Jakarta, Aug. 5 -- Coordinating Minister for Food Affairs Zulkifli Hasan has emphasized that village funds provided by the central government should not be used as collateral to secure capital loans for Red and White Village Cooperatives from state-run banks.

"Village funds are not to be placed as collateral," he reiterated at a press conference on the harmonization of regulations concerning the Red and White Village Cooperatives program at his office in Jakarta on Tuesday.

He elaborated that instead of relying on those funds, village cooperatives should use the items they procure with the loans as collateral.

"For instance, loans used to obtain staple goods will be guaranteed by the staple goods, while those used to purchase cars will...