Jakarta – President Prabowo Subianto has taken a revolutionary step by building 80 thousand Red and White Village Cooperatives throughout Indonesia. This program is real evidence of the government’s strong commitment to strengthening the foundation of an independent and just people’s economy.
This monumental step is reinforced by the issuance of Presidential Instruction (Inpres) Number 9 of 2025 concerning the acceleration of the establishment of Red and White Village/Sub-district Cooperatives, which has been officially signed by President Prabowo since March 27, 2025. This Inpres shows that the development of cooperatives is not just a program, but a national strategic agenda.
Cooperatives Minister Budi Arie Setiadi explained that each cooperative unit will receive initial funding of Rp5 billion, which when multiplied by the target of 80 thousand cooperatives produces a total investment of Rp400 trillion. This is the largest capital injection in Indonesia’s history in the cooperative sector.
“For example, if 80,000 is multiplied by Rp5 billion, that means around Rp400 trillion (total capital),” said Budi, emphasizing the large scale of the government’s vision.
To ensure sustainability and accountable governance, the government has prepared a cooperative financial assistance scheme through national banking. Training, supervision, and technical assistance will ensure that each cooperative is managed professionally and is safe from financial risks.
“Later, for example, the bank will help with training, overseeing finances so that assistance is needed,” continued Budi Arie Setiadi.
Furthermore, Deputy Minister of Cooperatives, Fery Juliantono said that this program not only presents cooperatives, but also creates multiple economic values. He emphasized that from a total investment of IDR 400 trillion, cooperatives can provide an economic impact of up to IDR 2,000 trillion in the next two years.
“The hope is that in 2 years, the Rp400 trillion that was disbursed can be leveraged to Rp2,000 trillion,” said Fery Juliantono.
Not only that, the Red and White Cooperative is also designed as a forum for empowering the community as a whole. Various segments of society—from housewives, youth, to health workers such as pharmacists—will be actively involved according to their respective fields.
“So mothers… young people… pharmacists will be provided by the Ministry of Health, showing inclusivity and social justice in this program,” added Fery.
As a cooperative born from the spirit of nationalism, the Red and White Cooperative plays a strategic role in financing MSMEs, the agricultural sector, and the national industry. The government emphasized that this cooperative will be the driving force of a strong and sovereign people’s economy.
With concrete steps, a mature funding scheme, and a strong vision of the people’s economy, the government of President Prabowo Subianto has confirmed its position as a pioneer of Indonesia’s economic transformation based on cooperatives and national solidarity. [^]
