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View all search resultsWhile Indonesia’s Red and White initiatives aim to revitalize cooperatives as constitutional cornerstones of the economy, empirical data reveals a sector struggling to translate scale into growth. True economic sovereignty will require shifting the focus from administrative expansion to high-value productivity and human capital reform.
The report, published on Tuesday by AidData, a research lab at US university William & Mary, said China's lending and grant giving totalled $2.2 trillion across 200 countries in every region of the world from 2000 to 2023.
The scheme will offer interest rates as low as 0.5 percent to regional administrations with eligible projects and will be channeled through state-owned infrastructure financing firm PT Sarana Multi Infrastruktur (SMI).
A new regulation allowing regional administrations and region- or state-owned enterprises (SOEs) to borrow money from the central government entails opportunities for local authorities but also poses risks to fiscal discipline, economists say.
Bank Indonesia has kept its benchmark interest rate in place after decreasing it by 25 basis points (bps) in each of the past three months, but the central bank is open for further cuts to encourage lending and push economic growth to its true potential.
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