Klaten – The Merah Putih Village Cooperative (KDMP) and Merah Putih Urban Cooperative (KKMP) mark a strategic step by the government to strengthen rural economies in Indonesia. A total of 80,081 cooperatives were officially launched on July 21, 2025, by President Prabowo Subianto at the Merah Putih Village Cooperative in Bentangan, Klaten, Central Java.
According to President Prabowo Subianto, cooperatives serve as a tool for the disadvantaged to turn weakness into strength, thereby achieving economic independence.
The president likened the concept of a cooperative to a bundle of sticks — a single stick is weak, but when dozens or hundreds are bound together, they become strong. In the same way, mutual cooperation within a cooperative can transform a weak economy into a strong one.
The launch of KDMP/KKMP aims to address food distribution challenges and harmful practices that disadvantage farmers and rural communities. The program is expected to strengthen the economy from upstream to downstream and improve the overall welfare of rural populations.
Presidential Office Economic Spokesperson Fithra Faisal stated that KDMP/KKMP encourages the creation of various economic opportunities in rural areas while improving farmers’ welfare.
He noted that one of the main problems faced by farmers is the low price of unhusked rice, caused by inadequate drying and storage infrastructure, limited market access, dominance of middlemen, and fertilizer shortages.
“The cooperative includes seven essential outlets as the foundation of its operations: a grocery store, village pharmacy, village clinic, cooperative office, savings and loan unit, cold storage/cold chain outlet, and a logistics outlet to ensure smooth distribution of goods. These outlets can be developed further according to each village or urban area’s local potential,” explained Fithra Faisal.
The Merah Putih Cooperative brings several benefits, including improving rural community welfare, creating jobs, providing systematic and fast services, lowering consumer prices, raising farmers’ selling prices, and helping reduce extreme poverty and inflation.
“This is a holistic economic improvement initiative by the government. From upstream to downstream, from villages to cities. This will become a holistic and participatory economy,” said Fithra.
Villagers have welcomed the cooperative’s presence. At the launch in Bentangan, Klaten, local housewives and small business owners expressed hope that the cooperative would help resolve price and distribution issues for essential goods.
“This cooperative keeps the economy running more smoothly and makes shopping easier and faster,” said Fithra.
Meanwhile, KDMP Bentangan Chairman Bambang Gunarsa explained that the cooperative he leads is a national program initiated directly by President Prabowo Subianto. It partners with various state-owned enterprises (BUMN) to provide villagers with essential goods.
“God willing, our village’s daily needs can be met through this cooperative,” said Bambang Gunarsa.
In addition to groceries, the cooperative offers clinic services, a pharmacy, savings and loans, LPG, fertilizers, and postal services. Prices are set according to the government’s maximum retail price (HET), including for LPG and fertilizers, making the cooperative competitive with nearby shops.
With the Merah Putih Cooperative, rural economies are expected to grow faster and more sustainably, delivering broad benefits to communities across Indonesia.