Jakarta, Indonesia Sentinel — Indonesian President Prabowo Subianto has unveiled an ambitious plan to establish tens of thousands of village cooperatives across the country as part of a national effort to achieve food self-sufficiency and promote rural economic development.
The initiative, called Koperasi Desa Merah Putih (Red and White Village Cooperatives), was formalized under Presidential Instruction No. 9 of 2025, signed on March 27. The regulation aims to accelerate the formation, development, and revitalization of village-level cooperatives in both rural and urban communities.
The government has set an ambitious targets with the creation of up to 80,000 Red and White cooperatives throughout Indonesia.
These village cooperatives will serve as community-based economic and social service centers, offering affordable groceries, savings and loan services, rural clinics, pharmacies. The cooperatives will be also built with facilities such as cold storage for agricultural and fishery products, and logistical distribution hubs.
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The President has appointed Coordinating Minister for Food Affairs Zulkifli Hasan (Zulhas) to lead the task force overseeing the project.
Speaking at the Ministry of Food Affairs in Jakarta on Tuesday, Zulhas said the cooperatives are designed to connect village economies directly to urban markets, helping to streamline distribution and reduce reliance on middlemen.
“The goal is to develop between 70,000 to 80,000 of these village cooperatives . They will serve as bridges linking rural potential especially agricultural and fishery products directly with urban centers,” he said, as reported by Kontan.id.
A key component of each village cooperatives will be cold storage facilities, allowing perishable goods to be stored and distributed more efficiently.
Zulhas noted that this infrastructure will not only support local producers but also ensure that essential goods from urban areas can be distributed back to the villages, helping close the supply chain loop.
The initiative is also expected to undercut the influence of traditional middlemen, who have long been criticized for squeezing farmers out of fair profits.
Prabowo’s cooperative push could mark a significant shift in Indonesia’s rural development strategy, positioning villages as active players in the national economy.
(Raidi/Agung)
