Jakarta, Sept. 15 -- The government will reduce the interest rate on Rp200 trillion in funds placed in state-owned banks to support Red and White Village Cooperatives, Finance Minister Purbaya Yudhi Sadewa announced on Monday.

Speaking after a press briefing at the Presidential Office, Sadewa explained that the funds are immediately accessible once cooperatives are ready to distribute them-now with lower interest rates for participating banks.

"If the funds are used for Red and White Cooperatives, the interest charged to banks will automatically drop to 2 percent from the previous 4 percent. This means there will be no additional cost burden for state-owned Himbara banks," he said.

The policy is designed to ease financial pressure on b...