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Encouraging the Merah Putih Cooperative to Open New Job Opportunities

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Jakarta – The government continues to push for the transformation of rural economies through the establishment of 80,000 Merah Putih Village Cooperatives (Kopdes), which are set to be officially launched on July 12, 2025, coinciding with National Cooperative Day. This initiative is projected to open between 1 to 2 million new jobs across Indonesia.

Minister of Cooperatives and SMEs, Budi Arie Setiadi, stated that the presence of tens of thousands of cooperatives will generate high demand for labor in various sectors.

“Some of the labor needed for Merah Putih Village Cooperatives include supervisors and drivers who will transport goods. Additionally, there will be a need for truck drivers to carry goods,” said Budi Arie.

If each cooperative operates two trucks, at least 160,000 drivers will be needed just for the distribution of goods.

“For example, 2 trucks for each cooperative, 80,000 cooperatives, multiplied by 2, that’s 160,000. Just from the truck drivers alone, we could already create 160,000 jobs,” he added.

The government aims to ensure that every village in Indonesia has an active cooperative, including 27,000 villages that currently do not have any cooperatives at all.

“This means that from the 27,000 villages that don’t have cooperatives, new cooperatives can be formed. The rest can be developed or revitalized depending on the results of each village’s deliberations,” Budi Arie explained.

Support for this initiative also comes from the regional guarantee sector. Director of Finance at PT Jamkrida Jabar and Chairman of the Regional Guarantee Company Association (Aspenda), Agus Subrata, believes the Merah Putih Village Cooperative program is a strategic opportunity to expand the business capacity of regional guarantee companies.

“From a business standpoint, the cooperative will generate income for us, and from another perspective, we can be involved in realizing the government’s Asta Cita program to encourage regional economic growth, which will automatically contribute to national economic growth,” said Agus.

He emphasized that as a Regional-Owned Enterprise (BUMD), regional guarantee institutions operate with good corporate governance and professionalism.

“We have corporate guarantees so that our guarantee activities can be accountable because our shareholders are the local governments,” he explained.

The Ministry of Cooperatives and SMEs (Kemenkop) is also exploring collaboration with Aspenda to strengthen the Merah Putih Village Cooperative ecosystem. The presence of a guarantee institution in the cooperative system is believed to ensure the program runs sustainably and effectively.

Through this cross-sector collaboration, the government hopes that the Merah Putih Village Cooperative will not only become a center for rural economic growth but also create vast job opportunities and improve the welfare of communities across the country.

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