Gov’t to Give Revolving Fund to Cooperatives

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 6 Agustus 2020
Category: News
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Loan for Working Capital provided in the National Economic Recovery progrm for Micro, Small, Medium-sized Enterprises. (Photo by: Ministry of Finance)

Minister of Cooperatives and Small and Medium-sized Enterprises Teten Masduki has issued a Regulation to provide revolving fund of up to Rp100 billion for one cooperative which is sourced from the Revolving Fund Management Agency (LPDB).

“We will raise revolving fund for cooperatives so that one cooperative could receive up to Rp100 billion,” the Minister said in a meeting between the LPDB and Baitul Maal wat Tamwil (BMT) Association and Technical Guidance on revolving fund, in Yogyakarta, Wednesday (5/8).

He went on to say that previously procedures to receive revolving fund were quite complicated. Now, however, the LPDB has carried out reforms so that cooperatives accross the country can easily apply for the fund.

Approximately Rp1 trillon of National Economic Recovery budget which is allocated for the LPDB is expected can be disbursed totally to the public by September 2020.

On that occasion, Teten expressed hope that cooperation and synergy among the LPDB and sharia-based financing body Baitul Maal wat Tamwil (BMT) can serve as a model to distribute the fund to Micro, Small, Medium-sized Enterprises (MSMEs) through cooperatives.

“We have managed more than 60 million MSMEs in Indonesia. Therefore, I want to channel the fund including to the BMT whose members are mostly MSMEs,” the Minister said adding that the BMT also provides business guidance to MSMEs.

On the same occasion, Secretary General of the Indonesian BMT Association Mursida Rambe asserted that the technical guidance is attended by 25 BMT from 5 provinces. So far, the LPDB received 12 proposals for revolving fund.

Therefore, Mursida expected the LPDB can distribute the fund immediately since it is highly needed by cooperatives to move the MSMEs.

To date, there are 322 Baitul Maal wat Tamwil (BMT) members of Indonesian BMT Association in 9 provinces consisting of four million people and 1,610 traditional markets. (Ministry of Cooperatives and Small and Medium Enterprises /EN)

 

 

Translated by : Rany Anjany
Reviewed by: Mia Medyana

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