inp.polri.go.id - Jakarta. Vice Minister of Villages and Development of Disadvantaged Regions Ahmad Riza Patria stated that one measure of the success of the Merah Putih Village Cooperative (Kopdes Merah Putih) is that it does not use village funds, even though regulations allow such support for loan repayment.

"One measure of the Village Cooperative's success is that it does not use village funds for repayment," said the Vice Minister on Thursday (9/25/2025).

He reminded village heads and cooperative administrators to ensure that all cooperative business units are profitable. 

"This cooperative must make a profit. It cannot afford to lose even more money, even if there is support for repayment from village funds. However, we hope that as much as possible the cooperative will not use village funds," he said.

Regulation of the Minister of Villages and Development of Disadvantaged Regions Number 10 of 2025 stipulates that the village government can provide support for the repayment of the Merah Putih Village Cooperative loan if the balance in the loan repayment account is insufficient to cover the principal and interest/margin/profit sharing installments due according to the agreement.

This support is sourced from village funds, taking into account the village's financial capabilities and strategic needs, with a maximum limit of 30 percent of the village fund ceiling per year.

Previously, the Minister of Villages, Disadvantaged Regions and Transmigration, Yandri Susanto, asked village heads to be more careful when approving village cooperative loans based on the results of special village deliberations to prevent losses.

(ad/ndt/pr/rs)