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View all search resultsRural co-ops to enjoy interest rate of just 6% on KMP microloans, Zulkifli says
As the government rushes ahead to meet the KMP program's launch date on July 21, it risks leaving behind necessary legal support, including a Finance Ministry regulation currently being drafted and the Cooperatives Law revision being deliberated at the House.
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Field check: Former Trade Minister Zulkifli Hasan visits Klender traditional market in East Jakarta on June 22 to check the prices of basic commodities, especially cooking oil.
(Courtesy of /Trade Ministry)
P
resident Prabowo Subianto’s ambitious Red-and-White Cooperatives (KMP) program will be funded through the government’s microcredit (KUR) scheme at an annual interest rate of 6 percent, a senior minister has said.
KMP participants would enjoy “a KUR interest rate of at least 6 percent per year,” Coordinating Food Minister Zulkifli Hasan told a press briefing in Jakarta on Tuesday, as quoted by Bisnis.com, adding that the cooperatives program would be funded via state-owned banks.
At the same event, Deputy Cooperatives Minister Ferry Juliantono said each participating cooperative was eligible to receive a loan of up to Rp 3 billion (US$184,000).
The KMP scheme aims to provide rural cooperatives with access to affordable capital while exercising financial prudence and building long-term sustainability. It offers microloans with a six-year tenor for working capital and a 10-year tenor for investment.
A grace period of six months has been proposed to support cooperatives during their start-up phase.
Meanwhile, Cooperatives Minister Budi Arie Setiadi emphasized that KMP participants must present viable and productive business plans.
“The important thing is to have a clear and realistic business plan. We want to ensure that every fund disbursement has a direct impact on the community,” he said.
