Jakarta – Deputy Minister of Villages and Development of Disadvantaged Regions, Ahmad Riza Patria, said the government will launch 80 thousand Red and White Cooperatives in July as part of efforts to strengthen the people’s economy and increase the competitiveness of the local economy in all villages and sub-districts in Indonesia.
“President Prabowo directed that village cooperatives play a role in distributing social assistance, direct cash assistance, fulfilling fertilizer needs, basic necessities, and even becoming LPG distributors. All to bring state services closer to the community,” said Riza at the Jakarta City Hall.
Riza emphasized that this cooperative will become a distribution center for basic needs of small communities, ranging from cheap basic necessities, subsidized LPG, to fertilizer and various forms of social assistance.
“This cooperative will be a distributor of LPG, fertilizer, basic necessities at cheaper prices, and can distribute direct cash assistance to social assistance,” he said.
The cooperatives will be equipped with supporting infrastructure, such as offices, health clinics, pharmacies, cold storage, and logistics vehicles. In addition, he emphasized that these cooperatives will absorb agricultural and fisherman’s products, thus opening new distribution channels that shorten the supply chain and increase the added value of local products.
Responding to this, the Minister of Cooperatives, Budi Arie Setiadi, added that this program is a strategy for developing a people’s economy based on local communities.
“We want village cooperatives to not only exist on paper, but to truly become pillars of the local economy that are alive, efficient, and have a real impact,” said Budi Arie.
Budi assessed that cooperatives must become independent people’s business entities, create jobs, and strengthen village resilience in facing economic challenges, including the food crisis and inequality.
To maintain accountability, the Ministry of Cooperatives and SMEs is working with the Corruption Eradication Commission (KPK) in supervising this program through the formation of a Supervision Coordination Team, anti-corruption training, and a risk-based reporting system.
The Red and White Cooperative Program is expected to not only expand access to goods and services, but also strengthen the local economic structure by fostering a spirit of mutual cooperation and independence. In the long term, this village cooperative will contribute directly to improving community welfare and sustainable regional economic growth.
“We need cooperatives that not only bring prosperity, but also maintain the integrity and trust of the community, in line with the government’s priority agenda in inclusive and sustainable economic development,” said Budi.
The Red and White Cooperative is a new hope for increasing the competitiveness of Indonesia’s local economy amidst the challenges of globalization and the dynamics of the world economy.
