Ministry of SOEs Finalizes Funding for Red and White Village Cooperatives for Village Economic Revolution
Jakarta – The government through the Ministry of State-Owned Enterprises (BUMN) has shown a serious commitment to accelerating the transformation of the village economy by ensuring that the Red and White Village Cooperative (Kopdes) funding scheme runs optimally and is integrated into the BUMN ecosystem. This effort is a real step in realizing President Prabowo Subianto’s grand vision to build from the village and reduce national economic inequality.
Deputy Minister of SOEs, Kartika Wirjoatmodjo emphasized that 22 Kopdes pilot points are being prepared as an initial trial of the cooperative model that is directly connected to the SOE supply chain, including PT Bank Rakyat Indonesia, Perum Bulog, PT Pos Indonesia, and PT Pertamina Patra Niaga.
“We will jointly monitor this piloting so that it is successful, so that the failure rate of Kopdes Merah Putih can be minimized,” said Kartika firmly.
He added that the government is preparing a mock-up of a cooperative with a fully integrated display standard and business scheme. This mock-up will be a national model for 80 thousand Kopdes targeted to operate on October 28, 2025. The government is preparing a loan ceiling of up to IDR 3 billion per cooperative with a total funding requirement of IDR 400 trillion. This funding will be channeled through the State-Owned Bank Association (Himbara) as a revolving loan with a tenor of six years.
Support for this program also came from the Minister of Villages and Development of Disadvantaged Regions, Yandri Susanto, who said that Kopdes Merah Putih was not designed to eliminate BUMDes, but instead to strengthen and synergize with it.
“President Prabowo ensured that the presence of Kopdes Merah Putih will not kill BUMDes, but can go hand in hand and strengthen each other,” said Yandri.
He also emphasized the strategic role of Kopdes in suppressing the dominance of middlemen, controlling the price of basic necessities, and eliminating the clutches of loan sharks. With seven mandatory business units, including savings and loans, health clinics, pharmacies, and logistics warehouses, Kopdes Merah Putih is targeted to become a strong and competitive driving force for the village economy.
“This is not just an ordinary cooperative, this is a new village economic system that will make villages self-sufficient and no longer be the object of city economic exploitation,” Yandri emphasized.
The Ministry of SOEs is working closely with the Ministry of Cooperatives and SMEs and the Ministry of Villages to verify village assets, strengthen the legality of cooperatives, and ensure that all mock-ups are verified professionally. The regional task force will spearhead the supervision and selection of strategic locations to optimize the launch of this cooperative nationally.
The government also invites all village heads to actively participate in accelerating the formation of Kopdes. With a strong legal foundation and full support from the state, Kopdes Merah Putih is believed to be a new milestone in the revival of the people-based economy.
