Pocket Book for Merah Putih Village Cooperative Financing

Cooperatives play a vital role in the economy of villages and sub-districts. Amidst evolving economic challenges, cooperatives can serve as a solution to empower local economies, provide financial access, and improve community welfare. One form of financing that supports the success of village-level cooperatives is the Merah Putih Village Cooperative (Kopdes) Financing Pocket Book. This guide aims to provide clear instructions for cooperatives seeking to access financing under government regulations.

Objectives and Benefits of the Financing Pocket Book

The Merah Putih Kopdes Financing Pocket Book was compiled to help cooperatives understand and implement the financing program. This funding is intended not only to increase the capacity of cooperatives in developing productive businesses but also to expand their role in basic need distribution, community services, and community-based economic strengthening.

This book refers to several key regulations, including Minister of Finance Regulation (PMK) No. 49 of 2025, which governs the procedures for loans dedicated to village and sub-district cooperative funding. It provides a structured framework for the financing application process.

The primary benefit of this guide is to provide cooperative managers with an easy understanding of the application process while ensuring compliance with legal provisions. With this guide, cooperatives are expected to utilize available funds efficiently to scale their operations.

Application Procedures for Merah Putih Village/Sub-district Cooperative Financing

To obtain financing, cooperatives must follow established procedures designed to maintain administrative control and ensure effective fund utilization. The steps include:

1. Registration and Data Verification: Cooperatives must register and verify their data through the SimKopDes application, provided to streamline the administrative process.
2. Business Proposal Preparation: Cooperatives must prepare a business proposal to be submitted to the Regent/Mayor or Village Head for approval. This proposal serves as the basis for determining the cooperative’s eligibility.
3. Village/Sub-district Assembly (Musdes): Approved business proposals must be presented in a Village Assembly (Musdes) or Sub-district Development Assembly (Musbangkel) to gain community approval for fund usage.
4. Bank Verification and Feasibility Study: After local approval, the proposal is submitted to the bank for a feasibility study. If eligible, the bank will prepare a credit agreement.
5. Signing of the Credit Agreement: Once approved, the cooperative and the bank sign the agreement, and funds are disbursed according to the approved proposal.

Product Features of Merah Putih Cooperative Financing

The financing available is categorized into two main types, designed to support both daily operations and long-term expansion:

• Working Capital Credit (OPEX): Used to fund operational needs, such as raw material procurement and routine costs.
• Investment Credit (CAPEX): Used for fixed asset investment, such as purchasing machinery, vehicles, or buildings required to increase business capacity.

Financing can reach a maximum amount of Rp 3 billion, with flexible loan tenors up to 72 months. Banks also offer a Top-Up facility for cooperatives requiring additional funds, provided previous loans have been well-managed for at least 6 months.

Eligibility Criteria and Requirements

To access this financing, cooperatives (both KDMP and KKMP) must meet specific criteria:

1. Cooperative Criteria:
   • Must be actively operating and not listed on the National Blacklist for the last year.
   • Possess clear and transparent financial statements with a clean SLIK (Financial Information Service System) record.
2. Required Documents:
   • Tax ID (NPWP), Business ID (NIB), and Deed of Establishment.
   • Validation of management and supervisors from relevant authorities.
   • An approved business proposal from the village or sub-district government.

Additionally, the cooperative must be registered as a Branchless Banking Agent (Laku Pandai) at the lending bank and receive guidance from the Office of Cooperatives.

Advantages of Accessing Merah Putih Kopdes Financing

1. Simplified Access: Clear guidelines make the application process easy to navigate.
2. Affordable Interest Rates: The program offers highly competitive rates at only 6% per annum.
3. Top-Up Facilities: Flexibility to increase credit limits for growing businesses.
4. Government Support: Backed by policies ensuring guidance from the Office of Cooperatives and legal access to village funds.

Guidance and Supervision

The Merah Putih Cooperative Financing Pocket Book emphasizes the importance of continuous mentoring. The government, through the Office of Cooperatives, provides guidance from the preparation stage to post-disbursement. This ensures that funds are used effectively and minimizes the risk of mismanagement.

Conclusion

The Merah Putih Village Cooperative Financing Pocket Book is an essential tool for local cooperatives to secure the funding needed for growth. By providing a systematic and clear guide, it ensures that cooperatives follow the correct procedures and utilize financing appropriately, ultimately contributing to local economic growth and the welfare of village and sub-district communities.