Jakarta – The government continues to accelerate the establishment and strengthening of Village Cooperative Merah Putih (Koperasi Desa Merah Putih) as a key driver of national economic equality. Through Presidential Instruction (Inpres) No. 9 of 2025, the government aims to form tens of thousands of cooperatives across the country to reinforce rural economic structures and reduce interregional disparities.
The program positions cooperatives as the center of people’s economic activities at the village level, encompassing the distribution of basic necessities, fertilizer and LPG supply, as well as microfinance services. In addition to building retail and warehouse infrastructure, the government is rolling out cooperative management training and supply chain integration programs to foster greater economic independence among rural communities.
As of October 2025, data shows that more than 15,000 Village Cooperative Merah Putih units are already in active operation across Indonesia. The government targets the establishment of 80,000 units by the end of next year.
Minister of Cooperatives and SMEs Maman Abdurrahman emphasized the crucial role of village cooperatives as the main engine of people’s economic empowerment.
“Village Cooperative Merah Putih is not merely a symbol of rural economic revival but a concrete instrument providing access to capital, markets, and training for villagers. To date, 7,923 physical development points for Village Cooperative Merah Putih have been initiated, including retail outlets, warehouses, and community service centers,” he said.
Meanwhile, President Prabowo Subianto asserted that the program is part of the government’s broader vision to realize national economic self-reliance.
“The Village Cooperative Merah Putih program is our effort to liberate the people from poverty and inequality. I want economic growth to begin from the grassroots — from strong and independent villages,” he affirmed.
Although the initiative has received widespread support, the government acknowledges several challenges that remain to be addressed — including the need to strengthen cooperative governance, enhance the capacity of human resources in villages, and ensure oversight of revolving fund management. To that end, the government is preparing additional technical regulations to ensure that cooperative management is conducted transparently and accountably across all regions.
With strong inter-ministerial synergy and the support of local governments, the Village Cooperative Merah Putih initiative is expected to become a cornerstone of economic equality and rural independence throughout Indonesia.
