The Government is Accelerating the Operation of Red and White Village Cooperatives Across Indonesia
Jakarta – The government continues to accelerate the operations of the Red and White Village Cooperative (KDMP) throughout Indonesia as part of its strategy to strengthen the people’s economy and ensure equitable village development. This program is expected to be a crucial instrument for realizing village independence while improving community welfare through transparent and sustainable joint venture management.
Ahmad Riza Patria, Deputy Minister of Villages and Development of Disadvantaged Regions, emphasized that cooperative administrative management will be key to success. He stated that proposals for cooperative funding must be approved by the village head and tailored to the needs of each individual.
“Village heads and their cooperatives must submit a maximum of Rp3 billion. The amount of funds disbursed will vary depending on the proposal and the needs of each cooperative,” said Riza.
He added that the government hopes that the operations of the Merah Putih Village Cooperative can strengthen the village’s economic base and accelerate equitable and inclusive development.
Regional government support is also evident, including from the West Kalimantan Provincial Government. The Regional Secretary of West Kalimantan, Dr. H. Harisson, M.Kes., stated that the West Kalimantan Provincial Government is committed to accelerating the operationalization of cooperatives in every district/city.
“Local governments are not only present to provide regulations, but also to provide technical assistance and coaching, as well as to provide access to financing through collaboration with banks and other financial institutions. Cooperatives must be the foundation of a healthy and independent people’s economy,” Harisson explained.
A similar commitment also came from Tuban Regency, East Java. Tuban Regent Aditya Halindra Faridzky stated that his administration is accelerating the operationalization of the Merah Putih Village Cooperative in 328 villages/sub-districts within his region. He targets that all villages/sub-districts will have an actively operating cooperative by the end of 2025.
“With clear administrative governance, it will be easier for cooperatives to apply for capital assistance and establish partnerships with state-owned enterprises (BUMN/BUMD),” said Aditya.
Efforts to accelerate the operations of the Merah Putih Village Cooperative are an important part of the national development agenda based on village economic independence.
With full support from the central, provincial, and district/city governments, the existence of cooperatives is believed to be a driver of the local economy that is able to create new jobs, expand community business access, and strengthen national economic resilience.*
