Indonesian Political, Business & Finance News

1,061 Merah Putih Village Cooperatives Ready to Absorb Village Products

| Source: VIVA Translated from Indonesian | Economy
1,061 Merah Putih Village Cooperatives Ready to Absorb Village Products
Image: VIVA

Jakarta, VIVA – The Minister of Cooperatives, Ferry Juliantono, stated that 1,061 Merah Putih Village/Sub-district Cooperatives (KDKMP) in East Java and Central Java have begun operations. These institutions are prepared to absorb various products from village communities.

According to the Minister, the presence of the Merah Putih Cooperatives is expected to strengthen the village economy by opening wider market access for local products. “The KDKMP that are already operational are guaranteed to serve as off-takers for various community products, ranging from agriculture, plantations, and fisheries to crafts and culinary goods,” Ferry said, as quoted from an official statement in Jakarta on Monday, 18 May 2026.

Furthermore, he ensured that the cooperatives will also play a role in the distribution and provision of basic necessities and subsidised goods for the community. President Prabowo Subianto officially inaugurated the operationalisation of the 1,061 KDKMPs for the East and Central Java regions, which was performed symbolically at the Merah Putih Cooperative in Nglawak Village, Nganjuk Regency, East Java, on Saturday (16/5).

Ferry revealed that the operationalisation of these 1,061 KDKMPs is merely the initial phase of a national cooperative development programme. In total, he noted that the construction of KDKMPs has reached nearly 9,200 units, which will be operated gradually across various regions. “This is the beginning of the KDKMP programme, where construction is almost 100 per cent complete for approximately 9,200 units, though the first phase involves 1,061 operational units,” he said.

Furthermore, the government aims for a large-scale expansion of KDKMP operations in the next phase. By August 2026, the number of operating cooperatives is targeted to reach tens of thousands. “Although we are targeting 20,000 units, we will strive our best to exceed that number,” added Ferry.

On the other hand, the government is also reviewing solutions for land scarcity issues in several regions that do not meet the minimum requirement of 1,000 square metres. One option being considered is the vertical construction of cooperative facilities. “We are considering the design of vertical outlets and warehouses for areas with limited land,” he said.

The President Director of PT Agrinas Pangan Nusantara, Joao Angelo De Sousa Mota, stated that Agrinas, alongside the TNI (Indonesian National Armed Forces) acting as executors for the construction of outlets, warehouses, and other supporting facilities, is optimistic that the target of 30,000 operational KDKMPs in the next phase can be achieved.

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