP is a flagship initiative of President Prabowo Subianto aimed at establishing 80,000 cooperatives across villages nationwide.
Coordinating Food Minister Zulkifli Hasan, who leads a special task force to expedite the program, told reporters on Wednesday that the President would inaugurate the initiative a week after National Cooperatives Day on July 12, because of conflicting travel schedules.
The announcement came after a closed-door cabinet meeting on Monday at Prabowo’s private residence in Hambalang, West Java, to iron out the program’s details.
Cooperatives Minister Budi Arie Setiadi said on the same day that 80,133 cooperatives had already been registered under the program.
These cooperatives will be eligible for loans of up to Rp 3 billion (US$183,723.60) each from state-owned banks, with total potential disbursements reaching Rp 400 trillion. The loans are to be repaid using village funds allocated through the state budget over a six-year period.
