Jakarta, June 12 -- 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 un...