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View all search resultsPurbaya reasserts budget for cooperatives debt
The government had reserved some Rp 40 trillion (US$2.26 billion) this year to pay the first round of installments due on Sept. 25, totaling Rp 37.7 trillion.
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A soldier sweeps the entrance to a Red and White Cooperatives building on July 22 in Suka Damai village, Muaro Jambi regency, Jambi. (Antara/Wahdi Setiawan)
F
inance Minister Purbaya Yudhi Sadewa has brushed off reports that the state budget does not have enough in the tank to service the debts incurred in loans for the Red and White Cooperatives and reassured that the government has set aside enough funds.
The minister spoke to reporters on Tuesday, saying the government had reserved some Rp 40 trillion (US$2.26 billion) this year to pay the first round of installments due on Sept. 25, totaling Rp 37.7 trillion.
“[There will be] no delay in paying up the government’s installments. We have to preserve the condition of our banking system,” Purbaya said, adding that “a special method” was in the cards to ensure the payment goes smoothly but failed to elaborate further.
The program is backed by syndication financing from state-owned lenders that in full scale was estimated to reach Rp 220 trillion, channeled via PT Agrinas Pangan Nusantara, a state-owned company responsible for constructing the physical infrastructure for the cooperatives program.
The initial goal was to establish 80,000 cooperatives nationwide before the sum was cut by half, 30,000 of which were slated to be operational by the end of the year.
Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI), Mandiri and Bank Syariah Indonesia (BSI) have each contributed Rp 55 trillion to provide the syndicated loan carrying a 72-month, or six-year, tenor at 6 percent lending rate.
The latest Finance Ministry Regulation ruled that the allocation for cooperatives debt servicing be routed via village funds, one of the state budget’s spending items, alongside the general allocation fund.
