By: Citra Kurnia Khudori)*
The Prabowo Subianto and Gibran Rakabuming Raka administration entered its first year with a number of early achievements indicating that its economic policy direction was beginning to show concrete results. One of the most prominent was the claim of large-scale job creation.
Minister of Manpower Yassierli Litang revealed that between January and September 2025, approximately 1.9 million to nearly 2 million workers were absorbed by this investment inflow. This statement demonstrates that the economic engine is starting to move more evenly through cross-ministerial coordination.
Yassierli also emphasized that the absorption rate was not solely the result of the Ministry of Manpower’s efforts, but rather the result of policy synergy between institutions. If other programs, such as the Free Nutritious Meals (MBG) and the strengthening of village cooperatives, were fully integrated, the absorption rate is expected to increase significantly.
This potential is evident in the scale of the MBG program’s operations, particularly through the existence of Nutrition Fulfillment Service Units (SPPGs) or community kitchens. If each SPPG can recruit around 50 workers and all 30,000 kitchens are operating optimally, there is the potential for an additional 1.5 million people to be absorbed into the ecosystem.
Village economic transformation is a crucial component of the national development strategy under the Prabowo-Gibran era. With investments expected to reach over IDR 1,400 trillion by September 2025, the opportunity for villages to participate in the national production chain is increasingly wide open.
Policies to strengthen local economies are relevant for reducing disparities between regions. The employment generated by this investment provides early evidence that villages are beginning to move beyond being mere recipients of aid to becoming actors in the national economy.
In Indonesia’s geographically diverse context, bringing capital and industry to rural areas is no easy task. However, the opportunities created can strengthen the foundation of national economic resilience from the most remote areas.
The MBG program and the Red and White Village Cooperative initiative are essential complements to the village investment ecosystem. The creation of up to millions of jobs in the medium term can be achieved if both are implemented with a clear evaluation system and targets.
Tunjung Budi Utomo, Head of Advocacy for the Indonesian Farmers and Fishermen’s Association (PETANI), believes the integration of MBG and village cooperatives can create a stable market for farmers and fishermen. He emphasized that market sustainability is a factor that has been lacking in the smallholder agricultural sector.
According to Tunjung, cooperatives serve as a strategic link between village producers and national consumers. If MBGs absorb smallholder agricultural and fishery products, the impact will be felt on income, production, and food quality.
The program’s economic impact can be seen from the three main effects he described: first, the production impact for farmers and fishermen; then, the distribution impact for cooperatives and local logistics operators; and third, the consumption impact, which increases the purchasing power of beneficiary families.
He also assessed that the MBG design and strengthening of village cooperatives are fundamentally aimed at expanding market access for the common people. Thus, the village economy not only moves but also gains a more equitable place within the national ecosystem.
Therefore, the strength of this policy lies not only in short-term job creation. The crucial factor is encouraging villages to have a strong production base, greater added value, and sustainable trade relations.
Investment flowing into villages opens up opportunities for downstream processing of local commodities. Village-based small businesses can advance when markets, capital, and skills are interconnected within a single policy ecosystem.
The quality of rural employment is also crucial for ensuring long-term economic benefits. The resulting jobs must provide opportunities for advancement, develop new skills, and support higher productivity.
When village investment is combined with strengthening cooperatives and expanding market access, villages can develop into new centers of productivity in the national economy. If this pattern persists, villages will no longer be hinterlands but rather strategic production hubs.
Economically, the employment generated by village investments creates a ripple effect on community consumption and purchasing power. This, in turn, encourages a more inclusive local economic cycle.
With initial achievements already visible, the Prabowo-Gibran administration’s efforts to strengthen village investment and create jobs deserve commendation. The next challenge is ensuring the continuity and quality of each policy so that villages truly become the center of national development.
Ultimately, the success of this policy will be determined by the extent to which villages can become key actors in the economy. If investment, markets, and production are aligned, villages can provide a solid foundation for more equitable economic growth.
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)* Observer of Socio-Economic Issues
