Gov’t to Integrate Red-and-White Village Cooperatives with Village Enterprises for Stronger Economy

The Government continues to strengthen village economic ecosystem through the local wisdom-based thematic village development and Red-and-White Village Cooperatives (KDMP) that will be integrated with Village-owned Enterprises (BUMDes).

Minister of Villages and Development of Disadvantaged Regions Yandri Susanto said that his ministry will carry on coordination with 10 village associations as strategic partners in ensuring the program performs optimally throughout the country.

“The 10 village associations are the Village Ministry’s strategic partners that ensure the President’s programs encapsulated in the sixth Asta Cita (eight missions), including the Red-and-White Village Cooperatives, is effectively implemented. There are 12 action plans to realize the sixth Asta Cita, including the thematic villages,” he said in a press statement at the Presidential Palace compound, Jakarta on Wednesday (07/15).

The Minister went on to say that the Red-and-White Village Cooperatives collaborating with BUMDes will serve as an off-taker of communities’ agricultural produce. Therefore, the cooperatives will neither replace nor compete with BUMDes. They will complement each other in strengthening economic activities in villages, instead.

“Considering that there are as many as 75,266 villages, each with its own potential, every Village Cooperative will work together with BUMDes to ensure that all village products are developed in line with their respective potentials, so that they can provide tangible benefits to village communities,” Yandri stated.

Yandri added that all village potential will be optimized through the operations of the Red and White Village/Subdistrict Cooperatives. In addition to strengthening the local economy, the success of these cooperatives will also generate direct benefits for village governments through the distribution of business profits.

“Once they are fully operational, we will certainly maximize their functions by leveraging the potential of each village. After all, they are funded through the Village Fund, and 20 percent of the profits generated by the cooperatives will become a village’s locally generated income. This means that village governments and all their stakeholders have a strong interest in ensuring that the cooperatives succeed, as they will have positive impacts on the village. The remaining 80 percent of the profits will be returned to the village communities,” Yandri said.

In addition, he added that the thematic village development program has been implemented over the past year and has already shown positive results. (BPMI of Presidential Secretariat) (RAS/MMB)