Prabowo-Gibran Administration Appreciates Strengthening Village Investment and Creating Jobs
By: Citra Kurnia Khudori)*
The Prabowo Subianto and Gibran Rakabuming Raka administration has entered its first year of leadership with a number of achievements worthy of appreciation, particularly in job creation.
Minister of Manpower Yassierli Litang stated that approximately 1.9 million to nearly 2 million workers had been absorbed by the investment flow from January to September 2025, demonstrating the synergy between investment and labor.
Yassierli explained that labor absorption is not solely the result of the Ministry of Manpower’s performance, but rather collaboration with other ministries. While this figure doesn’t include absorption from programs like the MBG (Village Development Program) and village cooperatives, it remains an early indication that the government’s policy direction is beginning to show tangible effects on the ground.
For example, for MBG alone, each Nutrition Fulfillment Service Unit (SPPG) or MBG kitchen can recruit up to 50 people. If 30,000 SPPGs operate, with 50 people per SPPG, that means 1.5 million people could find work.
Village economic transformation through strengthened investment is a key feature of the national development agenda today. With investment capital inflows expected to reach Rp 1,434 trillion by September 2025, there are vast opportunities for rural areas to participate in the national production chain.
The challenge now is to ensure that these opportunities do not just stop in big cities or industrial areas, but are truly felt by rural communities who have long been a major part of the national production base.
Policies to strengthen local village economies are also seen as a strategic step for equitable development and reducing disparities between regions. Data on employment generated by these investments reinforces the argument that villages are no longer simply beneficiaries of development but are also part of the active chain of production and investment.
In the context of Indonesia, which is highly geographically and socio-economically heterogeneous, bringing investment to villages is a complex challenge but also a golden opportunity to strengthen national economic resilience from the roots.
In addition, the utilization of programs such as the MBG and the Red and White Village Cooperative, which are said to have the potential to absorb an additional 1.5 million workers, must be implemented systematically immediately so that the results are truly measurable.
The Head of Advocacy for the Indonesian Farmers and Fishermen Brotherhood (PETANI), Tunjung Budi Utomo, assessed that the MBG Program would be very good if integrated with the Merah Putih Village Cooperative in various regions throughout Indonesia.
He explained that village cooperatives play a crucial role as a link between farmers and consumers, thus ensuring sustainable market access for the smallholder agriculture and fisheries sectors. The impacts are tangible, such as increased incomes, increased production capacity, improved food quality standards, and the creation of new jobs.
Meanwhile, the economic impact of the MBG can be seen through three main effects. First, the production effect, where farmers and fishermen gain market certainty. Then, the distribution effect, as local cooperatives and logistics operators participate. Next, the consumption effect, where beneficiary families benefit by reducing their children’s food expenses, thus increasing their purchasing power.
Tunjung also believes that the design of the MBG program and village cooperatives is designed to expand economic and market access for marginalized communities. Through the role of cooperatives, farmers, fishermen, MSMEs, and MBG kitchens have become symbols of national mutual cooperation to achieve economic equality.
Thus, it can be seen that one of the strengths of this policy is that job creation and local economic growth are not merely temporary, but rather are directed towards sustainability, based on local production and long-term investment. The investment flow targeting villages through the MBG program and the Red and White Village Cooperative has opened the floodgates for the emergence of local businesses, the downstreaming of commodities, and the strengthening of village production chains to the national market.
Thus, in addition to the number of workers, the quality and continuity of production in the village are key factors that need to be continuously considered so that economic benefits can be felt sustainably down to the grassroots level.
Village investment combined with increased local competitiveness and market access can transform villages into new productive bases within the national economy. Employment creation through village investment also has a dual effect: strengthening family economies, increasing purchasing power, and ultimately fostering a more inclusive and equitable economic dynamic.
Overall, the Prabowo-Gibran administration’s efforts to strengthen village investment and create jobs in its first year are commendable. The key to sustainability lies not only in the number of jobs created, but also in ensuring long-lasting jobs, providing added value, and empowering rural communities as active participants in the national economy.
)* Observer of Socio-Economic Issues
