JAKARTA – The government has taken a monumental step to strengthen rural economic self-reliance and promote equitable social welfare. A total of 20 million beneficiaries of various social assistance programs will be directed to become members of Merah Putih Village Cooperatives (Kopdes Merah Putih), a national strategic initiative launched by President Prabowo Subianto through Presidential Instruction No. 9 of 2025.
The Regent of Gresik, Fandi Akhmad Yani, officially introduced the program with adaptations to local needs. Yani stated that the Merah Putih Cooperatives would be managed collectively by the community, rooted in consensus, and focused on empowering grassroots groups such as farmers, fishermen, small traders, and MSME actors.
“Merah Putih Cooperatives are not just formal institutions; they are tools for building a people-centered economy. These belong to the community—not the government. These cooperatives will serve as faster and more transparent channels for distributing social assistance, without the need for ceremonial bureaucracy,” Yani emphasized.
Minister of Social Affairs, Saifullah Yusuf (Gus Ipul), expressed strong support for the program. He noted that 20 million beneficiaries of the Family Hope Program (PKH) and Food Assistance Program have enormous potential as cooperative members and product suppliers. Furthermore, 7,242 PKH “graduated” beneficiaries have been identified as suitable to take on leadership roles within the cooperatives.
“We’ll encourage them not only to be cooperative members but also to become business actors within the cooperatives. The Ministry of Social Affairs has prepared 33,000 PKH facilitators and thousands of social welfare workers to support the implementation of this program,” said Gus Ipul.
At the national level, the government targets the establishment of 80,000 Merah Putih Village Cooperatives by July 12, 2025. The Ministry of Cooperatives estimates that around 400,000 cooperative managers will be required, who will undergo hybrid training to ensure professional and effective management.
According to Ahmad Zabadi, Secretary of the Ministry of Cooperatives, the estimated number of cooperative managers across the country could reach 1.2 million, considering additional staff and operators. Each cooperative will have at least five core managers who will receive structured training from the Ministry to ensure competence in managing business operations.
“Based on our projections, we’ll need around 400,000 individuals to manage the 80,000 cooperatives,” said Ahmad.
Despite the logistical scale, the core spirit of this program lies in empowering the people through cooperatives. With active citizen participation, the Kopdes Merah Putih initiative is expected to become a new pillar of village economies—breaking the cycle of dependency on middlemen, strengthening basic goods distribution, and improving grassroots welfare.
