Gov’t to Establish Red-and-White Village Cooperatives in 70,000 Villages

President Prabowo Subianto chairs a limited meeting with several ministers of the Red-and-White Cabinet at Merdeka Palace in Jakarta, Monday (03/03). (Photo by: BPMI of Presidential Secretariat)

In a bid to strengthen the village economy, the Government has decided to establish Red-and-White Village Cooperatives (Kop Des Merah Putih) in 70,000-80,000 villages across Indonesia.

This decision was made during a limited meeting with several ministers of the Red-and-White Cabinet led by President Prabowo Subianto on Monday (03/03), at Merdeka Palace in Jakarta.

Coordinating Minister for Food Affairs Zulkifli Hasan pointed out that the cooperatives will be the center for village economic activities, including a place where the community stores and distributes agricultural products.

“One of the decisions made was the establishment of the Red-and-White Village Cooperatives, which is abbreviated into Kop Des Merah Putih. These will be built in 70,000 villages,” he said in a press statement following the meeting.

The Coordinating Minister further stated that the Government will optimize existing village funds to support the program’s funding, adding that the State-Owned Banks Association (Himbara) will also contribute through a three-to-five-year installment scheme to ensure that the cooperatives can operate optimally from the beginning.

“It is estimated that one village will spend a budget of Rp3-5 billion. The village fund amounts to Rp1 billion per year, so there will be Rp5 billion in five years,” he said.

In the meantime, Minister of Cooperatives Budi Arie Setiadi stated that in its implementation, the cooperatives will be developed with three primary approaches, adding that there are approximately 64,000 farmer groups that are ready to convert into cooperatives, so the agricultural system and food distribution in the villages can be integrated more properly.

“There are three models. The first is to build new cooperatives. The second is to revitalize existing cooperatives, while the third is to establish and develop,” he said, adding that the cooperatives will strengthen the village economy and shorten the chain of goods distribution that has disadvantaged producers and customers.

“It is done to lower prices for the people,” Budi stressed.

Meanwhile, Minister of Villages and Development of Disadvantaged Regions Yandri Susanto underscored that the policy will be propped up by revisions of regulations related to village fund use, adding that the main objective of this policy is to ensure that villages develop and have a strong economic foundation.

“The focus of the Red-and-White Village Cooperatives, in essence, is about the food situation and others. The point is to advance villages, to properly develop villages. We will build villages and build Indonesia,” he remarked.

The Government hopes that the establishment of the Red-and-White Village Cooperative will strengthen the village economy, make food distribution more efficient, and enhance the well-being of village communities.

The program will also be continuously monitored so as to run effectively and bring real benefits to the people. (BPMI of Presidential Secretariat) (DH/MMB)