The Political Motive Behind the Red-and-White Cooperatives
“The scheme of loans from state banks backed by collateral of 20 percent of village funds could lead to systemic risks to the banking system. This year, the allocation for village funds is Rp71 trillion. This means that next year, banks will pay out Rp14.2 trillion to all these cooperatives. The value of these loans is three times the bailout funds paid to Bank Century in 2008 to head off a systemic banking crisis in Indonesia.”
“The two ministers who will manage the funding for the Red-and-White Cooperatives are the general chair and a politician respectively from the National Mandate Party (PAN): Zulkifli Hasan and Yandri Susanto. The handing over of large funds to politicians is prone to corruption and misuse for electoral purposes. Then there is the appointment of cooperative managers, which has been ‘allocated’ to Prabowo’s Gerindra Party and Projo, an organization of supporters of former president Joko Widodo led by Cooperatives Minister Budi Arie Setiadi.”
https://en.tempo.co/read/2001390/the-political-motive-behind-the-red-and-white-cooperatives