The government has reaffirmed its commitment to building independent rural economies by accelerating the establishment of the Merah Putih Village Cooperatives (Koperasi Desa Merah Putih/KDMP).
Coordinating Minister for Food Affairs Zulkifli Hasan has set a target for 30,000 KDMPs across Indonesia to be ready for launch and fully operational by April 2026.
Zulkifli stated that between March and April 2026, the government expects around 20,000 to 30,000 KDMPs to be operating with complete facilities.
“By March–April 2026, we expect 20,000 to 30,000 Merah Putih Village Cooperatives to be ready and operational,” Zulkifli said.
He emphasized that KDMPs will not function merely as savings and loan cooperatives, but will also serve as distribution hubs for agricultural products and community-based enterprises. Through these cooperatives, rural micro, small, and medium enterprises (MSMEs) will be facilitated in distributing their products so they are more easily accessible to the public.
“The Merah Putih Village Cooperatives will become centers for distributing agricultural produce and community business products, while also bringing basic necessities closer to the people,” he explained.
KDMPs will also be integrated with various government programs, including the distribution of essential goods and the strengthening of food supply chains, as part of efforts to drive economic growth at the village and sub-district levels.
Meanwhile, Minister of Social Affairs Saifullah Yusuf, also known as Gus Ipul, emphasized that starting in 2026, social assistance policies will be directed toward strengthening the economic independence of beneficiary families (Keluarga Penerima Manfaat/KPM).
The government is encouraging KPMs to become directly involved in productive business activities through the Merah Putih Village and Urban Cooperative (Kopdeskel Merah Putih).
“Through this collaboration, we want to encourage all social assistance beneficiary families to become members of the Merah Putih Village Cooperatives. So they will not only receive assistance, but also be actively involved in business activities,” Gus Ipul said.
He explained that KPMs will be guided to market their products through the cooperatives while also fulfilling their basic needs at the Merah Putih Village and Urban Cooperatives. In this way, social assistance recipients will not only act as consumers, but also as cooperative business owners.
“Besides being consumers, they will also co-own KDMP shops and be entitled to receive a share of the cooperative’s annual surplus,” he added.
Minister of Cooperatives Ferry Juliantono assessed that this policy opens new opportunities for social assistance beneficiaries to increase their family income.
“Those who were previously beneficiaries can now be directly involved in business activities and receive a share of the cooperative’s income,” Ferry said.*