Indonesia to place IDR83T funds in state banks for cooperatives

Indonesia to place IDR83T funds in state banks for cooperatives

Indonesia is set to allocate IDR83 trillion (approximately USD 5.8 billion) to state-owned banks to support cooperative development, according to recent government announcements. The move aims to enhance financial inclusion and promote economic growth by providing cooperatives with access to affordable credit and financial services.

The decision comes as part of the government's broader strategy to strengthen the cooperative sector, which plays a crucial role in rural development and poverty alleviation. The funds will be distributed among several state-owned banks, including Bank Rakyat Indonesia (BRI) [1], which has been actively expanding its services to support migrant workers and small businesses.

The allocation of funds to state banks is expected to facilitate better lending terms for cooperatives, enabling them to invest in infrastructure, technology, and other growth-enhancing initiatives. This, in turn, could lead to increased productivity and job creation, contributing to the overall economic development of the country.

The government's initiative also aligns with the international trend of promoting financial inclusion and supporting the cooperative sector. By providing cooperatives with access to affordable credit, the government aims to foster innovation and entrepreneurship, which are essential for sustainable economic growth.

The move is part of a series of measures aimed at strengthening the financial sector and promoting inclusive growth. In addition to the IDR83 trillion allocation, the government has also announced plans to enhance the regulatory framework for cooperatives and provide them with technical assistance to improve their operations.

As the cooperative sector continues to grow, the allocation of funds to state banks is expected to play a significant role in supporting its development. By providing cooperatives with access to affordable credit and financial services, the government aims to create a more inclusive and resilient economy.

References:
[1] https://www.morningstar.com/news/pr-newswire/20250814hk51456/bri-launches-taipei-branch-to-provide-financial-services-for-360000-indonesian-migrant-workers-in-taiwan