Jakarta (ANTARA) - Indonesia’s sovereign wealth fund Danantara clarified that it is not responsible for financing the Red and White Village Cooperatives (KDMP) program, underscoring it as a government-funded initiative.
“It should be noted that Danantara’s role in this program is assisting the government in implementation. The funds used are sourced from the government, not Danantara,” Danantara Chief Operating Officer Dony Oskaria said in a statement here on Friday.
He acknowledged that President Prabowo Subianto often mentions Danantara when speaking about rural empowerment initiatives, noting that it manages the assets of several state-owned enterprises (SOEs) capable of supporting government strategic programs.
Even so, Oskaria underlined that the entity, also known as an investment management agency, does not necessarily mobilize funds for the KDMP program or other activities.
He further explained that the government typically handles budgeting for all works conducted by Danantara-affiliated SOEs under its programs, including KDMP.
Elaborating on the KDMP program, he said its primary goal is to foster a better ecosystem for rural economies to grow by stimulating economic activity.
“Village cooperatives are expected to streamline the distribution of fertilizers to farmers,” he said, adding that the government also envisions cooperatives working with state logistics firm Bulog to absorb farmers’ yields.
Oskaria then highlighted cooperatives’ role in providing savings and loan services, offering low-interest loans to villagers in collaboration with state-run microlender PNM.
President Prabowo, he continued, has instructed that loan interest rates be lowered from 24 percent to eight percent to improve accessibility for the broader public.
He further said the government is also responsible for guiding village cooperatives in their initial phase of operation, including through the selection and training of professional managers.
Bearing that in mind, he stressed that the KDMP program would not hinder Danantara’s activities.
“Danantara continues to carry out its core function as a commercial entity, while tasks assigned by the government are funded by the state under prevailing regulations,” he concluded.
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Translator: Putu Indah, Tegar Nurfitra Editor: Azis Kurmala Copyright © ANTARA 2026
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