Jakarta — The government continues to strengthen the role of cooperatives as engines of people’s economy through a strategic initiative known as the Merah Putih Cooperative (KMP). This program represents a new hope for the revival of rural economies in Indonesia. It aims to establish around 80,000 cooperatives across villages and sub-districts nationwide, supported by central government funding (from the national budget/APBN) as well as coordinated funding from regional and village budgets.
KMP symbolizes the spirit of nationalism in developing a people-centered economy rooted in the values of mutual cooperation (gotong royong), economic democracy, and social solidarity. The program originates from Presidential Instruction No. 9 of 2025 as part of a national strategy to strengthen food self-sufficiency, promote equitable economic growth, and realize self-reliant villages on the path toward a Golden Indonesia 2045.
“This is not just an administrative task; it is an empowerment movement to make villages centers of inclusive and sustainable growth,” emphasized President Prabowo Subianto.
The government targets the establishment and strengthening of thousands of new cooperatives throughout Indonesia. The program’s development focuses on real-sector cooperatives such as those in agriculture, fisheries, livestock, and trade, as well as digital cooperatives that leverage information technology as a tool for economic empowerment.
This initiative is also part of efforts to accelerate the development of an inclusive economy. By positioning cooperatives as the main vehicle, the government aims to create broad participation opportunities for citizens to become active economic agents.
Coordinating Minister for Food Affairs, Zulkifli Hasan, stated that as of now, 9,835 village cooperatives have already been established. This number is expected to continue growing ahead of the official launch of the Merah Putih Village Cooperatives (Kopdes Merah Putih). In addition, around 130,000 existing cooperatives are still active and are planned to be integrated into the Kopdes Merah Putih system.
“Our target is to launch and commence operations of these village cooperatives on October 28,” Zulkifli said after a meeting with President Prabowo at the Presidential Palace in Jakarta.
As pillars of national prosperity, cooperatives are expected to drive real economic equality. Through shared ownership, the profits generated by cooperatives will return to their members—who are themselves part of the local communities. The thousands of Merah Putih cooperatives to be established will serve as concrete evidence that development does not always have to be top-down. Instead, it can start from the bottom—by the people and for the people.
