Executive Summary

Key insights and market outlook

The Indonesian government is rapidly developing 80,000 Merah Putih Village Cooperatives (KDKMP) across the country, with a total budget of approximately Rp 128 trillion ³

. The project, led by state-owned enterprise PT Agrinas Pangan Nusantara, aims to provide infrastructure and operational vehicles for rural economic development. Construction began in late 2025 with a target completion date of March 2026 ⁴.

Full Analysis

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Deep Dive Analysis

Government Launches Massive Merah Putih Village Cooperative Development Program

Comprehensive Infrastructure Development

The Indonesian government has initiated an ambitious program to develop 80,000 Merah Putih Village Cooperatives (KDKMP) nationwide, representing one of the largest cooperative development initiatives in recent years ¹

. The project, managed by state-owned enterprise PT Agrinas Pangan Nusantara, involves constructing physical buildings and providing operational vehicles for these cooperatives ³.

Budget and Funding Structure

The development cost per cooperative unit is approximately Rp 1.6 billion, bringing the total project cost to around Rp 128 trillion ³

. Funding is being arranged through a corporate credit facility from state-owned banks (Himbara), with financial regulations being refined to support the project ³.

Implementation Timeline

Construction began in late 2025, with a challenging target completion date set for March 2026 ⁴

. PT Agrinas Pangan Nusantara has confirmed that the building process is progressing according to schedule, with detailed designs and regional price adjustments being implemented to accommodate varying construction costs across different regions ⁴.

Regional Variations and Cost Considerations

The construction costs vary significantly across regions, ranging from approximately Rp 1 million per square meter in Java to Rp 24 million per square meter in Papua ⁶

. These regional variations have been factored into the overall budget planning to ensure comprehensive coverage.

Government Rationale

The program addresses the critical issue that many villages lack suitable assets to establish operational cooperatives. As of now, 82,707 village cooperatives have been legally established, but only about 100 are fully operational ¹

. The government aims to bridge this gap through comprehensive infrastructure support.

References