Jakarta – The government is currently designing the establishment of Village Cooperative Merah Putih as a strategic step to improve rural community welfare and address various economic challenges in villages. Minister of Cooperatives and SMEs, Budi Arie Setiadi, stated that this cooperative is expected to be a solution for villagers to increase their income and reduce poverty.
Budi Arie emphasized that the cooperative is dedicated to benefiting rural communities.
“Village Cooperative Merah Putih is here to break the chain of poverty and increase the income of rural communities,” he stated.
Besides serving as an economic driver in villages, the cooperative is also expected to protect residents from illegal online loans, middlemen, and loan sharks, which often burden village economies. With its savings and loan unit, the cooperative will provide healthier and fairer financial access for the community.
Minister of Home Affairs, Tito Karnavian, also highlighted the crucial role of villages in the national economy. Currently, around 44% of Indonesia’s population still resides in rural areas.
Without proper intervention, villages could experience economic decline. Therefore, this cooperative is expected to become a key economic growth engine, strengthening food security and improving the welfare of rural communities.
The government is fully committed to supporting this cooperative. One form of support is financing from Himbara Banks, which are projected to provide loans of up to IDR 5 billion per village cooperative. These funds will be used to build various supporting facilities such as storage warehouses, cold storage units, savings and loan units, and village clinics.
As the next step, the government will conduct socialization programs for village heads, village officials, and various related associations to ensure a unified understanding of this program.
“We will engage in discussions with the village head association and village officials so they fully understand the objectives of this program, which will bring great benefits to villages,” said Tito Karnavian.
With the implementation of Village Cooperative Merah Putih, villages are expected to become independent economic hubs, improve community welfare, and ensure food security. This program is planned to be rolled out nationwide in all villages across Indonesia soon.
