Government Accelerates Operations of Red and White Village Cooperatives Across Indonesia

Jakarta – The government continues to accelerate the operations of Red and White Village Cooperatives (KDMP) across Indonesia as part of its strategy to strengthen the people’s economy and ensure equitable village development. This program is expected to be a crucial instrument in realizing village independence while improving community welfare through transparent and sustainable joint venture management.

The Deputy Minister of Villages and Development of Disadvantaged Regions, Ahmad Riza Patria, emphasized that cooperative administrative governance will be key to success. According to him, proposals for cooperative funding must be approved by village heads and tailored to individual needs.

“Village heads and their cooperatives must submit a maximum of Rp3 billion. The amount of funds disbursed will vary depending on the proposal and the needs of each cooperative,” said Riza.

He added that the government hopes the operations of the Red and White Village Cooperatives will strengthen the village economic base and accelerate equitable and inclusive development.

Regional government support is also evident, including from the West Kalimantan Provincial Government. The Regional Secretary of West Kalimantan, Dr. H. Harisson, M.Kes., stated that the West Kalimantan Provincial Government is committed to accelerating the operation of cooperatives in every district/city.

“The regional government is not only present to provide regulations, but also to provide technical assistance, coaching, and open access to financing through collaboration with banks and other financial institutions. Cooperatives must be the basis of a healthy and independent people’s economy,” Harisson explained.

A similar commitment also came from Tuban Regency, East Java. Tuban Regent, Aditya Halindra Faridzky, stated that his administration is pushing to accelerate the operation of the Merah Putih Village Cooperative in 328 villages/sub-districts within his region. He targets that by the end of 2025, all villages/sub-districts will have actively operating cooperatives.

“With clear administrative governance, it will be easier for cooperatives to apply for capital assistance and establish partnerships with state-owned enterprises (BUMN)/regional-owned enterprises (BUMD),” Aditya said.

Efforts to accelerate the operation of the Merah Putih Village Cooperative are an important part of the national development agenda based on village economic independence.

With full support from the central, provincial, and district/city governments, the existence of cooperatives is believed to be a driver of the local economy that is able to create new jobs, expand community business access, and strengthen national economic resilience.*