Purbaya 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.
Finance Minister Purbaya Yudhi Sadewa affirmed the government's commitment to funding the first round of installments for the Red and White Cooperatives debt, despite reports questioning the feasibility of the budget. The government has allocated Rp 40 trillion (US$2.26 billion) to service the Rp 37.7 trillion in installments due on September 25.
Speaking to reporters, Purbaya emphasized the importance of maintaining a healthy banking system, stating that there will be "no delay in paying up the government's installments." The program, backed by syndication financing from state-owned lenders, aims to establish 30,000 cooperatives by the end of the year. Bank Negara Indonesia, Bank Rakyat Indonesia, Mandiri, and Bank Syariah Indonesia have each contributed Rp 55 trillion to provide the syndicated loan with a 72-month, or six-year, tenor at a 6 percent lending rate.
The allocation for cooperatives debt servicing will now be routed through village funds, as mandated by the latest Finance Ministry Regulation.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
