Government Accelerates Kopdes Merah Putih Cooperative Development

Nearing 20,000 Cooperative Target by Year-End

The Indonesian government is on track to achieve its ambitious target of developing 20,000 Kopdes Merah Putih cooperatives by the end of 2025. Minister of Villages and Development of Disadvantaged Regions, Yandri Susanto, confirmed that the development is nearing completion, with significant progress made in various regions across Indonesia. The initiative is part of a broader plan to establish 80,000 cooperatives by mid-2026, as directed by President Prabowo Subianto.

Addressing Land Acquisition Challenges

Despite the progress, the development faces challenges, particularly regarding land acquisition. Yandri noted that many areas lack suitable land due to either insufficient size or strategic location. To mitigate these issues, the government is promoting collaboration with private companies and local communities. Examples include land donations by citizens in Kalimantan Barat and infrastructure contributions by private developers in Sulawesi Selatan, where population density is high.

Implementation Strategy and Future Plans

The government is implementing the Kopdes Merah Putih program in phases to manage resources effectively and address regional needs. While the immediate target is to complete 20,000 cooperatives by 2025, the long-term goal remains to establish 80,000 cooperatives by mid-2026. The phased approach allows for adjustments based on regional challenges and resource availability.

Economic and Social Impact

The development of Kopdes Merah Putih cooperatives is expected to have a significant economic and social impact on rural communities. These cooperatives aim to enhance financial inclusion, provide economic opportunities, and support local development initiatives. By empowering local economies, the program aligns with the government's broader strategy to promote inclusive growth and reduce regional disparities.