By M Khaidar Khamzah, Editor at The Nusantara Times
Published: March 7, 2025
The Nusantara Times – Jakarta, March 3, 2025 – In a major initiative aimed at strengthening Indonesia’s rural economy, President Prabowo Subianto has announced the establishment of the Merah Putih Village Cooperatives (Koperasi Desa Merah Putih or Kop Des Merah Putih). This groundbreaking initiative seeks to establish cooperatives in 70,000 to 80,000 villages across the nation, marking a bold step toward improving agricultural productivity and enhancing economic self-sufficiency in rural communities.
During a cabinet meeting at the Merdeka Palace, President Prabowo stressed the importance of these cooperatives as crucial economic centers for villages. Coordinating Minister for Food Affairs, Zulkifli Hasan (Zulhas), provided further details, explaining that the cooperatives will serve as storage and distribution hubs for local agricultural products. “This cooperative system is designed to improve food security and create a more efficient distribution network, benefiting both producers and consumers,” said Zulhas.
A Comprehensive Strategy for Rural Empowerment
The Merah Putih Village Cooperatives will not only support farmers but also foster better economic integration within rural communities. The government plans to utilize existing village funds to finance the establishment of the cooperatives. Additionally, the State-Owned Bank Association (Himbara) will provide financing through installment plans lasting three to five years, ensuring the cooperatives are operational from the outset.
“Each village is expected to allocate a budget of around 3 to 5 billion Rupiah for this program, which will be complemented by the current village fund allocations,” said Minister Zulhas. “Over a five-year period, this will provide a solid financial foundation for the cooperatives to thrive.”
Transforming the Agricultural Sector
Minister of Cooperatives, Budi Arie Setiadi, outlined a three-pronged approach for the implementation of the Merah Putih Village Cooperatives. The first model focuses on establishing new cooperatives, the second on revitalizing existing cooperatives, and the third on expanding and developing these cooperatives further. Approximately 64,000 farmer groups are ready to transition into cooperatives, integrating agricultural systems and food distribution on a much larger scale.
“This will strengthen and unify the agricultural network,” said Setiadi. “By moving away from traditional distribution methods, we will streamline the supply chain, reducing costs for both producers and consumers.”
A Strong Foundation for Rural Prosperity
The Merah Putih Village Cooperatives aim to create a sustainable future for Indonesia’s rural regions. Minister of Village and Disadvantaged Regions Development, Yandri Susanto, emphasized that the initiative would be supported by revisions to existing regulations governing village fund usage, ensuring a more efficient approach to rural development.
“The focus is clear: to ensure that every village progresses and thrives,” said Susanto. “Strengthening the economy of each village will help build a stronger, more resilient Indonesia.”
A Vision for the Future
The government hopes that the establishment of the Merah Putih Village Cooperatives will transform rural Indonesia into a dynamic and prosperous region, where economic benefits reach every citizen. This initiative is designed to bridge the gap between rural producers and consumers, creating a more equitable and efficient agricultural system.
As the project moves forward, the government remains committed to monitoring its implementation to ensure it brings tangible improvements to the welfare of rural communities across the nation.
