Government Accelerates Village Cooperative Development

Ambitious Target for Rural Infrastructure

The Indonesian government has set an ambitious target to establish and operationalize 80,000 Village Cooperatives (Koperasi Desa Merah Putih) across the country by March 2026. This initiative, mandated by President Prabowo Subianto, aims to enhance rural economic infrastructure and support local communities.

Project Details and Implementation

The development of these cooperatives is being managed by PT Agrinas Pangan Nusantara, with an allocated budget of Rp 1.6 billion per cooperative unit. The infrastructure development includes various physical facilities such as warehouses, retail outlets, and transportation vehicles. Minister of Cooperatives, Ferry Juliantono, confirmed that the project is on track to meet the deadline, stating that the physical buildings for all 80,000 cooperatives are expected to be completed and operational by March or April 2026.

Strategic Significance

This initiative represents a significant effort to boost rural economic development and provide essential infrastructure in villages that currently lack such facilities. The program not only aims to create economic hubs at the village level but also to empower local communities through cooperative ownership and management.

Implementation Challenges

While the initiative is ambitious and potentially transformative, its success will depend on effective project management, timely allocation of funds, and coordination between various government agencies and local stakeholders. The scale of the project, involving 80,000 units across Indonesia, presents both logistical and administrative challenges that need to be carefully managed.