Red and White Village Cooperatives: The Government’s Effective Way to Control Regional Inflation
Jakarta – The government is accelerating the operation of the Red and White Village Cooperatives (Kopdes Merah Putih) as a new strategy to control inflation at the regional level.
Minister of Cooperatives and SMEs Ferry Juliantono stated that these cooperatives will become a grassroots economic channel that stabilizes food prices while strengthening the economic resilience of rural communities.
Ferry also emphasized that accelerating the development of Kopdes’ physical facilities is a government priority.
“Once these cooperatives are operational, the inflation monitoring process will be more detailed and comprehensive, and government intervention can be carried out directly through the Village Cooperatives,” he said.
He explained that this accelerated development is stipulated in Presidential Instruction Number 17 of 2025. The government targets all Kopdes’ physical facilities, such as outlets and warehouses, to be completed by March 2026.
“Every day, we must inventory at least 1,000 land data because the President has targeted the completion of all physical construction of Village Cooperatives by March 2026,” he said.
By October 2025, 82,223 village cooperatives (Kopdes) had been legally incorporated, with a membership of 1.12 million. Of that number, 68,603 cooperatives had Village Cooperative Management Information System (Simkopdes) accounts, and most were actively updating their operational data.
Ferry emphasized that once village cooperatives were fully operational, these institutions would be effective instruments for maintaining food price stability and controlling inflation at the local level.
In addition to functioning as village economic institutions, Kopdes would also be direct distributors of various government programs, such as social assistance and community subsidies.
“If village cooperatives are operational, the state will once again be present, controlling products that are essential for the lives of many people. We can reduce imports and build self-sufficiency in food and other strategic sectors,” said Ferry.
Meanwhile, Minister of Home Affairs Tito Karnavian views the Red and White Kopdes as key to controlling inflation in the regions. According to him, village cooperatives can stabilize the prices of basic necessities through more efficient distribution.
“The key is village cooperatives,” Tito emphasized.
He added that, with an annual inflation rate of 2.65 percent until September 2025, the presence of Kopdes throughout the region will help maintain price stability and stimulate the local economy.
The government is optimistic that accelerating the operation of the Red and White Kopdes will be an effective way to maintain economic stability while ensuring that inflation control policies are implemented directly from the villages. * * *
