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View all search resultsSuahasil opposes proposed plan to pay civil servant salaries via cooperatives
The finance minister has checked the government's latest move to try and expand the role of the flagship cooperatives program by doubling down on the current mechanism of bank transfers to pay civil servants' salaries.
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Finance Minister Suahasil Nazara speaks on Sept. 19, 2026, during the ministry’s monthly APBN Kita (Our state budget) press conference at its offices in Central Jakarta. (Government Communication Agency/- )
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alary payments for civil servants will continue to be made via bank transfer under the current mechanism, Finance Minister Suahasil Nazara has said, following a recent proposal to channel salaries through President Prabowo Subianto’s flagship Red and White Cooperatives program.
“[Civil servant salary payments] will remain as they are now. We will continue to process them via transfer, just as we do currently,” Suahasil said at the Presidential Palace Complex in Central Jakarta on Tuesday, as quoted by CNN Indonesia.
Read also: House member opposes plan to distribute civil servant salaries through cooperatives
Cooperatives Minister Ferry Juliantono said on Oct. 14 that a proposal to disburse civil servant salaries through cooperatives had been submitted to the Finance Ministry to refine the program’s implementation.
Though Ferry noted the proposed plan was to begin this year, he has not provided details on a potential timeline, the payment mechanism or which cooperatives would be involved.
The plan aims to enhance cooperatives’ scope of services as well as competitiveness and is linked to the cooperatives bill currently under deliberation at the House of Representatives.
According to the draft bill, the government plans to establish a cooperatives supervisory body separate from the Financial Services Authority (OJK) and to grant new functions to the Deposit Insurance Corporation (LPS) to protect public deposits held by cooperatives.
