Jakarta, May 23 -- Coordinating Minister for Food, Zulkifli Hasan, has clarified that the Rp3 billion (approximately US$184,457) initial fund for the operations of Red and White Village Cooperatives will not be sourced from the state budget, but via loans.

At a press conference here on Friday to clear the air regarding the sources of the cooperatives' initial funding, Hasan said that once they are formed, the cooperatives can apply for loans to state-owned banks for funding their operations.

"The initial Rp3 billion is the loan ceiling. It may be fully utilized or not," he added.

According to Hasan, the loans can be used for six types of cooperative businesses, including LPG and fertilizer sales.

The minister explained that the loan c...