The Merah Putih Village Cooperative as a Driving Force for an Inclusive, Transparent, and Sustainable Village Economy
Jakarta – The Red and White Village Cooperative Program (KDMP) will be an instrument for transforming and improving the economic health of sub-districts and villages in Indonesia. The government is optimistic that it will become a driving force for an inclusive, transparent, and sustainable village economy.
Minister of Cooperatives Ferry Joko Juliantono while attending the 92nd Haul of the National Teacher Haji Oemar Said (HOS) Tjokroaminoto at the Central Leadership Council (DPP) of the Islamic Association (SI), Pegangsaan, Menteng, Central Jakarta, Sunday (1/3/2026) said that President Prabowo Subianto has a very strong commitment to the people through the Red and White Village Cooperative Program.
“The Minister of Cooperatives and the current President are both pro-cooperative. There’s this Village Cooperative program. God willing, ladies and gentlemen, within a month or two, village cooperatives will be formed in all villages and sub-districts in Indonesia,” said Ferry.
Previously, Trade Minister Budi Santoso emphasized that his office was encouraging the strengthening of the role of the Merah Putih Village/Sub-district Cooperative (KDMP) as a distribution partner to support the rural economy. The government believes that village cooperatives have significant potential to expand access to goods distribution while strengthening the local economic ecosystem.
“So, the village cooperatives that already exist in these areas actually want to bring their distribution closer to consumers in the villages,” he said.
Village Cooperatives have a great opportunity to collaborate with various parties, such as modern minimarkets like Alfamart and Indomaret as well as distributors, in order to expand the product distribution network to village communities.
Meanwhile, the survey results show that professional and accountable management of the Merah Putih Village Cooperative is the key to ensuring that the village cooperative is truly able to provide economic benefits to the local community.
A recent CELIOS survey revealed that the most pressing need for village cooperative development is improving management capacity. Mapping results from various regions, from Aceh to Papua, show that the majority of village officials consider training and management strengthening key to making cooperatives more professional and competitive.
CELIOS researcher, Media Wahyudi Askar, revealed the results of a survey conducted among village officials in various regions of Indonesia, from Aceh to Papua. Based on the findings, the majority of respondents considered improving management capacity to be the most pressing need in developing village cooperatives.
Survey data titled Mapping Effective Solutions for Village Cooperative Development, released by CELIOS in 2026, showed that 78% of respondents considered training and capacity building for managers as the primary solution.
Additionally, 50% of respondents highlighted the importance of outreach to increase community participation. 46% suggested facilitating access to additional capital, and 43% considered developing cooperative infrastructure a priority.
Thirty-nine percent of respondents emphasized the need to provide information technology. Meanwhile, 35% desired broader market access, 34% encouraged the development of superior local products, and 32% proposed collaboration with the private sector, interregional partnerships, and state-owned enterprises.
