Indonesia to Use APBN to Repay Rp240 Trillion Kopdes Merah Putih Debt

Indonesia's Ministry of Finance announced that the state budget (APBN) will be used to repay the Rp240 trillion loan taken to fund the Kopdes Merah Putih village‑cooperative program. Finance Minister Purbaya Yudhi Sadewa said the government will allocate roughly Rp40 trillion of principal each year for six years, with the first payment scheduled for September 2026. The scheme covers about 80,000 cooperatives, each receiving up to Rp3 trillion in financing, and will be coordinated with the Financial and Development Supervision Agency (BPKP), Danantara, and participating banks. Villages will continue to receive one‑third of cooperative profits and retain assets, ensuring ongoing benefits for rural communities.